China-focused venture capital fundraising is heading for its weakest first half year in at least eight years, data from researcher Preqin showed, as a teetering economic recovery and Sino-U.S. tensions unsettle investors and startups.
Concern about the impact of a weak business environment on startups’ prospects and valuations means a turnaround in fundraising may take time as venture funds take longer to evaluate potential deals, investors and advisers said. Only two unicorns – or startups with valuations of $1 billion or more – have been minted in the world’s second-largest economy so far this year, CB Insights data showed.
