Aurojyoti Bose, Lead Analyst at GlobalData, comments: “China’s early-2026 VC activity stands out for its breadth – deal activity accelerated meaningfully at a time when global volumes eased, while funding value more than tripled, indicating renewed confidence among investors. The massive surge in funding value signals a sharp rise in average deal sizes and underscores a clear improvement in risk appetite.”
An analysis of GlobalData’s Financial Deals Database reveals that the average size of VC deals announced in China during January-May 2026 stood at around $18 million, up from $8 million in January-May 2025.
China’s performance stood out compared to peer countries, particularly in terms of deal volume. By comparison, the US saw deal volume edge down by 2%, while India and the UK recorded declines of 9% and 1%, respectively. The divergence suggests that China’s deal flow was steady and broad enough to outpace multiple mature and emerging ecosystems at the same time.
China continued to remain the second biggest market for VC funding activity both in terms of deal volume and value. It accounted for 23% share of the total number of VC deals announced globally during January-May 2026 placing it slightly behind the US (30%) but well ahead of peer countries such as India (8%) and the UK (7%). Meanwhile, China’s share of global value during the same period stood at 7% far behind the US, which dominated at 81%, but ahead of the UK (3%) and India (1%).
Bose concludes: “China’s VC market entered 2026 with strengthened momentum on deal activity and delivering outsized value growth. Looking ahead, sustaining this trajectory will likely depend on continued investor confidence in high-growth sectors, and the availability of capital to convert rising deal flow into durable funding outcomes.”
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