Top Agency for Raise Funding in China

Cost-efficient Solution to raise funds in China. We help Western startups to pitch Chinese VC, PE and Business angels, and private investors in China. 

China was a golden age for start-up funding before 2020. Chinese start-up’s funding is set to break records in 2018, according to TechCrunch. Chinese technology startups raised $ 43.4 billion in the first half of the year, up from $ 58.8 billion in 2017.

Startup and Fundraising Trends in China for 2024

China’s startup ecosystem is highly dynamic and continues to evolve, driven by technological advancements, changing consumer preferences, and government policies. As we head into 2024, several key trends are shaping the startup landscape and fundraising activities in China. Here are seven notable trends:

1. Increased Focus on Green and Clean Tech Startups

With China’s commitment to achieving carbon neutrality by 2060, there’s a growing emphasis on startups in the green and clean technology sectors. Investors are keen on companies that offer innovative solutions in renewable energy, electric vehicles, battery technology, and emissions reduction. Fundraising is particularly vibrant in these areas as both private and government funds are directed toward sustainable development goals.

2. Rise of AI and Automation

Artificial intelligence (AI) continues to be a hotbed for investment. Startups that integrate AI into healthcare, manufacturing, automotive, and financial services are seeing significant interest. The Chinese government’s support for AI development as a part of its national strategy ensures continued funding and resources for startups specializing in machine learning, deep learning, and automated systems.

3. Healthtech and Biotech Innovations

The healthtech and biotech sectors are experiencing rapid growth, partly accelerated by the COVID-19 pandemic. Startups focusing on telemedicine, biotechnology, pharmaceuticals, and personalized healthcare solutions are particularly attractive to investors. The aging population in China further catalyzes the demand for healthcare innovation, making this a promising area for fundraising.

4. Expansion of Consumer Tech

Consumer technology remains a robust sector for Chinese startups, with a strong focus on mobile applications, e-commerce, and consumer electronics. The growth of 5G technology has opened up new opportunities for startups to innovate in areas such as streaming services, gaming, and virtual/augmented reality applications.

5. Cross-Border E-commerce Growth

As global trade barriers are renegotiated and digital platforms become more sophisticated, startups that facilitate cross-border e-commerce are gaining traction. These include platforms that provide logistics solutions, payment gateways, and local compliance services, making it easier for Chinese products to reach international markets and vice versa.

6. Fintech Innovations

Fintech continues to be a sector with substantial growth and investment, driven by China’s large unbanked population and the rise of digital banking technologies. Startups that offer solutions in payments, insurtech, wealth management, and blockchain are particularly poised for growth. Regulatory adjustments are also expected to open up new opportunities for innovation in financial services.

7. Edtech’s Continued Evolution

The education technology sector is set to grow further, despite recent regulatory crackdowns on private tutoring. Startups focusing on vocational training, professional development, and extracurricular activities not covered by the crackdown are seeing increased interest from investors. Technologies that support remote learning, such as AI-driven personalized learning and virtual classrooms, continue to attract significant funding.

USNEWS Chinese startups reportedly attracted 47 percent of all global venture capital

than starting a start-up. It is therefore not taken into account in the number of Tech in Asia startups.

Chinese start-ups earned 47% of global venture capital funds in the last three months ended June, compared with 35% in the United States and Canada, according to a Crunchbase report. The South China Morning Post (SCMP) wrote that Crunchbase may have underestimated the volume of fundraising in Asia because it only monitors the relatively large rounds.

Venture Capital Companies Invest Billions of Dollars in Artificial Intelligence and Blockchain Lines, Attracted by a Potential Market of 1.4 Billion Consumers Connecting and Expanding, From Entertainment to Health Care said SCMP.

As of 2024, the startup ecosystem in China continues to thrive with a focus on diverse sectors ranging from artificial intelligence to e-commerce and healthcare. Here’s a look at some of the top startups in China, highlighting their key data, funds raised, and valuations:

