By the numbers: Chinese startups have raised just $26 billion so far in 2024, according to data provided to Axios by PitchBook. That's more than an 82% decline from the 2021 peak, and less than 50% of any year over the past decade.
Most of the blame is being pointed at Xi, including his capricious crackdowns on homegrown tech giants and IPOs (both at home and overseas) that eviscerated business certainty.
Much of the fall is indeed due to foreign investment drying up - a meager 19% of the money into 6.9% of the deals so far in 2024 - but that doesn't account for nearly all of the decline.
The U.S. government also has played a role, discouraging or outright banning investment in certain Chinese sectors. If a Silicon Valley venture capitalist doesn't know the next sector to be deemed vital to national security, how does that VC place bets?
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