After three years of winter, Chinese VCs are competing to raise funds, with at least 60 dollar funds planning to raise 35 billion dollars

According to the Financial Times, after three years of record low stagnation, Chinese venture capital firms are accelerating the fundraising of new funds, seeking to capitalize on investors' renewed interest in the Chinese technology sector.

Data from Asante Capital shows that at least 60 new dollar funds are planning to raise a total of about $35 billion, of which about 40 are venture capital funds. HSG, IDG Capital, Matrix Partners China, and Ming Shi Capital are promoting new funds or preparing to start fundraising, while ZhenFund and Qiming Venture Partners have recently completed fundraising.

The successful listings of technology companies such as Zhipu and MiniMax, as well as progress in projects like The Dark Side of the Moon, DeepSeek, and the robotics field, have prompted investors to refocus on Chinese technology. Some investors view allocating to Chinese AI as a way to hedge bets on the U.S. market, as Chinese companies are highly competitive on costs and offer lower-priced model services.

However, market participants indicate that this does not mean Chinese venture capital has returned to a boom period, but rather that dollar fundraising has selectively restarted after three consecutive years of low levels.

Preqin data shows that in 2022, a total of 1,105 China-related funds raised $150 billion, while in 2025, only 97 funds raised $13.6 billion.

Currently, some large U.S. investors remain cautious due to restrictions on sensitive technology investments, while European and Middle Eastern funds show stronger interest. Investors are vying for more co-investment rights in the current "buyer’s market" and are demanding fund managers to invest more of their own capital. Meanwhile, a large amount of capital is competing for a limited number of high-confidence projects, particularly concentrated in the AI sector.