Core Insights - The 2025 China PE/VC Fund Industry CFO White Paper indicates a recovery in the market, with a 28% year-on-year increase in investment quantity to 5,074 deals and an 18% increase in investment scale to 574.8 billion yuan in the first half of the year, driven by policy incentives and industrial demand upgrades [1] Investment Trends - A significant decline in A-round transaction scale is noted, with transactions under 10 million yuan accounting for 38% and those between 100 million to 500 million yuan at 23.8%, while transactions over 1 billion yuan only represent 3% [2] - The market is primarily focused on mid-range transactions, indicating a preference for smaller projects with clear growth potential, characterized by "early and small investments" closely tied to industry needs [3] - A-round transactions saw a notable drop in scale compared to the previous year, attributed to the explosive growth of the Hong Kong IPO market and relaxed policies for unprofitable companies, leading investors to favor later-stage projects [3][4] Sector Focus - Artificial intelligence has emerged as a focal point for global venture capital, with 83% of attention directed towards this sector, benefiting from breakthroughs in generative AI technology and expanded application scenarios [6] - Approximately 55% of surveyed institutions increased their investment in hard technology, with 21% significantly raising their stakes by over 30% [5] Long-term Investment Strategies - A majority of 80.3% of surveyed institutions define "patient capital" as a 5-10 year long-term hold, reflecting a shift towards long-term value creation rather than short-term gains [8] - 57.7% of institutions are collaborating with industrial capital to extend investment cycles, while 45% are dynamically adjusting fund terms to manage liquidity needs [9]