Investment activity in China’s tech sector has seen a massive drop in the past four months since the coronavirus outbreak has emerged from the city of Wuhan. The venture capital market has been suffering a tremendous impact on its existing drop in activity.
Tech-based industries, including FinTech, artificial intelligence, and web-based services have seen a 31.3 percent decline from 173.5 billion to 119.1 billion in Q1, in the same period as last year. Investment deals have also seen a dip, from 1,143 to 634 in the same period, resulting in a 44.5 percent decline.
According to a report by Itjuzi.com, In 2019, 3161 startup companies were founded, while in Q1 of 2020, less than 100 startups were founded, which was around 3 percent of companies founded last year. Of those 100 startups, many were founded in January before the COVID-19 outbreak. The report further suggested that startups in artificial intelligence and e-commerce continue to attract funding, as shown in the first quarter.
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