Dow Jones VentureSource’s Venture Capital Report Europe | 2Q | 2015

The following report presents Dow Jones VentureSource’s quarterly findings for European venture capital fundraising, investment, valuation, and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market. 

Highlights for 2Q 2015 include: 

• European venture capital fundraising doubles from prior quarter;
  Venture capital investment into European companies improves in consecutive quarters;
• Initial public offerings (IPOs) experienced an increase from the prior quarter, while the number of mergers and acquisitions (M&As) fell to its lowest level since 1Q 2013.

FUNDRAISING 

European Venture Capital Fundraising Improves in 2Q 2015 

• 25 European venture capital funds accumulated over €2 billion during 2Q 2015, more than double the euros raised in 1Q 2015 with a 47% increase in the number of fund closings.
• Compared with the year ago period, euros raised improved by 63% in two more fund closings.
• The largest fund of the quarter was Index Ventures Growth Fund III, which raised €650 million, accounting for 32% of the total amount raised for 2Q 2015.

FINANCING 

Investment into European Venture-backed Companies Improves Once More in 2Q 2015 

• European companies raised just over €3 billion for 357 deals during 2Q 2015, an increase of 12% in the amount raised from 1Q 2015 despite a 5% slide in the number of deals completed.
• In contrast with the year ago period, investment improved by 31% despite a 15% reduction in the number of completed deals.
• Consumer Services was the strongest sector of the quarter in terms of attracting investment followed by Business and Financial Services. The sectors garnered 45% and 24% of all euros invested during 2Q 2015 respectively.

Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2Q 2015) 

• Consumer Services received the largest allocation of investment during 2Q 2015 (45%), accumulating €1.4 billion through 91 deals. Deal flow fell by 22% from the prior quarter, while sector investment dipped by 1%.
• Business and Financial Services placed second in terms of equity financing, taking a 24% share of all 2Q 2015 investment. The sector raised €716 million across 99 deals, an improvement of 53% in capital raised and 16% in deals completed from the previous quarter.
• Healthcare placed in third, with companies in the sector gathering 15% of the total amount invested for the quarter. The sector received €458 million across 52 deals; a rise of 48% in capital invested from 1Q 2015 despite a 10% decline in deal flow.

Equity Financings into Europe-based, VC-backed Companies, by Country (2Q 2015) 

• The United Kingdom was the most favoured destination for equity financing during 2Q 2015, receiving €645 million across 89 deals. The country took 21% of all equity financing for the quarter, despite a 28% fall in investment from 1Q 2015.
• Sweden placed second, attracting a 19% share of European financing. Investment reached a total €596 million, bolstered in large part by Spotify Technology’s most recent round of financing in April.
• Germany occupies third position raising €508 million, 17% of the total for the quarter. France placed fourth with a 15% share, raising €449 million during 2Q 2015.

LIQUIDITY 

Europe 2Q 2015 Venture Exit Activity 

• 37 venture-backed M&As took place in Europe during 2Q 2015, a drop of 27% from 1Q 2015 and 12% from 2Q 2014.
• The largest M&A for 2Q 2015 was Yemek Sepeti Elektronik Iletisim Tanitim, a provider of online food ordering services in Turkey, which was acquired by Delivery Hero Holding AG for €526 million.
• 15 venture-backed IPOs took place during 2Q 2015, a 25% rise from the prior quarter but a 29% decline in listings for VC-backed companies from the year ago period.

European VC-backed IPOs (2012-2015) 

• 15 venture-backed IPOs took place during 2Q 2015, an increase of three from the prior quarter but six fewer than in the year ago period.
• IPOs raised €533 million during 2Q 2015, an uptick of 28% from the $417 million raised in 1Q 2015. VC-backed companies raised an almost identical amount through IPOs compared with the year ago period (€530 million).
• The largest European VC-backed IPO of 2Q 2015 was the windeln.de GmbH listing in May. The company raised €183 million for its offering on the Deutsche Boerse.

Dow Jones VentureSource’s Venture Capital Report U.S. 1Q 2015

U.S. | 1Q | 2015

The following report presents Dow Jones VentureSource’s quarterly findings for U.S. venture capital fundraising, investment, valuation, and liquidity. 

Highlights for 1Q 2015 include:

U.S. venture capital fundraising decreased both in number of funds and amount invested;
Venture capital investment into U.S. companies experienced a minimal increase quarter-over-quarter ; Median pre-money valuation increased 29% from 4Q 2014;
Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As) experienced a decrease from the previous quarter.

FUNDRAISING 

Venture Fundraising Increases in U.S. during 1Q 2015 

• 56 funds garnered $8.1 billion in 1Q 2015, a 2% decrease in the amount raised, and also a 42% drop in number of funds from the prior quarter.
• Bessemer Venture Partners IX LP was the largest U.S. venture capital fund of 1Q 2015 raising $1.6 billion and accounting for 20% of the total amount raised during the quarter.
• Median U.S. fund size was $121 million in the first quarter of 2015.

