Tuesday, August 5, 2014

DJ VentureSource China -- 2Q 2014

China -- 2Q 2014

The following report presents Dow Jones VentureSource’s quarterly findings for Chinese venture capital fundraising, investment, and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market
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Highlights for 2Q 2014 include:

- Chinese venture capital fundraising reached its highest level since 4Q 2011 with the highest number of fund closings since 4Q 2012;
- Quarterly venture investment continued to rise, with deal flow and dollars invested surpassing both 1Q 2014 and 2Q 2013 levels;
- While venture-backed mergers and acquisitions (M&As) picked up, initial public offerings (IPOs) fell substantially from the flurry of listings completed during 1Q 2014.


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FUNDRAISING

Chinese Venture Capital Fundraising Experiences Significant Gains in 2Q 2014

Chinese venture fundraising rose to $3.06 billion across 13 funds during 2Q 2014. The quarter represents the highest fundraising accumulation since 4Q 2011 and the most number of funds since 4Q 2012.

Venture fundraising for the first half of 2014 compared very favourably to 2013’s equivalent period with $4.27 billion raised across 19 venture capital funds. This equates to a 58% rise in the number of fund closings and over three times the amount accumulated during the first half of last year.

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IDG Capital Partners’ China Venture Capital IV fund was the largest of 2Q 2014, raising $586 million and accounting for 19% of the total amount for the quarter.
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FINANCING

Venture Capital Investment in China Continues Rise in 2Q 2014


Investment into Chinese venture-backed companies continued to improve in 2Q 2014, as companies raised $2.8 billion from 121 deals, equating to a 13% increase in the number of deals and a 19% improvement in capital invested from the previous quarter.

Compared with 2Q 2013, deal flow improved by 38% while investment doubled.
Investment for the first half of 2014 dwarfs that of the equivalent 2013 period, with $5.1 billion raised compared with a little over $2 billion. Similarly, deal flow has also risen, from 151 to 228, equating to a 51% increase 

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