Several new companies within China are continuing to find more troubles when attempting to fund raise money. This could be further signs that China's economy is slowing down and venture capital may also be shrinking as well.
Fundraising slowed to $52.6 billion in the first half of 2019. At this rate, the full-year total is on track to fall more than 30% from 2018, when it reached nearly $174 billion.
The mainland stock market's weak performance last year has sapped the vigor of once-booming venture capital activity, especially among startups driving the expansion of the sharing economy. The U.S.-China trade war's drag on economic growth also has had an impact.
The venture capital data was compiled by 36Kr, a Chinese tech news portal that recently forged a partnership with Nikkei.
"In the business world, they say now is the winter for fundraising," 36Kr President Feng Dagang said. "While leading startups are receiving more funds, others are finding it difficult to survive."
The figures include money raised by major startups after their initial public offerings and investments by tech giants such as Alibaba Group Holding in their strategic subsidiaries.
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