1. SenseTime – Specializing in AI and computer vision, this Beijing-based company has secured $2.64 billion across nine funding rounds, supported by notable investors like Alibaba Group and SoftBank Vision Fund.
2. Didi – Known for its ride-sharing and transportation services, Didi has raised an impressive $23.25 billion in funding, making it one of the largest players in its sector.
3. Yuanfudao – Focused on e-learning, Yuanfudao has gathered significant funding of $4.05 billion, serving as a major platform for educational technology in China.
4. WeRide – Operating in the autonomous driving space, WeRide has attracted $1.1 billion in funding, demonstrating significant growth in the drone and robotaxi sectors.
5. Zuoyebang – This educational platform has secured a total of $2.9 billion, offering online classes and courses primarily for school children.
6. WeDoctor – Providing a range of healthcare services via an online platform, WeDoctor has reached a valuation over $7 billion with total funding of $1.4 billion.
7. Pony.ai – With a focus on autonomous vehicle technology, Pony.ai has achieved a valuation of $8.5 billion.
8. Alibaba Cloud – As a leader in cloud computing and data management, Alibaba Cloud has raised $1.2 billion.
9. Nice Tuan – An e-commerce platform specializing in fresh goods, has raised $1.3 billion.
10. Mobvoi – Innovating in speech recognition and AI, has secured funding of $252.76 million.

Process

To attract Chinese investment, you must first calculate all the necessary investments, risks, and potential profits – if not, how will you explain to the investor how worthwhile this idea is?

You need to create a business plan for Chinese investors and a pitch desk to introduce your concept.

1. Analyze all expected revenues and expenses. Is the profit expected here (very important in China)?
2. Have you considered the cost of your time?
3. Have the bottlenecks been taken into account?

Again, check carefully all your calculations, then again, and have someone count again. If the numbers remain unchanged, you can move on with confidence and start looking for investors.
The agency that helps to raise funds is called an ‘accelerator’, and what you’re looking for in the individual realm is called an advisor/mentor.

As of 2024, the venture capital landscape in China is dominated by a mix of established and rising firms focusing on a variety of sectors from technology and healthcare to green technology and consumer internet. Here are some of the top venture capital firms in China:

List of VC in China 2024

1. Sequoia Capital China – Known for significant investments in technology and consumer sectors, Sequoia Capital China is a major player in the Chinese VC space.
2. Matrix Partners China – Focuses on early-stage investments, particularly in tech and healthcare.
3. Qiming Venture Partners – Specializes in healthcare and TMT, playing a pivotal role at early investment stages.
4. Tiger Global Management – This firm invests across multiple stages and is known for its involvement in major technology projects.
5. Shunwei Capital – Focuses on mobile internet and deep tech startups.
6. Hillhouse Capital Group – Invests broadly in technology, healthcare, and consumer services.
7. SAIF Partners – Active in technology, media, and telecommunications, SAIF Partners is known for supporting companies at various growth stages.
8. Lightspeed China Partners – Targets early and growth-stage investments in sectors like green tech, hard tech, and consumer fields.
9. GGV Capital – A global venture firm that invests across the US and China, focusing on multi-stage investments.
10. Kleiner Perkins – Although based in the US, it has significant activities in China, focusing on technology and healthcare investments.

You can apply to our Agency

Startup fundraising in China

• We can take a bit of equity (depend on the project)
• We can provide to you resources, coaching, Marketing Support (start at 2000$)
• Prepare the Buzz and PR operation (start at 8000$)
• We can connect you with Chinese investors – Pitch Them (5000$) 

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The 2026 market reality: what the data shows

China’s capital market is moving fast. In Q1 2026, Chinese startups raised an estimated US$16.5 billion across 2,865 equity financing events, representing 60% of all Asian startup funding for that period, according to Abovea China Startup Statistics. State-owned capital participated in 48.76% of those financing events, which reflects how deeply government policy now shapes private capital flows. In December 2025, China’s State Council launched the National Venture Capital Guidance Fund, seeded with CNY 100 billion from central government capital and designed to mobilise CNY 1 trillion over a 20-year lifespan, as reported by Xinhua. For foreign brands and companies looking to raise funding in China, these shifts create both access and complexity in equal measure.

How capital flows in China: structures foreign companies must understand

Raising capital in China is not the same as raising capital in the US or Europe. The regulatory framework is specific, and the entry points for foreign entities are limited unless you know which doors exist.

The main structures available to foreign companies include the WFOE Private Fund Management model, the QDLP (Qualified Domestic Limited Partners) program, and Panda bonds. Each route has different eligibility criteria, approval timelines, and scale limits.

Since 2016, foreign fund management companies have been permitted to participate in private equity investments in China using domestically sourced RMB. However, foreign institutions generally cannot raise funds directly from Chinese domestic investors unless they fall under specific exceptions managed by the China Securities Regulatory Commission (CSRC) or are registered with the Asset Management Association of China (AMAC).

