Greater China's startup funding surged to $26.7B in Q2 2026, with AI and embodied intelligence megadeals accounting for 72% of the total. This pushed H1 2026 funding to $46.8B, surpassing all of 2025.
TL;DR
- Greater China's startup funding hit $26.7B in Q2 2026, with AI and embodied intelligence megadeals accounting for 72% of the total.
- H1 2026 funding reached $46.8B, surpassing the $46.3B raised in all of 2025.
- AI and embodied intelligence deals absorbed nearly 60% of all megadeal funding in Q2.
What happened
Startup fundraising in Greater China grew for the fifth consecutive quarter, reaching $26.7B in Q2 2026, the highest level in over six years. This pushed H1 2026 funding to $46.8B, surpassing the $46.3B raised in all of 2025, according to DealStreetAsia DATA VANTAGE's latest report.
Deal value in Q2 surged 33.4% over Q1, with a 129.7% increase compared to H1 2025. Deal volume reached 708 in Q2, with H1 deal volume reaching 1,422, an 18.8% increase compared to H1 2025.
Megadeal financing (investments of $100M or more) soared 53.4% to almost $19.3B in Q2, accounting for 72% of the quarter's fundraising total. The number of megadeals expanded 4.9% quarter-over-quarter to 64.
AI and embodied intelligence deals absorbed nearly 60% of all megadeal funding. AI deals secured over $8.6B in Q2, while embodied intelligence recorded nearly $5.6B in combined financing. Overall AI funding in H1 2026 reached about $12.7B, outperforming H1 2025 by 11.3x.
Why it matters
For AI/ML developers and startup founders, the surge in funding and deal activity indicates a robust market for AI and embodied intelligence technologies. This presents opportunities for new startups and scaling existing ones.
For tech investors, the data suggests that AI and embodied intelligence are among the most attractive sectors for investment in Greater China. The high valuation levels and policy support make it an appealing market.
However, Sinovation Ventures' managing partner Richard Yang expects a reality check, noting that public markets will correct for sure amid a shift towards fundamental business validation from a scarcity-driven trading hype.
Key facts
- Q2 2026 startup funding in Greater China: $26.7B
- H1 2026 startup funding in Greater China: $46.8B
- Q2 2026 megadeal financing: $19.3B (72% of total funding)
- Number of Q2 2026 megadeals: 64
- Q2 2026 AI funding: $8.6B
- Q2 2026 embodied intelligence funding: $5.6B
- H1 2026 AI funding: $12.7B (11.3x H1 2025)
- Q2 2026 IPO proceeds: $11.4B
Context
The surge in funding and deal activity in Greater China's AI and embodied intelligence sectors reflects the global AI supercycle and the region's strategic policy support. The high valuation levels and policy support make it an appealing market for investors.
The data also highlights the resilience of Greater China's startup ecosystem, which has shown positive signs of exiting its multi-year downturn. The Main Board of the Hong Kong Exchange remained the primary listing venue for Greater China companies, while IPO activity across the overall A-share market in mainland China also accelerated.
However, IPO activity for Greater China-based companies in the US remained severely constrained, with only one listing in 2026.
