China VCs expect a better 2023, but valuations to temperAs fundraising gains steam, flat rounds, or even down rounds, will become the new norm this ye…

Seasoned venture capitalists in China expect the market to take a favourable turn in 2023, but entrepreneurs and their venture backers should not keep expectations of high valuations as bubbles burst across many overvalued industries.

After China relaxed its stringent zero-COVID policy on December 7, venture investors like Wu Shichun could finally breathe a sigh of relief as the domestic market ended about three years of frequent city lockdowns and travel restrictions that had made dealmaking and business trips almost impossible.

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