Core Insights - The domestic venture capital market in June showed signs of recovery, with increased activity from institutional LPs and a rise in new fund registrations, driven by policy LPs injecting crucial capital into the primary market [3][6][39]. Group 1: Institutional LP Activity - In June, the activity level of institutional LPs increased, with a month-on-month growth of 8.15% and a year-on-year increase of 41.12% in the number of contributions [6]. - A total of 409 new private equity and venture capital funds were registered in June, marking a 20.65% increase from the previous month and a 61.02% increase year-on-year [8]. - The types of LPs contributing in June were primarily policy LPs (39.05%), followed by industrial LPs (35.88%), financial LPs (19.23%), and others [10]. Group 2: Policy LPs - Policy LPs have been a significant force in the primary market, with over 800 billion yuan committed in the first half of 2025, accounting for nearly 70% of contributions [13]. - These LPs have provided stable funding during market fluctuations, effectively countering uncertainties and driving capital towards strategic emerging industries [13][14]. - In June, policy LPs primarily invested in strategic emerging industries, local特色产业, and advanced manufacturing sectors [14]. Group 3: Industrial LPs - Industrial LPs saw a 14% increase in activity in June, with non-listed companies showing a remarkable 17% growth, leading among all LP types [15]. - Key sectors for industrial LP investments included information technology, construction, and real estate, each demonstrating distinct investment strategies [15]. Group 4: Financial Institutions - Financial institutions increased their contributions by 16% in June, with insurance capital accounting for over half of the investments [23]. - Major insurance companies like China Life and Ping An Life led significant contributions, focusing on healthcare and strategic emerging industries [23][24]. Group 5: Regional Investment Trends - Jiangsu province led in both activity and contribution scale, with policy LPs driving capital towards strategic emerging industries and local economic development [28][32]. - The total scale of newly established specialized funds in Jiangsu reached 155 billion yuan, focusing on artificial intelligence, biomedicine, and advanced manufacturing [29]. - In contrast, central and western regions are increasing investments in local特色产业 to enhance regional economic development [33].

Core Viewpoint - The venture capital market is experiencing a significant recovery, with active participation from limited partners (LPs) and a notable increase in investment events, particularly in Jiangsu province [2][3][10]. Group 1: Market Recovery - The venture capital market has shown a comprehensive rebound in fundraising, investment, and exit activities in the first half of the year [3]. - Feedback from frontline investors indicates a marked increase in business travel efficiency, with a resurgence of activity in the venture capital market [3][4]. - Jiangsu province has emerged as a leader in LP activity, with a focus on industrial collaboration rather than merely meeting return metrics [10][14]. Group 2: Jiangsu's Strategic Fund Development - Jiangsu's strategic emerging industries mother fund has surpassed 100 billion yuan in total scale, with the recent launch of the third batch of specialized funds adding 15.5 billion yuan [5][8]. - Over the past year, the Jiangsu mother fund has established 41 specialized funds, covering all 13 districts in the province, with a total scale exceeding 106.9 billion yuan [8]. - The fund's operational efficiency is attributed to institutional innovations, including revised management regulations that encourage collaboration with state-owned enterprises and international investment institutions [9]. Group 3: Investment Trends and Events - In June 2025, Jiangsu province led the nation with 100 investment events, totaling 6.257 billion yuan, reflecting a strong regional capital heat [15]. - The province's active investment environment is further supported by the establishment of various specialized funds targeting high-end manufacturing, biotechnology, and other emerging sectors [13][15]. - The ongoing policy optimization in Jiangsu has positioned it as a hub for venture capital, with LP contributions significantly increasing [14]. Group 4: Broader Industry Context - The overall industry sentiment is being revitalized by policy incentives and technological breakthroughs, particularly in sectors like AI and robotics, contributing to the recovery of the venture capital market [17]. - The combination of patient capital and hard technology innovation is becoming increasingly evident in Jiangsu, showcasing the province's role as a vibrant innovation landscape [15][17].

Fundraising Market - Institutional LP contributions surged by 50% in the first half of 2025, reaching 872 billion yuan, with the number of contributions increasing by 2% to 3,315 [2][3] - The number of newly registered funds reached 2,180, with a total scale of 1.32 trillion yuan, marking a year-on-year growth of 3% and 20% respectively [2] - The National Integrated Circuit Industry Investment Fund Phase III contributed 224 billion yuan to three funds, significantly boosting fundraising in the primary market [3] Investment Market - Overall investment scale decreased by approximately 5% compared to the same period last year, a significant reduction from the 50% decline in 2024 [4] - Many investors reported increased activity, with some indicating that they had invested in nearly 80% of the projects they funded in the previous year by mid-2025 [4][5] Exit Market - The number of IPOs increased by 20, with a growth rate of 21%, and Hong Kong IPOs accounted for 38% of the total [6][7] - The total amount of cash returned from divestments reached 58.7 billion yuan, doubling year-on-year, with the number of divestment events increasing by 150% to 1,315 [6][7] - The participation of investment institutions in secondary market transactions and buybacks increased, with 92% of secondary transactions and 78% of buyback transactions involving investment institutions [7]