Chinese venture capital firms are accelerating fundraising for new vehicles after three years of record weakness, seeking to capture renewed investor interest in the country’s technology sector, the Financial Times reported.
Data from Asante Capital shows that at least 60 new U.S. dollar funds are currently targeting about $35 billion in aggregate commitments. Around 40 of those funds are venture capital vehicles.
Fund managers return to the market
The report said HSG, IDG Capital, Matrix Partners China and Future Capital are marketing new funds or preparing to begin fundraising. ZhenFund and Qiming Venture Partners have already completed fundraising recently.
Tech momentum brings investors back
Investor attention has been drawn back to Chinese technology by successful listings involving companies such as Zhipu and MiniMax, along with progress made by Moonshot AI, DeepSeek and firms in robotics.
Some investors see exposure to Chinese AI as a hedge against concentrated bets on U.S. markets. The report said that view is tied to the intense cost competition among Chinese companies and their ability to offer lower-priced model services.
Recovery remains selective, not broad-based
Even so, market participants said this does not mean Chinese venture capital has returned to a boom period. They described the shift instead as a selective restart in U.S. dollar fundraising after three consecutive years at low levels.
Preqin data cited in the report shows that 1,105 China-related funds raised $150 billion in 2022. In 2025, only 97 funds raised $13.6 billion.
Investor mix and deal terms are shifting
Some large U.S. investors are still staying on the sidelines because of restrictions tied to sensitive technology investment, while capital from Europe and the Middle East has shown stronger interest.
In what the report described as a buyer’s market, investors are pushing for more co-investment rights and asking fund managers to commit more of their own capital. At the same time, large pools of money are competing for a limited number of high-conviction projects, especially in AI.