China's primary market continues to display strong state-led capital and ecosystem synergies in both fundraising and investment activity, marked by large-ticket deals and deepening industry-finance integration. Based on incomplete public data, August 2026 saw 10 newly registered private equity and venture capital fund managers, doubling year-on-year and surging 150.0% month-on-month. Newly filed private equity funds totaled 126, down 6.0% year-on-year and 17.1% month-on-month, while newly established venture capital funds reached 559, a 138.9% surge year-on-year but an 18.5% decline month-on-month. On the investment side, momentum stayed elevated amid the technology-led rally in secondary markets. August recorded 760 domestic equity investment deals, up 34.5% year-on-year but down 14.8% month-on-month. Total disclosed investment value hit RMB 71.932 billion, roughly returning to April-May levels and about 1.05 times the August 2025 figure. The average deal size grew 52.0% year-on-year to RMB 94.6478 million, though it fell approximately 28.4% from the prior month.
This edition of VC Monthly focuses on three highly active institutions, examining their investment pace, stage preferences, sector focus, and portfolio companies.
Early-Stage Investments Dominate; Nearly Half of Deals in Beijing Base
According to public disclosures from the Asset Management Association of China and Tianyancha, Inno Angel Fund was founded in 2013 by Tsinghua alumni including Li Zhu and Liu Huaiyu as an early-stage investment platform. Starting from a Tsinghua-incubator origin, the firm has backed over 500 projects to date, managing billions in RMB across multiple funds. It focuses on new-generation information technology, new energy and new materials, life sciences, and advanced manufacturing, primarily targeting angel and Pre-A rounds.
Through the end of August 2026, Inno Angel Fund had registered one new fund — the Beijing Inno Future Technology Venture Capital Partnership (Limited Partnership) — with a registered capital contribution of RMB 1.5 billion. Limited partners include Ren'ai Group, CICC Capital, Orient Securities Capital, Zhongguancun Science City, Shangcheng Capital, and Shougang Fund. The fund has already made 12 investments, including embodied intelligence world model company Qianjue Tech and AI computing firm Zhizi Xinyuan.
Within the reporting period, Inno Angel Fund disclosed 11 equity investment deals, roughly 5.5 times the year-ago level and flat versus July 2026. Historical data reveals a distinctly "pulsed" investment pattern over the past year, with high overall activity but pronounced peaks and troughs in specific months. In H2 2025, the fund climbed from an August low to a November peak, then dipped in December due to financial settlement and holidays. Entering 2026, deal counts in H1 fluctuated around the median, maintaining a steady cadence. From June through August, projects landed frequently, averaging over 10 deals per month.
By stage, Inno Angel Fund held true to its "early and small" mandate, with over 80% of August deals concentrated in angel, seed, and Pre-A rounds. Angel rounds alone accounted for 45.5%, solidly anchoring its core strategy. Notably, participating in the Series B of Xunlin Technology is uncommon for an angel fund, though Shuimu Tsinghua Alumni Seed Fund — where Li Zhu serves as founding partner — previously backed the company's angel and A+ rounds.
Sector-wise, artificial intelligence and advanced manufacturing drove August activity, each accounting for 36.4% of deals and collectively contributing over 70%. Within AI, investments spanned intelligent robotics, general AI applications, and foundational AI layers, while advanced manufacturing focused on integrated circuits, electronic equipment, and aerospace. Healthcare also drew two deals, both targeting medical devices.
Geographically, nearly half of Inno Angel Fund's projects were based in its home turf of Beijing, which offers top-tier university resources and foundational research strength, making it the preferred destination for AI and hard-tech startups. Shanghai, Jiangsu, and Zhejiang together accounted for roughly 45.5% of investments, rivaling Beijing, as Yangtze River Delta integration accelerates. Tianjin, a key supplement to the Beijing-Tianjin-Hebei coordinated development, is witnessing rapid growth in smart manufacturing; the fund's portfolio company Xunlin Technology, a glass substrate maker, has completed three funding rounds within six months, raising close to RMB 300 million in total.
Double Participation in Sisheng Tech Within Three Months, Betting on Brain-Computer Interface Inflection Point
AI-driven brain science company Sisheng Tech announced the completion of a tens-of-millions RMB seed+ round, led by Guoqi Investment, with Yuanyi Puhua and the Global Health Industry Innovation Center (GHIC) participating. The proceeds will fund core R&D in ultrasonic brain-computer interface technology, medical device development, multi-modal brain data and AI brain science platform building, and expansion of the interdisciplinary team. Existing shareholders Inno Angel Fund and Shuimu Tsinghua Alumni Seed Fund, which led a tens-of-millions RMB seed round in May, also followed on in this round.
Public records show Sisheng Tech was founded in 2025, specializing in ultrasound-based non-invasive brain-computer interfaces for neural modulation, assisted drug delivery, and brain science platform development. Leveraging ultrasonic neural regulation, the company achieves precise intracranial neural signal acquisition and functional intervention without electrode scalp attachment or cumbersome wearable devices, offering differentiated advantages in comfort, anti-interference, and long-term adaptability.