Jun 25, 2021

Top 10 VC funding rounds in China in the first quarter 2021

Kate Birch
8 min
VC investment in China is strong and especially in AI and green technologies. Totalling nearly US$9bn, we outline the top 10 financings in Q1, 2021

While Asia Pacific’s venture activity was impacted ahead of other regions worldwide due to the pandemic, VC activity in volume recovered quite quickly, with momentum building in Q1 2021 delivering a robust level of both financing volume and VC invested.

Unsurprisingly, China attracted the largest deals of the quarter.

“VC investment is tremendously strong in China, with a significant amount of dry powder available in the market. Investor interest is quite widespread, with many different industries and technologies attracting attention. AI has remained a very significant area of investment, particularly around embedded solutions, while non-fungible toke (NFT) is one area that is really starting to heat up.” Egidio Zarrella, Partner, Clients and Innovation, KPMG China

During Q1 2021, China unveiled its 14th Five-year Plan, which is expected to guide China’s economic and social development activities over the next five years. It includes a strong focus on making the country self-sufficient when it comes to scientific research and tech development. This plan is expected to drive investment in areas like semiconductors, chip manufacturing and green technologies.

Looking ahead to the current quarter, VC investment in China is expected to focus significantly on embedded technologies like AI in healthcare. Green technologies will likely also gain increasing investments given China’s commitment to become Net Zero by 2060. Foodtech is also poised to gain some traction among investors, particularly in Hong Kong, where there is increasing interest in alternatives to traditional meat.

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