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Chinese VC spending on US biotech hit by security reviews

Chinese venture capital investment in US biotech companies fell by more than half in the first half of the year as Washington tightened scrutiny of funding from overseas, raising fears that US start-ups will struggle to raise funds and access the large Chinese market. 

Chinese investors took part in venture capital funding rounds for US biotech companies worth $725m in the first six months of 2019, down nearly 60 per cent from $1.65bn in the same period last year, according to Seattle-based data provider PitchBook. 

After accusing Beijing of systematically stealing intellectual property, Washington in November began subjecting any foreign investment over 5 per cent in several kinds of technologies including biotech to  review by the Committee on Foreign Investment in the US, a government security committee.

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