Venture capitalists poured a record US$37 billion into China startups last year, more than double the level compared to 2014, Bloomberg News reported, citing market intelligence firm Preqin.
The investment involved a total of 1,555 deals, according to the report.
“The annual shift from US$4.5 billion to US$15 billion to US$37 billion demonstrates the immense appetite that the VC industry in China is currently experiencing,” Felice Egidio, head of venture capital for Preqin, was quoted as saying.
China is narrowing the gap with the US, the birthplace of modern venture capital.
The value of US deals hit US$68 billion last year, up from US$56 billion, according to Preqin.
China’s venture boom created some of the world’s most valuable startups, including smartphone maker Xiaomi, ride-hailing service Didi Kuaidi and peer-to-peer lender Lu.com.
Still, there are concerns that too many startups have been set up in certain sectors in China, triggering costly price wars to win customers, the report noted.
Venture investors pulled back in the fourth quarter, cutting US$7.8 billion in deals, compared with about US$13 billion in the third quarter, it said.
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