Chinese venture investing slows in Q4, but posts solid year

Venture capital deal making in China fell during the final months of 2018, but for the year rivaled that in the United States as the leading global center for investing.

The end-of-year slowdown comes as Chinese economic growth slows and a trade war builds with the United States. In the fourth quarter, deal volume slipped 25 percent from a year earlier to 713 transactions, according to data from Preqin reported by Bloomberg.

At the same time, capital invested fell 12 percent to $18.2 billion, the data shows.

Nonetheless, greater China posted a solid year of investing in 2018 with $107 billion allocated to 4,281 deals, Preqin reported separately. That’s 39 percent of global venture capital and 29 percent of deals for a region that includes China, Hong Kong, Taiwan and Macau.

China saw seven of the year’s largest deals.

North American deal value came to $113 billion in 2018 with 5,510 deals funded, Preqin said. The region attracted 41 percent of global deal value and 37 percent of deal volume.

Overall the year marked a new record for worldwide venture capital, with $274 billion invested and 14,889 deals completed. Deals value rose 43 percent from the previous record of $192 billion in 2017.

The year also set a global record for exit value, with 1,094 transactions valued at $165 billion.