Chinese VC Funds Bounce Back with a Vengeance After Three-Year “Winter,” Eyeing Combined $35 Billion from at Least 60 USD Funds

August 2nd. According to the Financial Times, after experiencing a record 3-year low, Chinese venture capital firms are accelerating the raising of new funds, seeking to seize the opportunity as investors reignite interest in the Chinese tech sector. Data from Asante Capital shows that currently at least 60 new US dollar funds plan to raise a total of around $35 billion, with approximately 40 of them being venture capital funds.

HSG, IDG Capital, Qiming Venture Partners China, and GGV Capital are promoting new funds or preparing to start fundraising, while firms such as ZhenFund and Legend Capital have recently completed fundraising. The successful IPOs of companies like Horizon Robotics and MiniMax, as well as advancements in the dark web analytics, deep search, and robotics fields, are rekindling investor interest in Chinese tech. Some investors are allocating to Chinese AI as a way to hedge against the US market, given that Chinese companies are fiercely competitive on costs and offer lower-priced AI services.

However, industry insiders indicate that this does not mean that Chinese venture capital has returned to a period of prosperity, but rather that US dollar fundraising is selectively rebooting after hitting a 3-year low. Data from Preqin shows that in 2022, a total of 1,105 China-related funds raised $150 billion, while in 2025, only 97 funds raised $13.6 billion.

Currently, some large US investors continue to remain cautious due to restrictions on sensitive technology investments, while European and Middle Eastern funds are showing increased interest. Investors in the current "buyer's market" are vying for more co-investment rights and demanding fund managers to commit more of their own capital. At the same time, a large amount of capital is competing for a limited number of high-conviction projects, especially in the AI sector.