ChainCatcher report, according to the Financial Times, after three years of record lows, Chinese venture capital firms are accelerating efforts to raise new funds, seeking to capitalize on renewed investor interest in China’s technology sector. Data from Asante Capital shows that at least 60 new USD-denominated funds are planning to raise approximately $35 billion in total, with around 40 of them being venture capital funds. Firms such as HSG, IDG Capital, Matrix Partners China, and Ming Shi Capital are currently promoting new funds or preparing to launch fundraising campaigns, while ZhenFund and Qiming Venture Partners have recently completed their fundraising. Successful IPOs by tech companies such as Zhipu and MiniMax, along with advancements in companies like Moonshot AI, DeepSeek, and robotics, have driven renewed investor attention toward China’s technology sector. Some investors view allocations to Chinese AI as a hedge against U.S. market exposure, given that Chinese firms compete aggressively on cost and offer lower-priced model services. However, market participants note this does not signify a full return to prosperity for Chinese venture capital, but rather a selective resumption of USD fundraising after three consecutive years at historic lows. Preqin data shows that in 2022, 1,105 China-related funds raised $150 billion, whereas in 2025, only 97 funds raised $13.6 billion. Meanwhile, some major U.S. investors remain on the sidelines due to restrictions on investments in sensitive technologies, while European and Middle Eastern capital is showing stronger interest. Investors in this current “buyer’s market” are seeking greater co-investment rights and demanding that fund managers commit more of their own capital. At the same time, substantial capital is competing for a limited number of high-conviction opportunities, particularly concentrated in the AI sector.
Chinese venture capital firms race to raise $350 billion in new funds after a three-year downturn
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Summary
Chinese venture capital firms are accelerating fundraising for new funds after three years of low activity, with over 60 dollar-denominated funds aiming to raise $350 billion. Investor sentiment is shifting as tech companies like Zhipu and MiniMax achieve strong IPOs. Advances in AI and robotics are drawing increased attention, with some viewing China’s AI sector as a hedge against U.S. market exposure. Despite renewed interest, the recovery remains selective, not a full-scale boom. Preqin data shows a sharp decline in fund activity from 2022 to 2025. European and Middle Eastern capital is becoming more involved, while U.S. investors remain cautious. In this competitive market, investors are demanding greater co-investment rights and higher manager commitments. Altcoins to watch may benefit as VC capital flows into sectors such as AI.
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