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 Deployment Edition.” According to ZHIZHONG ZERONE’s statistics, in 2025, a total of 9,319 institutional LP investments were made nationwide, a 36% increase compared to 2024. Institutional LP committed capital reached 1.8243 trillion yuan, up 43% year-over-year. Structurally, major capital entities 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 5-Year High

According to ZHIZHONG ZERONE, in 2025, there were 307 government-guided funds making 757 investments, with committed capital of 398.2 billion yuan, a 73% increase from 2024. Notably, national-level guiding funds made substantial contributions. 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 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 marks the first investment since the establishment of “Big Fund Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and operates in a partnership model, reflecting a more diversified investment approach.

Additionally, based on the data from ZHIZHONG ZERONE, local government-guided funds showed increased activity in 2025. A total of 496 issuance notices for fund selection were published nationwide, including 85 for parent fund managers and 407 for sub-funds. Notably, sub-fund notices increased by 76% compared to 2024, indicating a stronger willingness among local governments to invest in 2025.

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

Listed Companies “Rebound” in Investment, Focusing on AI and New Tracks

As a key source of market-oriented LPs, industrial capital was also quite active in 2025. According to ZHIZHONG ZERONE, 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 the downward trend slowed in 2025 and began to recover. The total investment reached 31.7 billion yuan, a 24.8% increase year-over-year. The average investment per company slightly decreased compared to 2024, to about 0.9 billion yuan. The main sectors for listed company investments are electronic hardware and biomedicine.

Based on announcements from listed companies, ZHIZHONG ZERONE reports that in 2025, listed companies issued 460 notices of intent to participate in funds, a 15% increase from 2024. However, there is often a lag between fund announcements and actual fund deployment, so these funds are expected to be gradually realized 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 for listed companies, correlating with the high market interest and attention on projects in this field.

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

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

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

Specifically, bank AICs saw more equity investment fund deployments in 2025 than in 2024, with a total investment of 72.8 billion yuan. Industrial and Commercial Bank of China (ICBC) AIC had the largest committed capital, with a registered fund size of up to 116.6 billion yuan.