Analysts say the Chinese venture capital market may cool down in 2016.
Data from London-based consultancy Preqin shows that venture capitalists signed 1,500 deals in China last year, registering a record high funding of 37 billion U.S. dollars.
However, Albert Yang, managing partner of iResearch Capital says the momentum of the venture capital market is hard to sustain this year.
"In the first half of last year, a lot of the funding came from companies that went public, which blew up the valuations of start-ups. In the second half of the year, when the secondary market didn't do well, money from these companies was not there anymore, which caused this bubble to burst. The companies that survived are more competitive, but I think this year the total amount of investment will drop."
At the same time, David Chen, associate of Banyan Capital, says there still existed great opportunities for investment as China's economy undergoes further transformation.
"There are more opportunities for entrepreneurs to build businesses in China's new economy, which is led by consumer goods and internet tech. It is a real opportunity for us to put more money and investment into this field."
Analysts say they believe the venture capital boom will create some of the world's most valuable start-ups, including smartphone manufacturer Xiaomi and ride-hailing service Didi Kuaidi.
