According to a report from GlobalData, a leading data and analytics company, venture capital funding in Chinese startups experienced a significant drop in 2022. The value of VC funding in the country saw a year-on-year decrease of 46.4%, while the volume of deals fell by 14.4%.

This decline can be attributed to China's regulatory crackdown on tech companies and the country's stringent zero-COVID policy, which has damaged investor confidence.

The report also found that the average size of VC funding deals in China decreased from $24.4 million in 2021 to $15.3 million in 2022. This decrease in average funding size is a reflection of the cautious nature of venture capital investors in the country. Despite this decline, China is still the top market in the Asia-Pacific region and is among the top four markets globally in terms of VC funding volume and value.

In comparison to other key global markets, the US, the UK and India also saw a decrease in VC funding value in 2022. The US saw a decline of 40.8%, the UK 24.3% and India 38.2%. This trend of decreasing VC funding value across the globe is indicative of the cautious nature of investors in the current economic climate.