With growing tensions starting to affect U.S. investment in China, it seems logical to conclude the 44% drop in Q2 venture funding in Asia is mainly due to a pullback by investors in Chinese startups.
But that doesn’t appear to be the case, at least according to Crunchbase numbers. In fact, China’s venture market seems to have steadied from last year, while uncertainty continues to roil the funding markets in the region’s other large venture hubs.
Meanwhile, India, South Korea, Singapore and Israel all saw significant drops in venture funding when comparing Q2 of this year to the same time last year.
There is no denying the strained relationship between China and the U.S. and its effect on investments in the world’s second-most populated country.
Venture capital giant Sequoia Capital announced in June it would break up from its China and India arms, likely a result of more promised regulations involving U.S.-based investment in China.
It also was reported last week President Joe Biden plans to sign an executive order to limit U.S. tech investments in China by mid-August.
Despite the increasing tensions, the venture market in China actually saw some gains both quarter over quarter and year over year — although numbers for the first half of the year were still down.
Source : crunchbase
