China's startup funding slump hits early-stage businesses

Fundraising fell 36% in 2019 as investors shunned unproven companies

Kuaishou

Beijing Kwai Technology, the operator of popular video-sharing app Kuaishou, raised 19.5 billion yuan in 2019. © Reuters

YUSHO CHO and FUMIE YAKU, Nikkei staff writers

SHANGHAI/TOKYO -- Chinese startups are facing an increasingly tough financing landscape after data showed a slide in the amount raised last year as investors shift to backing companies with track records.

Chinese startups raised 774.1 billion yuan ($112 billion) in 2019, down nearly 36% from a year ago, according to Jingdata, a unit of an online Chinese startup information service 36Kr.

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