<article><p><span style="font-weight: 400;">Privately-held companies headquartered in Greater China raised nearly $11.3 billion in the second quarter of this year, registering a sharp 33.5% year-on-year decline, finds <a href="https://www.dealstreetasia.com/reports/greater-china-deal-review-q2-2022/">our latest report</a>.  </span></p></article>

<p><span style="font-weight: 400;">Privately-held companies headquartered in Greater China raised nearly $11.3 billion in the second quarter of this year, registering a sharp 33.5% year-on-year decline, finds <a href="https://www.dealstreetasia.com/reports/greater-china-deal-review-q2-2022/">our latest report</a>.  </span></p>
<p>A drop in the number of megadeals—these are transactions worth $100 million and more—meant that the market&#8217;s record 605 deals could not prop up its quarterly performance, according to <a href="https://www.dealstreetasia.com/reports/greater-china-deal-review-q2-2022/">Greater China Deal Review: Q2 2022</a>.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-303608" src="https://media.dealstreetasia.com/uploads/2022/08/qs-greater-china.png?resize=640,420" alt="" srcset="https://media.dealstreetasia.com/uploads/2022/08/qs-greater-china.png?w=912 912w, https://media.dealstreetasia.com/uploads/2022/08/qs-greater-china.png?resize=300,197 300w, https://media.dealstreetasia.com/uploads/2022/08/qs-greater-china.png?resize=768,504 768w" sizes="(max-width: 912px) 100vw, 912px" data-recalc-dims="1" /></p>
<p><span style="font-weight: 400;">The quarter saw 23 megadeals worth nearly $5.1 billion in total, marking a 34.3% decline in volume and a 20% drop in value from Q1 2022. This was the third consecutive quarter to witness a drop in megadeal count. </span></p>
<p>In another sign of a weak interest in large, growth-stage deals, the average size of deals further declined to $21.2 million in Q2, down 42.7% from the previous quarter. Meanwhile, the median deal size dropped to $10 million.</p>
<p><span style="font-weight: 400;">Semiconductors, biotech, and auto &amp; parts startups gained favour among investors as they pocketed bigger cheques in Q2. </span></p>
<p><span style="font-weight: 400;">The quarter’s biggest fundraisers included chipmaker CanSemi Technology, which pocketed about $672 million to expand its production of industrial and automobile chips. Electric vehicle (EV) startup WM Motor raised $600 million ahead of a planned Hong Kong IPO, while biotech firm MegaRobo Technologies closed a $300-million Series C round from investors, including Goldman Sachs’s private investment arm. </span></p>
<p><span style="font-weight: 400;">Beijing, Shanghai, Shenzhen, and Hangzhou retained their positions as top startup hubs, while Sequoia Capital emerged – once again – as the top investor during the quarter. </span></p>
<p>Investors that DealStreetAsia spoke to highlighted the need for diversification amid the ongoing volatility. &#8220;<span style="font-weight: 400;">People are saying that we&#8217;re at a rather late stage of a global bull market, or even a recession, so global investors &#8211; including those from mainland China &#8211; are looking more seriously into products away from the public market,&#8221; said Hywin Holdings CFO Lawrence Lok. &#8220;</span><span style="font-weight: 400;">PE is naturally an asset class to look into, and it will take an important place in the overall portfolios of many investors. So is private credit.&#8221;</span></p>
<h3>H1 2022 scorecard</h3>
<p><span style="font-weight: 400;">With 968 transactions, the first six months of this year recorded an 8.9% increase in deal volume over H1 2021. </span><span style="font-weight: 400;">However, a scarcity of megadeals led to a dip in the half-year fundraising proceeds. Startups raised just under $23.6 billion in the January-June period, down 42.6% from $41.1 billion recorded in the same period last year.</span></p>
<p><span style="font-weight: 400;">A host of factors ranging from the global economic slowdown to geopolitical uncertainties and a slump in startup valuations could further weigh heavily on fundraising performance in H2 2022. </span></p>
<hr />
<p>The <a href="https://www.dealstreetasia.com/reports/greater-china-deal-review-q2-2022/">Greater China Deal Review: Q2 2022</a> report has extensive data on:</p>
<ul>
<li aria-level="1">Quarterly and monthly startup fundraising trends</li>
<li aria-level="1">Top deals of Q2 2022</li>
<li aria-level="1">Top sectors that attracted investors</li>
<li aria-level="1">Insights from prominent investors on the fundraising scene</li>
</ul>
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A drop in the number of megadeals meant that the market's record 605 deals could not prop up its quarterly performance.

Greater China's startups record 33.5% yearly slump in deal value in Q2 as megadeals become scarce

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Greater China's startups record 33.5% yearly slump in deal value in Q2 as megadeals become scarce

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