Panda bonds have become an increasingly used route for foreign entities. CapitaLand Investment completed the first public offering of a foreign-issued sustainability-linked Panda bond in 2025, raising RMB 1.2 billion. The Arab Energy Fund received approval from Chinese regulators in January 2026 to raise up to CNY 10 billion via Panda bonds over two years. These examples show that the Panda bond market is open and growing, but it requires formal regulatory approval and onshore legal infrastructure.

In July 2025, seven major PRC authorities jointly issued policy measures to ease onshore reinvestment by foreign-invested enterprises (FIEs). The rules simplified procedures for foreign shareholder loans and Panda bonds needed for reinvestment by eligible FIEs. Under China’s 2025 Action Plan for Stabilizing Foreign Investment, foreign-invested investment companies are now allowed to access domestic loans for equity investment, a significant change in access rules.

What does this mean in practice? A foreign brand that already has a legal entity in China (a WFOE or joint venture) is in a much stronger position to raise local capital than one operating purely from offshore. Establishing onshore presence first is not optional. It is the baseline. An agency that understands both the regulatory environment and the local investor landscape can save months of delays and mis-targeted outreach.

What investors in China actually fund: sectors, signals, and expectations

Understanding what Chinese investors are funding right now matters as much as understanding the legal structure. Pitching the wrong story to the wrong investor wastes time and damages credibility.

In Q1 2026, approximately 70% of China’s startup investments went to hard technology, with advanced manufacturing capturing the largest share of individual investment events. AI is the dominant sector: China’s AI sector contained 69 unicorn companies with a combined valuation of US$638 billion, and private AI investment in China reached US$12.4 billion in 2025. State-guided capital is explicitly focused on “investing early, investing small, investing long-term, and investing in hard technology,” per the mandate of the National Venture Capital Guidance Fund.

For foreign consumer brands, this means the domestic VC market is not always the right audience. A luxury cosmetics brand or a food company will find more relevant capital through strategic partnerships, joint ventures with local conglomerates, or private equity funds focused on consumer sectors. These exist, but they require targeted introductions and a credible China market story.

Starbucks and Burger King both made headlines in 2025 by teaming up with private capital to accelerate growth across their China operations. Both deals followed a pattern: a foreign brand with proven China market traction, a credible local management structure, and a clear growth narrative that spoke to Chinese LP priorities. The funding did not happen because the brand was well-known globally. It happened because the brand had built local proof points that gave investors confidence in the China-specific opportunity.

A funding agency operating in China will typically help a foreign brand build this story before any investor presentation takes place. That includes market sizing with local data, competitive positioning vs. domestic players, channel strategy (Tmall, JD, WeChat), and a realistic timeline to profitability. Without this groundwork, investor meetings rarely convert.

The investor base itself is also shifting. Government guidance funds now participate in nearly half of all financing events in China. That means relationships with government-linked funds, state-backed accelerators, and policy-aligned investors matter more than they did in 2021 or 2022. A good local agency has these relationships and knows how to position a foreign brand within the right investment thesis.

What changed between 2024 and 2026

The China capital market in 2026 looks quite different from 2024. Total VC funding in China in 2024 was US$35.2 billion, down 21.7% from US$45 billion in 2023. That contraction forced a reset. Investors became more selective, deal timelines lengthened, and due diligence requirements became stricter.

From January to November 2025, the market reversed direction. A total of 4,871 new funds were established in the Chinese VC and PE market, up 16.73% year-on-year. Total fundraising reached CNY 2.29 trillion, up 8.09%. Investment events rose 30.33%, with total investment scale reaching CNY 1.19 trillion, up 31.54%, according to data cited by 36Kr.

The CSRC also updated its 2025 legislative agenda to include new Securities and Fund Investment Consulting Regulations, which tighten standards for who can advise on investment decisions in China. This matters for foreign brands hiring local advisors. Working with an unregistered or non-compliant advisor creates legal risk. Any agency you engage in China for fundraising support should operate within the CSRC and AMAC compliance framework.

The 15th Five-Year Plan (2026-2030) will shape investment priorities for the next five years. Early signals point to continued emphasis on semiconductors, AI, clean energy, and advanced manufacturing. Consumer sectors are not excluded, but they receive less policy-driven capital. Foreign consumer brands need to build their own investor relationships rather than relying on policy tailwinds.

Frequently asked questions

Can a foreign company raise money directly from Chinese investors?

