In 2025, institutional LP investments in the venture capital market will exceed 1.8 trillion yuan

Recently, ZHIZHONG ZERONE released the “2025 Observation Report on China’s Private Equity Investment Industry - Capital Contribution Chapter.” According to ZHIZHONG ZERONE, in 2025, a total of 9,319 institutional LP investments were made nationwide, a 36% increase compared to 2024. Institutional LPs committed 1.8243 trillion yuan, up 43% year-over-year. Structurally, major fund sources such as the National Big Fund, government-guided funds, state-owned enterprises, financial institutions, and listed companies are all actively participating, driving a significant rebound in the venture capital fundraising market in 2025.

Local State-Owned Capital Investment Reaches Five-Year High

According to ZHIZHONG ZERONE, in 2025, 307 government-guided funds made 757 investments, with a committed capital of 398.2 billion yuan, a 73% increase from 2024. Notably, national-level guiding funds made substantial contributions. ZHIZHONG ZERONE reports that in 2025, national-level guiding funds committed 230.4 billion yuan, compared to only 10.7 billion yuan in 2024.

Among the investments by national-level funds in 2025, the most remarkable are the three major investments by the “Big Fund Phase III” into three national guiding funds—Huaxin Dingxin, Guotou Jiexin, and the National Artificial Intelligence Industry Fund—totaling 224 billion yuan. This is the first investment after the establishment of “Big Fund Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and adopts a partnership model, reflecting a more diversified investment approach.

Additionally, based on the data from various levels of government-guided funds, ZHIZHONG ZERONE reports that in 2025, local governments across China issued 496 selection announcements, including 85 for fund managers of parent funds and 407 for sub-funds. The number of sub-fund selection announcements increased by 76% compared to 2024, indicating a stronger willingness to invest from local guided funds.

It is noteworthy that, driven by policy support, state-owned enterprises (SOEs) reactivated their investments in 2025. SOEs invested over 3 million yuan, marking the highest investment amount in nearly three years, with a 249% increase compared to 2024. Local state-owned capital also reached a five-year high, up 85% from 2024.

Listed Companies’ Investment “Rebounds” Focused on AI and New Tracks

As a key source of market-oriented LPs, industrial capital was also quite active in 2025. ZHIZHONG ZERONE data shows that 2,543 industrial investors made 3,126 investments, totaling 185.7 billion yuan.

Specifically, the investment amount by listed companies has been declining since 2022 but showed signs of stabilization and gradual recovery in 2025, reaching 31.7 billion yuan, a 24.8% increase year-over-year. The average investment per deal slightly decreased compared to 2024, to around 90 million yuan. The main sectors for listed company investments are electronic hardware and biomedicine.

According to announcements from listed companies, ZHIZHONG ZERONE reports that in 2025, 460 announcements were made regarding planned investments in funds, a 15% increase from 2024. Since actual fund deployment often lags behind announcement dates, these funds are expected to be gradually implemented in 2026.

Regarding key sectors of focus, from 2023 to 2025, listed companies have concentrated on new energy and new materials. In 2025, artificial intelligence became one of the new key sectors, correlating with high market interest and attention on projects in this field.

Financial Institutions’ Investment Surges Over 20%, Banks and AIC Accelerate “Taking Action”

Financial institutions’ investments also became a highlight of the fundraising market in 2025. ZHIZHONG ZERONE data shows that 148 financial institutions made 444 investments, totaling 261.2 billion yuan, a 22% increase compared to 2024.

Among them, banking institutions made 130 investments, a 195% increase from 2024; insurance institutions also significantly increased their investments, reaching 114.5 billion yuan, up 58% year-over-year.

Specifically, in terms of bank AIC (Asset Investment Companies), 2025 saw more AIC equity investment funds being established than in 2024, with a total committed investment of 72.8 billion yuan. ICBC AIC had the largest committed scale, with a registered fund size of up to 116.6 billion yuan.