VCs active in China

Venture capital investment in China accelerated in the second quarter, fueled by a high volume of tech companies raising funds from overseas investors.

A total of 121 Chinese companies raised about $694 million in Q2, compared to $418.95 million invested in 67 companies in Q1, according to Beijing-based research firm Zero2IPO.

IT companies accounted for most of the deals, with 70 startups raising cash, including 56 that went outside China’s borders to raise funding from foreign firms. Companies in the life sciences and services sectors, along with industry and manufacturing, accounted for most of the rest of the deals in the quarter.

Nearly three-fourths of the money invested by foreign venture firms went to companies based in Beijing and Shanghai. Chinese venture capitalists spread their wealth more broadly, with only about a third of deals involving companies in those two cities. —Joanna Glasner