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VC investment hits record high in 2008

Published: 25 Feb 2009 18:36:36 PST

Feb. 25, 2009 (China Knowledge) - China mainland saw venture capital (VC) investment surge 33.3% year on year to US$7.31 billion and reach a record high last year, despite the economic downturn, according to the latest report by market researcher Zero2IPO Group.

In 2008, 81 domestic and overseas VC companies raised capital in 116 funds in China mainland, twice the number in 2007.

The IT industry attracted 36% of the total VC investment, more than any other sector. The retail sector accounted for 22%, the service sector 18%, clean energy 9%, and biomedical science 7%.

The extremely active RMB funds obtained a total investment of US$1.394 billion, representing 33.1% of the total VC investment, according to the report.

Only 43 VC projects in China regained money through the IPO market, with the number plunging 57% compared with 2007, as a result of global financial crisis.

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