U.S. Venture Investment in 1Q 2015 Registers Slight Improvement from 4Q 2014 

• U.S.-based companies raised $15.7 billion in 875 venture capital deals in 1Q 2015, a 1% rise in capital raised, however, the number of deals fell slightly (2%) from the previous quarter.
• Compared to the same period in 2014, amount invested went up 27%, while number of deals registered a 9% decrease.
• Healthcare and Business and Financial Services are the strongest sectors, respectively with 25% and 24% share of total amount invested.

Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (1Q 2015) 

• Healthcare received the largest investment allocation during 1Q’15 (25%), accumulating $3.9 billion through 185 deals. The figures represent a respective increase of 50% and 19% from 4Q’14.
• The Business and Financial sector placed second in terms of equity financing, taking a 24% share of all 1Q’15 investment. 230 deals drew $3.7 billion, up 4% in capital raised.
• Consumer Services ranked third with almost $3.7 billion in 156 deals, dropping 17% from the $4.4 billion accumulated in the previous quarter. The sector’s investment figure represents a 23% share of total equity investment into U.S. VC-backed companies for the quarter.
• $2.8 billion were raised by Information Technology (IT) in 240 deals, a decrease of 26% in capital invested and 9% in deal flow.

LIQUIDITY 

Venture M&A and IPO Market Activity in the U.S. during 1Q 2015 

• Mergers and acquisitions (M&As) of venture-backed companies dropped 71% from 4Q 2014, with 104 deals garnering $9.9 billion.
• Initial public offering (IPO) activity decreased in 1Q 2015 raising $912 million, down 71% from the previous quarter.

U.S. VC-backed M&As

• 104 M&As of venture-backed companies in the U.S. garnered $9.9 billion during 1Q 2015.
• In contrast with 4Q 2014, when a total of 109 transactions accumulated almost $34 billion, both number of deals and amount raised decreased by 5% and 71% respectively.
• The largest M&A of the quarter was Flexus Biosciences Inc., which was acquired by Bristol-Myers Squibb (XNYS:BMY) for $1.25 billion.

U.S. VC-backed IPOs (2012-2015) 

• 12 venture-backed companies raised $912 million through public offerings in 1Q 2015. Number of deals decreased by 48% and capital raised registered a 71% drop from the previous quarter.
• The largest IPO of the quarter was Box Inc. (NYSE: BOX), which completed a $175 million IPO.

Dow Jones Venture Capital Report Europe 1Q 2015

The following report presents Dow Jones VentureSource’s quarterly findings for European venture capital fundraising, investment, valuation, and liquidity. 

Highlights for 1Q 2015 include: 

European venture capital fundraising down by a quarter from 4Q 2014;
Venture capital investment into European companies rose to highest figure since 3Q 2001;
Though exits via mergers and acquisitions (M&As) and initial public offerings (IPOs) rose slightly from the prior quarter, euros raised through IPOs shrunk to less than a fifth of the 4Q 2014 total.

 

 
FUNDRAISING 

European Venture Capital Fundraising Experiences Downturn in 1Q 2015

• 13 European venture capital funds accumulated €874 million during 1Q 2015, a decline of 25% in euros raised and 38% in the number of funds with closings from 4Q 2014.
• Despite the decline in fundraising from 4Q 2014, euros raised improved by 36% compared with the year ago period, despite the number of funds with closings falling by 43%.
• The largest fund of the quarter was HV Holtzbrinck Ventures Fund VI which raised €285 million, accounting for 33% of the total amount raised for 1Q 2015.

FINANCING 

Investment into European Venture-backed Companies Improves in 1Q 2015 

• European companies raised €2.6 billion for 345 deals during 1Q 2015, an increase of 41% in the amount raised from 4Q 2014 despite a 5% slide in the number of deals completed.
• In contrast with the year ago period, investment improved by 63% despite a 12% reduction in the number of completed deals.
• Consumer Services was the strongest sector of the quarter in terms of attracting investment with Business and Financial Services in second. The sectors garnered 50% and 17% of all dollars invested during 1Q 2015 respectively.

Equity Financings into Europe-based, VC-backed Companies, by Industry Group (1Q 2015)

• Consumer Services received the largest allocation of investment during 1Q 2015 (50%), accumulating €1.3 billion through 103 deals. Although deal flow remained relatively steady, sector investment quadrupled from the 4Q 2014 figure of €326 million.
• Business and Financial Services placed second in terms of equity financing, taking a 17% share of all 1Q 2015 investment. The sector raised €443 million across 82 deals, a decline of 26% in capital raised and 12% in deals completed from the previous quarter.
• Information Technology placed in third, with companies in the sector gathering 16% of the total amount invested for the quarter. The sector received €436 million across 75 deals; a rise of 65% and 1% from 4Q 2014 in capital invested and deal flow respectively.

