Investment in startups is booming

Source: Xinhua | 2017-07-14

VENTURE capital investment in Chinese startups tripled in the second quarter, driven by an uptick in mega-deals and is expected to maintain that momentum in Q3, KPMG said in a report released yesterday.

The number of deals was relatively stable from the previous quarter at 79, but the amount tripled to US$10.7 billion.

This sharp rise was bolstered by two mega deals: ride-hailing platform Didi Chuxing raised US$5.5 billion and news aggregator Toutiao raised US$1 billion.

Companies offering both high-tech and simple-tech solutions drew increasing attention — a trend expected to continue through this quarter.

The hottest sectors are artificial intelligence, robotics, fintech, edtech and healthtech. Companies with simple business models also attracted significant investment.