Analysis of the Impact of Covid-19 on Chinese Venture Capital Industry

Abstract

The Covid-19 pandemic has hit various industries across the world at an extremely fast pace since its emergence. This research uses real sample data, covering the status quo and attribution analysis of China's venture capital industry after Covid-19. The findings reveal that there has been a decline in early-stage investments, while investments in rounds A to C have increased since 2019. The growth rate of venture capital projects after Covid-19 has been concentrated in industries such as advanced manufacturing, healthcare, traditional manufacturing, business services, and meta-industry. Specific subsectors like biotechnology and pharmaceuticals, as well as integrated circuits, have experienced significant increases in venture capital activity. Government policies have also played a role in shaping the industry, with regulations encouraging early and small investments in technology. Additionally, the "domestic substitution" strategy has influenced venture capital investment in advanced manufacturing. These findings indicate that China's venture capital is greatly affected by policy, which is reflected in the investment industry trend, amount and rounds in recent years.