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 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, a 43% rise 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, leading to 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 committed capital of 398.2 billion yuan, up 73% 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 marks the first investment since the establishment of the “Big Fund Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and operates as a partnership, reflecting a more diversified investment approach.

Additionally, based on government-guided fund disclosures, 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 guiding funds.

It is also noteworthy 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 from 2024. Local state-owned capital also reached a five-year high, up 85% from the previous year.

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

As a key source of market-oriented LPs, industrial capital was 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 about 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, listed companies issued 460 notices of intended fund participation, a 15% increase from 2024. However, actual fund deployment often lags behind these announcements, so these funds are expected to be gradually implemented in 2026.

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

Financial Institutions Increase Investment by 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 in 2025, 148 financial institutions made 444 investments, with a total of 261.2 billion yuan, up 22% from 2024.

Among them, banking institutions made 130 investments, a 195% increase compared to 2024. Insurance sector investments also surged, reaching 114.5 billion yuan, a 58% increase 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 capital of 72.8 billion yuan. Industrial and Commercial Bank of China AIC had the largest committed investment scale, with a total registered fund size of up to 116.6 billion yuan.