The venture capital (VC) funding for startups in China dropped 44.8% year-on-year (YoY) during January-April 2023, reaching $11.6 billion from $21.2 billion in the same period last year. 

Despite this downturn, Beijing outperformed global markets, emerging as a resilient force in the venture capital landscape, London-based data and analytics firm, GlobalData, said.

Deal volume witnessed a 19.7% year-on-year (YoY) decline from 1,322 to 1,061.

"With growing investor cautiousness, several countries globally, including China, recorded a negative shift in VC funding activity," said Aurojyoti Bose, Lead Analyst at GlobalData.

The decline in markets such as the US, the UK, and India have far surpassed China.

In January-April 2023, deal volume for VC funding in the US, the UK, and India dropped by 44.3%, 29.4%, and 49.5% YoY, respectively. The decline in value was even more substantial at 51%, 53.2%, and 77.8% for these markets, respectively.

As a result, China continues to be the key Asia-Pacific (APAC), as well as global market and stands just next to the US in terms of VC deals volume and value. It accounted for 15.2% of the number of VC deals announced globally during January-April 2023 and 13.7% of the total deal value.

Bose, however, said that the venture capital downturn in China suggests a "more cautious approach" from investors in the current market.

(Editing by Seban Scaria seban.scaria@lseg.com)