China’s funding woes continue as gov’t crackdowns scare off investors

The funding troubles of China-based startups look like they’re here to stay, with the country seeing a “decline in venture capital deals,” reported Bloomberg.

Investors have become more selective, and the government’s crackdown on tech giants, along with Covid-19 and other political issues, is seen as a major factor for this cold outlook. JPMorgan also recently classified Chinese internet firms as “uninvestable.”

China is now seeing slower economic growth as it boosts infrastructure spending and looks at tax cuts.

While a near-term relationship with Western venture capital doesn’t look good for China, Bao Fan, founder of China Renaissance Holdings, told Bloomberg that China can expect limited partners (LPs) “from emerging markets.”

“We could act as a bridge and help export China’s know-how, expertise, and talents to emerging markets and help LPs there to develop their digital economy,” Fan said in the report.

See also: How China has been clamping down on big tech empires