Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated AvatarsRead Now

China’s Venture Investors See 65% Drop in Fundraising

There will be a lot less money sloshing around China’s tech startups next year—at just the time when they’re going to need it most.

VC firms that invest U.S. dollars in Chinese tech startups have raised far less money this year than in the past. Such firms have raised $4.2 billion this year so far, down 65% from all of last year, while the number of new funds has decreased by two-thirds to 24, according to data provider Preqin. China-based VC firms that invest in startups using yuan, the country’s currency, experienced an even steeper drop: Just 14 funds raised the equivalent of $1.7 billion in yuan, down 79% from last year.

The decline follows China’s regulatory crackdown on tech companies such as Alibaba and Didi Global as well as a slowdown in China’s economic growth. The drop means there will be less capital available for China’s startups to spend on growing their businesses, from hiring software engineers to online advertising. It could also curb startups’ valuations, which have kept rising even as Chinese tech stocks have collapsed.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Market Research culture ai
Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated Avatars
A selection of AI-generated selfies (good ones on the left, duds on the right) of the author Zara Stone.
At 7 a.m. on August 22, 2022, Yaron Inger woke up to find his business irrevocably changed. The co-founder and chief technology officer of Lightricks, which develops Facetune and other popular media-editing apps, scrolled through his newsfeed, his eyes flicking from one image to another. While Inger slept, Stable Diffusion, an open-source artificial intelligence text-to-image generator, had...
Latest Briefs
 
Google Invests $300M in OpenAI Rival Anthropic
Bankman-Fried’s Company Used to Buy Robinhood Shares Files for Bankruptcy
Musk Found Not Liable in ‘Funding Secured’ Tesla Trial 
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
A selection of AI-generated selfies (good ones on the left, duds on the right) of the author Zara Stone.
Market Research culture ai
Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated Avatars
At 7 a.m. on August 22, 2022, Yaron Inger woke up to find his business irrevocably changed. The co-founder and chief technology officer of Lightricks , which develops Facetune and other popular media-editing apps, scrolled through his newsfeed, his eyes flicking from one image to another.
Art by Mike Sullivan.
Exclusive crypto
Genesis Creditors Could Miss Out on Recent Crypto Rally
Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy last month, lifting the value of customers’ crypto assets stuck in Genesis accounts.
Art by Clark Miller.
The Big Read culture
‘I’m Like a Guinea Pig—I’ll Take Anything’: An Explosion of Supplements Hits Tech’s Kitchen Counters
When Courtney Reum wakes up in his Los Angeles home, it’s time to freeze, shake and dangle upside down.
Amazon executive chairman Jeff Bezos. Art by Mike Sullivan
Exclusive e-commerce amazon
How Amazon’s Bricks-and-Mortar Dreams Hit a Wall
If Amazon’s ambitious vision for becoming a power in bricks-and-mortar retail had gone to plan, last month would have been a big milestone for the company.
Photos by Bloomberg
The Briefing markets google
For Tech CEOs, ‘Challenging’ Means Dismal
Challenging! That’s the euphemism of the moment, used by way too many tech CEOs (including Tim Cook and Sundar Pichai tonight and Mark Zuckerberg and Evan Spiegel in recent days) to describe either 2022 or the current moment or both.
YouTube CEO Susan Wojcicki. Photo by Bloomberg
Creator Economy google policy
YouTube’s Ad Revenue Falls Again; More U.S. Pressure on TikTok
A continued decline in YouTube ad revenue spells bad news for creators who earn money from the video-sharing site.