Yes, but not without onshore infrastructure. Foreign institutions cannot directly raise funds from Chinese domestic investors unless specific exceptions apply under CSRC or AMAC rules. The most common routes are through a WFOE that holds a Private Fund Management license, through the QDLP program (which allows foreign managers to raise RMB from qualified domestic investors for offshore use), or through Panda bonds for debt financing. Each route requires regulatory approval and takes time to set up. Foreign brands without an existing legal entity in China should treat that as the first step, not an afterthought. An agency familiar with both the legal and market sides of China capital can identify which route fits your situation and timeline.

What do Chinese investors look for in a foreign brand before funding?

Chinese investors, whether VC funds, PE funds, or government-backed vehicles, look for proof that the brand works in China specifically. Global brand recognition helps but does not replace local traction. Investors expect a credible China management team, a clear channel strategy (covering platforms like Tmall, JD, WeChat, and Douyin), a realistic customer acquisition cost model, and ideally some existing China revenue or pilot data. Foreign brands that have done brand-building work in China before approaching investors convert at much higher rates. If you have run campaigns on Xiaohongshu, built a WeChat following, or run a Tmall flagship store, those numbers become part of your investor deck. Brands that arrive with only global metrics rarely close a deal.

How long does it take to raise funding in China as a foreign company?

Timelines vary by deal type and structure, but foreign brands should plan for 12 to 24 months from initial conversations to close. Regulatory approvals add time. AMAC registration for a fund manager, for example, can take 3 to 6 months. CSRC approvals for Panda bonds typically take longer. Strategic investment rounds from a Chinese conglomerate or PE fund can move faster if the investor already knows the brand and the deal is bilateral. The most common mistake foreign companies make is underestimating the time required and starting the process too late. Beginning the process 18 months before you need capital gives you room to adjust the approach if early conversations do not convert. An agency with existing investor relationships can compress some of these timelines through warm introductions.

What does a fundraising agency in China actually do?

A fundraising agency in China does several things that a foreign company cannot easily do on its own. It builds the China investment narrative, translating your global story into terms that resonate with local investors and their specific priorities. It identifies the right investor categories for your sector and stage, whether that is government guidance funds, strategic corporate investors, PE funds, or family offices. It makes introductions through existing relationships, which matter enormously in a market where trust is built through networks. It helps navigate regulatory requirements, including entity setup, compliance with CSRC rules, and due diligence documentation in Chinese. It also manages the investor relations process through to close. Most importantly, a good agency filters out investors who are not a genuine fit, which saves time and protects your brand reputation in a market where word travels fast.

How to move forward

If you are a foreign brand looking to raise funding in China, start with your digital presence. Investors will research you on Baidu, WeChat, and Chinese social platforms before any meeting. If they cannot find you, or if what they find does not match your pitch, the deal stalls. Building a credible Chinese digital footprint is not a cosmetic exercise. It is due diligence preparation.

Second, get your legal entity in order. An onshore WFOE or joint venture is the baseline for most funding routes. Without it, your options narrow significantly.

Third, build your China brand story with local data. Run campaigns on Xiaohongshu or Douyin to generate real engagement metrics. These numbers belong in your investor deck.

Fourth, work with a China-based agency that has both regulatory knowledge and investor relationships. The two skill sets rarely sit in the same place, but you need both.

If you want to discuss your specific situation, contact the team at seoagencychina.com/contact-us for an initial assessment.

Marcus Zhan is a China marketing specialist based in Shanghai. He covers digital marketing, consumer trends, and brand strategy for the Chinese market. Connect with him on LinkedIn for China market insights.

Sources: Abovea China Startup Statistics, Q1 2026 data | https://abovea.tech/china-startup-statistics/ | Xinhua, “China unveils national venture capital guidance fund to boost innovation,” December 2025 | https://english.news.cn/20251226/8d273ae5572747ec852a3aa1ad2990c6/c.html | 36Kr English, “2025 Review: 16 Key Events Shifting the Course of China’s Venture Capital Industry” | https://eu.36kr.com/en/p/3616315848967172 | China Briefing, “China’s New Rules for Private Funds” | https://www.china-briefing.com/news/chinas-new-rules-for-private-funds-implications-for-chinese-and-foreign-fund-managers/ | English.gov.cn, “2025 Action Plan for Stabilizing Foreign Investment” | https://english.www.gov.cn/news/202502/22/content_WS67b9044dc6d0868f4e8efdff.html