China VC Fundraising Heads for Record Quarter on State Tech Push

China VC fundraising is on track for a record first quarter as Beijing channels more state-backed money into technology sectors such as AI, robotics and quantum computing.

Newly committed capital to venture funds reached RMB86bn(USD12.5bn) in January and February alone, already above the previous quarterly high of RMB68.9bn set in Q3 2021, according to data from the Asset Management Association of China cited by Reuters.

Nearly all of the biggest backers of new yuan-denominated VC funds in the quarter were government entities or state-owned firms, consultancy Zero2IPO said.

The shift underscores Beijing’s push to strengthen funding for strategic technologies, though some investors warned that heavy state participation in China VC fundraising could distort capital allocation and inflate valuations.