(Yicai) Nov. 25 -- As China's venture capital market contracts, emerging industries such as advanced manufacturing and new energy have become the main focus for the remaining investors.

Despite the overall market downturn, the vision of transforming human life, as well as the allure of high-risk returns, continue to draw venture capital institutions to invest actively in small tech startups, especially those in early developmental stages, Yicai learned during a limited and general partners' summit of the 18th China Venture Investment Conference held in Shanghai last week.

"Our chief operating officer meets several groups of potential investors almost daily," a staff member of a robotics startup in Shenzhen told Yicai. The less than two-year-old company "has no shortage of funds or investors." "Only those who can integrate into the industrial chain and make swift investment decisions can secure a place on our list."

Once startups can demonstrate development achievements, a large number of investors will pour in, the employee said. However, most robotics startups currently allocate their funding to research and development, and only a handful of them deploy resources for commercial operations.

Meanwhile, investors are enhancing their post-investment strategies. They are increasingly offering direct support to startups, such as securing orders or facilitating collaboration along the industrial chain, according to Shan Junbao, chairman of private equity firm CICC Capital.

However, the broader industry is becoming more cautious due to China's slowing economic growth. Startups are taking significantly more time to go from Series B to Series C, said Yang Xiaolei, chief executive of equity information platform CVSource.

Institutions are flocking to invest in early-stage and small-scale projects or engage in mergers and acquisitions but systematically overlook scale-ups, Yang added.

Market activity is shrinking. By Oct. 31, the number of newly established VC managers this year was only one-tenth of the number of exits. "Apart from state-owned capital, there are very few market-oriented managers left," Yang added.

Fewer VC managers could lead to increased financing pressures on startups, ultimately hampering innovation, per the CEO.

Editors: Tang Shihua, Emmi Laine