China’s Venture Capital/Private Equity Market Returns to Health in 2021 with 84.5% Growth in Funds Raised

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China’s venture capital (VC) and private equity (PE) scene saw a return to robust health in 2021 with growth in funds raised of over 80%.

China’s VC/PE market raised 2.21 trillion yuan in funds in 2021, for a year-on-year rise of 84.5%, according to figures from Pedata.com.

Pedata.com further indicates that in 2021 the VC/PE market saw a total of 12,327 investments, for a YoY rise of 63.1%, while the total investment amount was 1.42287 trillion yuan, for YoY growth of 60.4%.

In 2021 VC transaction numbers and volume approached a near 5 year-peak, accounting for 79% of all VC/PE market transactions and 49% of the transaction sum.

As of the end of 2021 China was host to 15,012 private equity and venture capital fund managers, according to figures from the Asset Management Association of China (AMAC).

It was also home to 30,801 private equity investment funds worth 10.51 trillion yuan, and 14,510 venture capital funds worth 2.27 trillion yuan in total.

Out of 613 initial public offerings (IPO’s) of Chinese companies in 2021, 415 had a background involving venture capital or private equity.