VC/PE Report from January to November: Both the fundraising and investment markets have rebounded, with Jiangsu leading in the number of transactions.

This issue of "Beyond the J Curve" presents the VC/PE Market Report for January - November 2025. The number of fundraising activities increased by 16.73% year - on - year, and the number of investment deals rose by 30.33% year - on - year. The proportion of investments at the VC stage increased again. For more details, see below:

Key Findings

• Both the fundraising and investment markets heated up to varying degrees year - on - year. The number of fundraising activities increased by 16.73% year - on - year, and the number of investment deals rose by 30.33% year - on - year.
• The activity of institutions increased synchronously. 18.6% of institutions established 3 or more new funds.
• The number of newly established funds in Zhejiang Province exceeded 1,000. Jiaxing City led the country with a doubling - like advantage.
• In the investment market, the number of participating entities of leading institutions increased by 16.69% year - on - year. 17% of leading institutions' funds flowed into 27% of projects.
• The proportion of investment transactions at the VC stage increased year by year. In this period, both the number and scale of investments at the VC stage increased by 1%, and the average value dropped to 0.88 billion yuan per deal.
• In the exit market, 250 Chinese companies went public through IPO. The VC/PE penetration rate dropped to 54%; the book value of equity rebounded significantly, and the exit return rate dropped to 272%.

Part One: Analysis of VC/PE Market Fundraising

· Number of Newly Established Funds

From January to November 2025, a total of 4,871 new funds were established in the Chinese VC/PE market, an increase of 688 compared with the same period last year, a year - on - year increase of 16.73%; the total fundraising scale reached 229 billion yuan, a year - on - year increase of 8.09%.

In this period, a total of 2,611 institutions participated in the establishment of funds, a 4.36% increase compared with 2,502 in the same period last year. Among them, 62% of institutions established 1 fund, 19.4% of institutions completed the establishment of 2 new funds, and 18.6% of institutions completed the establishment of 3 or more new funds. In the same period last year, the proportion of institutions establishing three or more funds was 12.7%. The activity of institutions increased significantly year - on - year.

Figure 1: Number of Newly Established Funds from January - November 2021 - 2025

Figure 2: Distribution of the Number of Institutions Establishing Different Numbers of Funds from January - November 2025

· Regional Situation of New Fund Establishment

From January to November 2025, a total of 31 provincial - level administrative regions (including Hong Kong, Macao, and Taiwan) established new funds. Among them, Zhejiang Province ranked first with 1,060 newly established funds. Jiangsu Province and Guangdong Province followed closely with 764 and 529 newly established funds respectively. The number of newly established funds in Anhui Province and Hubei Province decreased year - on - year.

Figure 3: Top 15 Provinces in Terms of Newly Established Funds from January - November 2025

Figure 4: Top 15 Cities in Terms of Newly Established Funds from January - November 2025

· Overview of Sub - segmented LP Contributions

From January to November 2025, compared with the semi - annual data, corporate investors as LPs increased the number of investment times in the second half of the year. The proportion of their contributions increased from 31.3% in the first half of the year to 34%, while the proportion of contributions from state - owned platforms dropped from 36.3% to 32.2%. Compared with the same period last year, the number of investment times of banks as LPs increased by 84%, that of government agencies increased by 73.7%, and those of insurance funds and VC/PE institutions also increased by 20.5% and 19.8% respectively. A new pattern of contributions has emerged in the market, with "industrial capital leading, financial capital exerting force, and state - owned capital precisely regulating".

Figure 5: Market Share of the Number of Investment Times of Different Types of LPs from January - November 2025

Table 1: Overview of the Top 5 LP Entities in Terms of Investment Times from January - November 2025

From January to November 2025, the market share of the total contributions of corporate investors as LPs increased from 10.3% in the first half of the year to 13%. Corporate capital's willingness to allocate funds to fund investments continued to increase. In terms of the year - on - year growth rate of various contributing entities, VC/PE investment institutions as contributors performed the most prominently. The amount of their contributions increased significantly by 60.8% year - on - year. The willingness of institutions to collaborate on contributions and strategic layout increased significantly, which also reflected the industry's confidence restoration in the future development from the side. In contrast, the pace of contributions from state - owned platforms, guidance funds, and FOFs slowed down, which may be related to the phased capital investment plan and the stricter project screening criteria.

Figure 6: Market Share of the Amount of Contributions of Different Types of LPs from January - November 2025

Table 2: Overview of the Top 5 LP Entities in Terms of Contribution Amount from January - November 2025

· Situation of New Fund Establishment and Fundraising Completion

In January 2025, in order to promote the high - quality development of China's artificial intelligence industry, the National Artificial Intelligence Industry Investment Fund was officially established under the leadership of the Ministry of Industry and Information Technology and the Ministry of Finance. Following the principles of marketization, rule of law, and specialization, it serves the national strategy through equity investment. The total scale of the fund is 60.06 billion yuan RMB, and it is located in Xuhui District, Shanghai. The fund is jointly funded by Guozhitou (Shanghai) Private Equity Fund Management Co., Ltd. and the Third - phase National Integrated Circuit Industry Fund. The fund has a term of 13 years and will carry out investment layout around the entire artificial intelligence industry chain, covering all links such as computing power, algorithms, data, and enabling applications. At the same time, embodied intelligence is also a highly valued direction.

Table 3: Key Cases of RMB Fund Raising in the Chinese VC/PE Market from January - November 2025

In April 2025, the Hubei Gaolu Development Investment Fund Partnership (Limited Partnership), jointly launched by CICC Capital Management Co., Ltd. as the manager and Hubei Communications Investment Group Co., Ltd., completed its fundraising and was registered with the Asset Management Association of China. The total scale of the fund is 30 billion yuan RMB. According to the fund's investment strategy, the Hubei Expressway Development Fund will invest all its funds in sub - funds, with key layout areas including: special sub - funds for the construction of Hubei expressway projects; sub - funds for industries related to or in the transformation and upgrading of Hubei Communications Investment Group, such as transportation technology R & D, green and low - carbon transportation, modern intelligent logistics, intelligent construction, hydrogen energy, low - altitude economy, and artificial intelligence, as well as key industrial areas that are in line with Hubei's "51020" modern industrial system development strategy and "61020" scientific and technological innovation achievement system.

Table 4: Key Cases of Completed RMB Fundraising in the Chinese VC/PE Market from January - November 2025

In February 2025, the tenth - phase fund of the opportunistic real estate fund series, the core of PAG's real estate business, successfully completed its fundraising, with a total fundraising amount of 4 billion US dollars, exceeding its fundraising target of 3.5 billion US dollars. The investors mainly come from pension funds and sovereign wealth funds in North America, Europe, the Asia - Pacific region, and the Middle East. The fund mainly focuses on developed markets in the Asia - Pacific region and is dedicated to investment opportunities in the real estate and debt fields.

Table 5: Key Cases of Completed Foreign - Currency Fundraising in the Chinese VC/PE Market from January - November 2025

Part Two: Analysis of VC/PE Market Investment

· Investment Frequency and Investment Scale

From January to November 2025, the number of investment cases was 10,007, a year - on - year increase of 30.33%; the investment scale was 119.3023 billion yuan, a year - on - year increase of 31.54%; the average investment value was 119 million yuan, almost the same as the same period last year. Overall, the investment market performed well from January to November 2025, showing an obvious recovery trend.

Figure 7: Investment Situation in the Chinese VC/PE Market from January - November 2025