China VCs have a big problem — and it’s not just a drop in U.S. investor appetite

Early-stage investing has drawn tens of billions of dollars into China with relatively little to show for it.

Among China -focused investment firms, only four U.S. dollar-denominated venture capital funds established between 2015 and 2020 have at least returned investors all the money they put in.

That's according to a new report " China 's Private Capital Landscape " from Preqin .

Jinjian Zhang , founding partner of venture capital firm Vitalbridge , said his firm sold an investment to a listed company in March .

Zhang said people who provided investment term sheets hadn't actually seen the projects in question.

In 2021 , Zhang said Vitalbridge raised more money than it had aimed to, but the firm generally held off on new investments because the market was overvalued.