The 2024 China Enterprise Venture Capital (CVC) Development Report has been released, showcasing 735 investments in early-stage tracks, with the majority of bets placed on intelligent manufacturing and AI.

Recently, the innovation and technology enterprise investment value data analysis platform of Entrepreneurship and Investment released the "2024 China Enterprise Venture Capital (CVC) Development Report" under its parent company.

The report shows that the number of newly registered CVC funds has been hovering at a low level, with the overall ratio remaining at 4.4%. In 2024, there were 193 newly registered CVC funds, down 41.7% from 2023, reaching a low level in the past decade. However, the ratio of CVC in private placement fund registration has remained stable, with the newly registered CVC fund number accounting for about 4.4% from 2021 to the present. Geographically, the areas with the most newly registered CVC funds are Zhejiang and Guangdong, where private enterprises are developed.

According to the report, CVC investment has entered an adjustment period and focuses on emerging sectors and early-stage investments. In 2024, there were 1027 investment events, down 42% from 2023. The investment focus is on the early stage, with a total of 735 investments, accounting for 71.6%, highlighting the attention on innovative fields. Meanwhile, CVC actively invests in smart manufacturing, artificial intelligence, and other sectors, with 192 and 134 investments respectively, and the largest total financing in the automotive transportation sector.

The report also shows that large investments account for nearly four-fifths and participate in half of the unicorn investments. In 2024, there were 83 large investment events with investment over US$100 million in the primary equity investment market, of which CVC participated in 31, accounting for 37.4%. In the field of artificial intelligence, there were seven large events with investment over US$100 million in 2024, with CVC all involved. In terms of unicorn growth, CVC has made significant contributions, with 20 new unicorns in China in 2024, of which 11 had CVC investment, accounting for 55%.

The report also shows that the merger and acquisition market is active, with IPO penetration over 30%. CVC plays an important role in the Chinese capital market, participating in 5.6% of the merger and acquisition events as a buyer, especially active in the merger and acquisition activities in smart manufacturing, traditional industries, and energy and power. Meanwhile, in the IPO market, 76 of the 228 IPO enterprises in 2024 had received CVC investment, with a penetration rate of 33.3% in 2024 IPO enterprises.