PE, VC investments in Q1 decline due to stricter regulation

Venture capital and private equity fundraising had an almost 75 percent year-on-year drop in the first quarter of this year; however, strong investment is still flowing into the internet, information technology and manufacturing industries, according to a recent report released by the ChinaVenture Institute.

According to the report, China's VC and PE markets in the first quarter this year experienced a 74.85 percent decline in the volume of fundraising, and a 54.82 percent drop in the number of deals, compared with the same period last year.

Guo Libo, president of the ChinaVenture Institute, said that the reason for the decline was partly due to tightened regulation and risk control measures. The State Council and related authorities have since last August issued regulations on the nation's VC and PE markets, as a guidance for the whole market's development in a healthy and scientific way.