China startup deals shrink as fundraising for investors plummets

Chinese startups continue to weather tough times as private investors, caught in a cash crunch, are concentrating money into fewer deals.

China’s deal-making activity for startups in the six months ended June halved from a year ago to 1,910, according to data from consulting firm ChinaVenture’s research arm. The amount invested in domestic startups during the first half of 2019 plummeted 54% to $23.2 billion.

The slide in startup investment comes as the money behind the money shrinks amid a cooling economy in China that is exacerbated by a trade war with the U.S. Fundraising for investors was already showing signs of slowdown a year earlier. In the first half of this year, private equity and venture capital firms in China secured 30% less than what they had raised over the same period a year ago, amounting to a total of $54.44 billion; 271 funds managed to raise, down 52%.

That money from limited partners is also flowing to a small rank of investors. Twelve institutions accounted for 57% of all the capital landed by VCs and PEs in the period. Investment coffers that have gotten a big boost include the likes of TPG Capital, Warburg Pincus, DCG Capital,

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