NEWS COMMENTARY

U.S.-China transpacific VC investments drop by nearly 75% in 2019 as the tech ecosystem continues to polarize instead of globalize

Published:
January 15, 2020
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by Yuan-Sheng Yu
Very important

According to Rhodium Group, U.S. VC investments in China dropped to less than $4 billion in 2019 compared to $17.4 billion in 2018. While total VC funding in U.S. startups remains fairly flat in 2019 at $108 billion, Chinese startups saw their investments more than halved after a record-setting 2018 of $95 billion. While a drop was expected this year, missing U.S. funding was a major factor. The polarization of the two ecosystems has been building up since 2018 as the trade war unfolded. China is now looking at the regional innovation ecosystem instead, contributing significant capital to startups throughout Southeast Asia and India as it diverts its capital away from the U.S., leading to an even more clear divide between the two.

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