China Deal Review: Startup funding suffers steep fall in Feb as virus slows dealmaking

A woman in red jacket and black pants walking on sidewalk during daytime. Source: Macau Photo Agency/Unsplash

Venture capital deals in China suffered a steep 44.21 per cent decline in transaction value in February 2020 largely on account of the impact of the novel coronavirus outbreak that has thrown business activity out of gear and far fewer big-ticket funding rounds. The first coronavirus case was reported in China’s Wuhan province on December 31, 2019.

According to proprietary data compiled by DealStreetAsia, Chinese startups have raised an aggregate of $901.25 million in the past month, down 44.21 per cent compared to the $1.62 billion recorded in January 2020. Despite the sharp decline in deal value, transaction activity in volume terms at 34 in February continued to match the momentum set in the first month of 2020 at 33 deals.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter