2025 Annual VC/PE Report: The fundraising and investment market is steadily rising, and transactions are returning to the average of the past decade.

This issue of "Beyond the J Curve" presents the 2025 VC/PE Market Report. Both the number and amount of fundraising and investment have increased by about 30% year-on-year. The fundraising pace of industrial capital has accelerated, while leading institutions remain cautious in their investments. For more details, see below:

Key Findings

• In 2025, the fundraising and investment markets have warmed up to varying degrees year-on-year. The number and scale of investments and funds have both increased by about 30% year-on-year.
• The activity of institutions has also increased. 19.4% of institutions have established 3 or more funds.
• The number of funds in each province is generally higher than the same period last year. The year-on-year growth in areas such as Jiaxing, Jiujiang, and Ningbo is even more rapid.
• In the investment market, the number of investments made by leading institutions has remained stable, and the coverage rate of investment amounts is still at a low level in recent years.
• Jiangsu has led the country in the number of investment transactions for many consecutive years. Shanghai has continued to hold the top position as the most attractive city for investment. Beijing has highlighted its scale advantage with the concentrated distribution of large - scale transaction cases.
• In the exit market, 294 Chinese enterprises have achieved IPOs, a year-on-year increase of nearly 30%. The proportion of overseas IPOs has reached 61%.
• The book value of equity has rebounded significantly, and the exit return rate has dropped to 289%.

Part One: Analysis of Fundraising in the VC/PE Market

· Number of Newly Established Funds

In 2025, a total of 6,127 new funds were established in the Chinese VC/PE market, an increase of 1,293 compared with the same period last year, a year-on-year increase of 27%. The total fundraising scale reached 3.086 trillion yuan, a year-on-year increase of 26%.

A total of 3,180 institutions participated in the establishment of funds this period, an increase of 13.01% compared with 2,814 institutions in the same period last year. Among them, 62% of the institutions established 1 fund, 18.6% of the institutions established 2 funds, and 19.4% of the institutions established 3 or more funds. In the same period last year, the proportion of institutions establishing 3 or more funds was 15%. The activity of institutions has increased significantly year-on-year.

Figure 1: Overview of the number and scale of newly established funds from 2016 - 2025

Figure 2: Distribution of the number of institutions establishing different numbers of funds in 2025

· Regional Situation of Newly Established Funds

In 2025, a total of 32 provincial - level administrative regions (including Hong Kong, Macao, and Taiwan) established new funds. Among them, Zhejiang Province led with 1,367 newly established funds. Jiangsu Province and Guangdong Province followed closely with 967 and 644 newly established funds respectively. The number of funds in Zhejiang, Jiangsu, Jiangxi, and Shanghai increased significantly year-on-year, while the number in Anhui Province and Hubei Province decreased slightly year-on-year.

Figure 3: Top 15 regions (provincial - level) for newly established funds in 2025

Figure 4: Top 15 regions (municipal - level) for newly established funds in 2025

· Overview of Sub - segment LP Contributions

In 2025, corporate investors were the most active LPs, accounting for 37.3% of the investment times. State - owned platforms accounted for 31.1%, slightly less. Compared with the same period last year, the number of investments made by LPs of types such as VC/PE investment institutions, corporate investors, and mother funds has increased to varying degrees. After the relaxation of the AIC equity investment pilot in September 2024, the market share of AIC funds has steadily increased. The overall investment enthusiasm of bank - affiliated LPs has increased, with the number of investments increasing by 21.7% year-on-year. AIC is an important driving force. A new investment pattern of "led by industrial capital, driven by financial capital, and precisely regulated by state - owned capital" has been formed in the market.

Figure 5: Overview of the market share of the number of investments made by different types of LPs in 2025

Table 1: Overview of the top 5 LP entities in terms of the number of investments in 2025

In terms of the investment amount in 2025, state - owned platforms were still the main force in the market, accounting for 41.8% of the investment amount, a year-on-year decrease of 8.3%. The market share of guidance funds was 17.6%, and the investment amount of corporate investors as LPs increased to 12.9%, a year-on-year increase of 24.7%. The willingness of corporate capital to allocate funds for investment has continued to increase. The investment amount of government agencies has increased nearly three - fold year-on-year, and the investment amount of VC/PE investment institutions has increased by nearly 70% year-on-year, slightly less. The current investment pattern reflects the structural transformation of the primary market: state - owned capital has shifted from scale expansion to precise empowerment, focusing on strategic fields such as hard technology to play a ballast role; corporate capital has shifted from financial allocation to ecological binding, with leading enterprises strengthening industrial chain collaboration through CVC; the increase in VC/PE reflects the recovery of the industry and the restoration of the confidence of market - oriented capital.

Figure 6: Overview of the market share of investment amounts of different types of LPs in 2025

Table 2: Overview of the top 5 LP entities in terms of investment amount in 2025

· Fund Establishment and Fundraising Completion

On December 26, 2025, the National Venture Capital Guidance Fund was launched in Beijing. The guidance fund was established with the promotion of the National Development and Reform Commission and the Ministry of Finance, playing the leading and driving role of central funds to attract social capital to participate. The investment direction of the National Venture Capital Guidance Fund is fully in line with the national medium - and long - term science and technology development plan, clearly targeting seven major fields: integrated circuits, artificial intelligence, biomedicine, quantum technology, 6G, aerospace, and future energy. Among them, biomedicine, as the core track in the bio - manufacturing field, is included in the first batch of investment priorities together with artificial intelligence, quantum technology, and 6G. As of the release date of this report, the guidance fund has invested in the establishment of 3 regional funds: the "Beijing - Tianjin - Hebei Venture Capital Guidance Fund", the "Yangtze River Delta Venture Capital Guidance Fund", and the "Guangdong - Hong Kong - Macao Greater Bay Area Venture Capital Guidance Fund". These 3 regional funds have signed a number of intended sub - funds and direct investment projects in fields such as integrated circuits, quantum technology, biomedicine, brain - computer interfaces, and aerospace. The guidance fund has a 20 - year term, including a 10 - year investment period and a 10 - year exit period.

Table 3: Key cases of RMB funds starting to raise in the Chinese VC/PE market in 2025

In April 2025, the Hubei Gaolu Development Investment Fund Partnership (Limited Partnership), jointly initiated 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. According to the fund's investment strategy, the Hubei Expressway Development Fund will invest all its funds in sub - funds, focusing on areas such as special sub - funds for the construction of expressway projects in Hubei Province; sub - funds for industries related to or for the transformation and upgrading of Hubei Communications Investment Group, including transportation technology R & D, green and low - carbon transportation, modern intelligent logistics, intelligent construction, hydrogen energy, low - altitude economy, artificial intelligence, and other fields, as well as key industrial fields that are in line with Hubei Province's "51020" modern industrial system development strategy and "61020" scientific and technological innovation achievement system.

Table 4: Key cases of RMB funds completing fundraising in the Chinese VC/PE market in 2025

In February 2025, the tenth fund in the opportunistic real estate fund series, the core of the real estate business of PAG Group, 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 are mainly pension funds and sovereign wealth funds from North America, Europe, the Asia - Pacific region, and the Middle East. The fund mainly focuses on developed markets in the Asia - Pacific region, concentrating on investment opportunities in the real estate and debt fields.

Table 5: Key cases of foreign - currency funds completing fundraising in the Chinese VC/PE market in 2025

Part Two: Analysis of Investment in the VC/PE Market

· Investment Frequency and Investment Scale

In 2025, the number of investment cases was 11,015, a year-on-year increase of 30.6%. The investment scale was 1.33968 trillion yuan, a year-on-year increase of 23.43%. The average investment amount was 122 million yuan, a slight decline compared with last year. Overall, the investment market has heated up strongly in 2025. The number of investments has returned to over 10,000. Both the number and amount of investment transactions in this period are close to the average level of investment in the past decade.