US congressional probe into VCs investing in Chinese tech start-ups adds to woes for US-dollar funds
- Letters sent to four VC firms from a US House panel raises scrutiny as US dollar funding was already drying up in China
- GGV Capital, GSR Ventures, Qualcomm Ventures and Walden International were singled out for their investments in AI, semiconductors and other tech
A probe initiated by a US congressional panel into four American venture capital firms for their investment in Chinese tech firms could send jitters through US-dollar funds in China, analysts said.
The move is set to deal a fresh blow to the struggling US dollar-denominated funds, which had benefited the rise of many tech firms in the country over the last two decades.
The inquiry comes as US venture capital is drying up for Chinese start-ups, especially those working in AI and semiconductors, amid escalating geopolitical tensions between Beijing and Washington.
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There have been only 1,645 investment deals involving US-dollar funds in China so far this year, for an average of 235 per month, according to local start-up data service Itjuzi.com. That is a significant drop from last year’s 4,751 deals, or about 396 per month.
