CB Insights - uh oh china

Hi there,
 

On page 149 of the State Of Venture Report, you’ll notice something peculiar.

While every major venture market detailed in the report was up big in Q2 2021, China saw its 2nd straight quarterly decline in venture funding.  

Yup — while the US, LatAm, Canada, Europe, India, etc. were all climbing, China was falling.

(Note: you can get the full 190-page report for free here.)

Making big moves

Since the start of 2020, big tech (Facebook, Amazon, Microsoft, Google, and Apple) has invested in healthcare deals worth a total of $6.8B. 

We examine each FAMGA company’s healthcare strategy and what it means for the industry in this report.

China education kibosh

Right now, the primary sector in the crosshairs of Chinese regulators is the private education sector. The new restrictions will bar companies that engage in teaching school subjects from raising foreign investment, taking profits, or going public on foreign exchanges.

Note: Based on the 1700+ companies above, CB Insights automagically created a deck digging into the Chinese education sector, which you can find here.

The idea of making an entire sector uninvestable — especially after this amount of capital has already poured in — will certainly have interesting implications for China. 

When we look at the most active investors in China's education sector, we see it is populated with some of the smartest investors and corporations in China, ranging from Sequoia Capital to Tencent to Qiming Venture Partners.  

Mic drop

We're thrilled to announce our first 4 speakers for this year’s Future of Health (December 8-9, online).
 

Get ready to hear from:

• Co-founder and Co-CEO, GoodRX (NASDAQ: GDRX)

• Global Chief Medical Officer and VP of Healthcare, Microsoft (NASDAQ: MSFT)

• Executive Chairman and CEO, Transcarent (Livongo founder remaking the health & care experience)

• Co-founder and Chief Health Officer, Cityblock Health (unicorn — $2.9B valuation)

This year’s event will also feature 40+ live demos of tech solutions introducing healthcare institutions to technologies that can transform their businesses.
 

Check out all the categories and apply to demo here or register here.

Eyes in the back of your head

The pharmaceutical industry loses nearly $35B each year due to failures in transporting and storing products. 

Supply chain visibility solutions offer real-time insight into medication distribution and delivery. We map out the landscape in this client-only report.

So who benefits from China’s uncertainty?

While still only ~¼ of China’s size in terms of venture, the one beneficiary of China’s uncertainty may be India, which put up record venture numbers in Q2 2021.  

With the likes of Tiger Global actively investing in India, there is already a lot of international money flowing into the market. With China appearing more inhospitable to foreign investment, it looks like this money will increasingly go to India.

Wall Street Journal. The Pro VC newsletter reports on capital markets startup funding and references CB Insights data.

Retail Brew. Julia Gray (@juliagrayok) looks at retail tech investment using the CB Insights State Of Retail Tech Q2’21 report.

Quartz. Sultan Quadri (@QuadriSultan3) covers burnout among Nigerian startup founders and cites CB Insights research.

P.S. Don't miss our upcoming Q&A roundtable with CB Insights analysts on what's next for AI startups. Save your spot here.

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