The value of venture deals in China in the second quarter fell 77% from a year earlier amid concerns about the U.S.-China trade war and hefty startup valuations, Bloomberg reported, citing research firm Preqin’s data.
The value of investments dropped to $9.4 billion from $41.3 billion, according to the report. The decline was steep in part because Ant Financial’s $14 billion fundraising happened in the second quarter of 2018.
The report raises a question about whether China’s tech boom is coming to an end. Some startup founders have already been talking about a tougher fundraising environment since late last year.
Despite the uncertainty, some major startups are trying to raise more money at a higher valuation, and the outcome of their fundraising talks will be closely watched by other founders. For example, The Information reported last month that social ecommerce startup Xiaohongshu is in talks with Softbank and other investors to raise as much as $500 million at a valuation of $6 billion.