Data shows China-based startups had a bad year

Illustration: Aïda Amer/Axios

Last year wasn't a great year for money flowing into China-based venture capital, or for Chinese startup exits.

Why it matters: Distributions are important to keep limited partners backing Chinese funds, and thus, backing startups.

By the numbers: While the second half of the year was much stronger, 2022's total exit value was $157.7 billion — less than half of 2021's record $289.2 billion, per PitchBook.

  • 2022 only had $22 billion in venture-backed exits with participation from foreign investors, a huge dip from 2021's 164.7 billion, and the lowest amount since 2016. This translated to only 17 exits, down from 56 in 2021.

Yes, but: China's IPO market has remained stronger than the rest of the world, with 201 public listings in 2022 (131 taking place in the second half).

  • This is also important because almost all exit value since 2019 has come from public listings.

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