Chinese investment firms are preparing at least 60 new dollar-denominated funds, targeting roughly $35 billion in total commitments — about 40 of them venture capital vehicles. Sequoia China, IDG Capital, Matrix Partners China, and FutureX Capital are among the firms currently raising or gearing up to launch.
The rebound is being driven mostly by AI, robotics, and a fresh cycle of tech IPOs. Some investors are treating Chinese AI as a hedge on their U.S. market bets, since Chinese models are cheaper to train and run. And with Zhipu and MiniMax heading to public markets, early-stage investors are once again eyeing exits.
None of that means China's VC scene is back to boomtown. Last year, only 97 China-related funds raised $13.6 billion — a far cry from the 1,105 funds and $150 billion raised in 2022. Big U.S. institutions are still retrenching, and it's unclear whether European or Middle Eastern money can fill the gap.