Innovation drives angel investment growth in China

The disclosed value of the deals reached more than $526 million, a jump of 161.7 percent year on year, said the report.

China's innovation policy and high returns are believed to be main reasons driving growth of angel investments, said Lin Dakun, an analyst of the group.

China has released a string of measures to create an amicable environment for innovation and entrepreneurship in order to power growth and generate jobs.

Over the past two years, many Chinese provinces and regions have set up angel investment funds led by the government to help private investment institutions provide financial support to startups.

Chinese angel investors prefer technology, media and telecom industries. These sectors made up 80 percent of the fund recipients in 2014, Lin said.

However, professional angel investors are still not enough in China. Compared with nearly 350,000 angel investors in the US, China only has around 500 angel investors who are actively engaged, said Guo Hong, chief of the management committee of Zhongguancun, a technology hub in Beijing.

In addition, Chinese startups need more connections and clearer vision, said Lan Ningyu, chief executive officer of the AngelCrunch, an online Chinese community that connects startup companies and angel investors.

"Once you have an innovative and advanced technology or business mode, investors are willing to support you," he said.