Data presented by Buy Shares indicates that the ten largest start-ups by venture capital funding in the world raised $9.04bn during Q4 2020. The money was raised across different series of funding.
China dominates most funded start-ups
Chinese-based logistics company Manbang Group raised the highest amount at $1.7bn, followed by Zuoyebang at $1.6bn, while Yuanfudao, also from China, ranks third with funding equaling to $1bn.
Yunwang Wandian raised $910m while Enovate Motors ranks fifth with $740m in VC funding during the last quarter of 2020.
San Diego-based pharmaceuticals firm Resilience is sixth after raising $730m, while Robinhood raised the seventh-highest amount at $670m. Zomato VC funding amounts to $660m, with Chime occupying the ninth slot at $530m. Relativity raised the tenth highest amount at $500m.
From the data, China accounts for 50% of the most funded VC start-ups.
The Buy Shares report puts the dominance into perspective by stating that: “Chinese dominance of the list does not come as a surprise since the country has witnessed a startup boom in recent years. China has had a booming startup ecosystem in the previous years based on the amount of capital raised and the overall number of emerging companies. Unlike other regions, Chinese startups have strong support from the government alongside growing funding resources from the private sector and a massive talent pool. The country has therefore seen a surge in VC funding as they bet on a favourable environment.”
New businesses in the Asian economic giant leverage on a conducive environment characterized by access to edge cutting technologies and innovation.
Many global businesses strive to engage with Chinese start-ups for other reasons like new ecosystems, accelerating growth through external capacity, creating startup spinoffs, amplifying investments by accessing external resources, setting the standard in an emerging area, and becoming the perfect supplier of emerging companies.