China’s venture capital (VC) market rebounded strongly in the first quarter (Q1) of 2026, with deal volume surging 80% and funding value rising 176% year-on-year (YoY), signaling renewed investor momentum. However, smaller average deal sizes kept its global value share limited, underscoring a persistent gap with the US, reveals GlobalData, a leading intelligence and productivity platform.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The upswing signals improving confidence among the investors and founders, alongside a gradual reopening of risk appetite after a more cautious phase.”
The volume growth makes it one of the fastest-growing major VC markets by transaction count. This surge lifted China’s position as a key global hub for venture activity, with the country accounting for 26% of total number of VC deals announced in the world during the quarter.
However, despite the strong growth in capital deployed, China represented 6% of global VC funding value, indicating that while deal-making intensity is high, the big-ticket deals remain more concentrated elsewhere.
Bose adds: “The divergence between China’s bigger share of deal volume and its smaller share of global value suggests a market skewed toward relatively smaller rounds compared to peer countries, particularly the US.”
During Q1 2026, the US saw the announcement of several billion-dollar VC deals including those valued more than $10 billion and a deal worth more than $100 billion as well. However, China did not see the announcement of any billion-dollar deal during the quarter. Resultantly, although China outpaced most markets in deal volume growth and delivered one of the strongest jumps in funding value, it still trailed the US in value concentration.
An analysis of GlobalData’s Financial Deals Database reveals that the US recorded only 5% growth in deal volume but saw deal value jump by 205%, capturing a dominant 83% share of global funding value versus China’s 6% in Q1 2026.
Bose concludes: “While China did not capture the comparable share of global value as the US, the acceleration in VC funding activity with rapid growth in deal volume and strong gains in funding value indicates improving sentiment. The next phase will test whether volume strength can translate into globally competitive, high-value scale-ups.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