Equity Financings into Europe-based, VC-backed Companies, by Country (1Q 2015) 

• Germany was the most favoured destination for equity financing during 1Q 2015, receiving €921 million across 64 deals. The country took 35% of all equity financing for the quarter, tripling its 4Q 2014 investment total.
• The United Kingdom placed second, attracting a 34% share of European financing. Investment rose by 54% from the prior quarter to total €886 million while deal flow increased by 16%.
• France occupies third position raising €292 million, 11% of the total for the quarter. Austria rose to fourth position with a 7% share, raising €173 million during 1Q 2015.

LIQUIDITY 

Europe Sees Improvement in 1Q 2015 Venture Exit Activity from Prior Quarter

• 49 venture-backed M&As took place in Europe during 1Q 2015, up 7% from 4Q 2014 but down 6% on the figure for 1Q 2014.
• The largest M&A for 1Q 2015 was Trophos SA, a developer of compounds for the treatment of neurological and cardiac diseases, which was acquired by Roche AG for €470 million.
• 12 venture-backed IPOs took place during 1Q 2015, two more than those seen in the prior quarter and four more than the listings for VC-backed companies completed in the year ago period.

European VC-backed IPOs

• 12 venture-backed IPOs took place during 1Q 2015, two more than those seen in the prior quarter and four more than the listings for VC-backed companies completed in the year ago period.
• IPOs raised €417 million during 1Q 2015, a decline of 81% from the $2.25 billion raised in 4Q 2014, which was the highest total for a single quarter since 2Q 2000. Compared to the year ago period, VC-backed companies raised 7% less through IPOs during 1Q 2015.
• The largest European VC-backed IPO of 1Q 2015 was Ascendis Pharma’s January listing on the NASDAQ. The company raised a total of €89 million, accounting for 21% of the total amount raised through European venture- backed company IPOs for the quarter.

Dow Jones Chinese Venture Capital Report 1Q 2015

FUNDRAISING 

Chinese Venture Capital Fundraising Improves in 1Q 2015 

• Chinese venture fundraising rose to $922 million across 6 funds during 1Q 2015, two and a half times the amount raised in 4Q 2014 albeit through three fewer funds.
• In comparison with the same period last year, dollars fell by 16% with the number of venture funds with closings declining by 40%.
• Banyan Partners Fund II was the largest of 1Q 2015, raising $362 million and accounting for 39% of the total amount raised in funds for the quarter.

FINANCING 

Venture Capital Investment in China - 1Q 2015 

Equity Financings into China– based, VC-backed Companies (2012 – 2015) 

• Chinese venture-backed companies raised more than $6.5 billion in 215 deals during 1Q 2015, a decline of 5% in capital invested and 21% in number of deals completed from 4Q 2014.
• Compared with 1Q 2014, however, dollars invested rose by more than two and a half times while deal flow improved by 56%.
• Consumer Services was the strongest sector of the quarter in terms of attracting investment with Business and Financial Services in second. The sectors garnered 67% and 21% of all dollars invested during 1Q 2015 respectively.

Equity Financings into China-based, VC-backed Companies, by Industry Group (1Q 2015) 

• Consumer Services companies took $4.4 billion through 94 deals during 1Q 2015, a rise of 17% in dollars invested from 4Q 2014 despite a 24% decrease in deals completed. The sector attracted 44% of all deals completed for the quarter and a 67% share of total amount invested.
• Business and Financial Services companies raised the second highest proportion of investment during 1Q 2015. The sector garnered $1.3 billion across 50 deals; over three times the dollars accrued in 4Q 2014 with a 25% improvement in deal flow.
• The Information Technology sector placed third for investment, receiving $524 million across 45 deals. Sector investment fell by 77% from 4Q 2014 while deal flow declined by 46%. The sector’s investment figure represents 8% of the total equity financing into China-based VC-backed companies for 1Q 2015.

LIQUIDITY 

Venture M&A and IPO Market Activity in China (1Q 2015) 

Exit Opportunities for Chinese VC-backed Companies

• Seven M&As were completed by venture-backed companies in China during 1Q 2015, one more than in the previous quarter and four more than in 1Q 2014.
• The largest M&A of the quarter was Hangzhou Songcheng Group’s acquisition of podcast services provider Six Rooms Holdings in March for $415 million.
• 21 VC-backed companies went public during 1Q in China, 50% more than in 4Q 2014 but 22% fewer than those completed in 1Q 2014.

Chinese VC-backed IPOs (2012-2015)

• 21 VC-backed companies went public during 1Q in China, 50% more than in 4Q 2014 but 22% fewer than those completed in 1Q 2014. Dollars raised through listings improved by 31% from the previous quarter to reach $1.7B, though the figure fell by 16% against the total amount raised during 1Q 2014.
• Beijing Kunlun Tech Co. Ltd. had the largest IPO of the quarter, raising $229 million for its January listing on the ChiNext. The online video game developer’s IPO represents 13% of the total raised through VC-backed IPOs in China during 1Q 2015.

Dow Jones VentureSource 4Q’14 U.S. Venture Capital Report

The following report presents Dow Jones VentureSource’s quarterly findings for U.S. venture capital fundraising, investment, valuation, and liquidity. Charts and graphs available here offer a comprehensive view of the trends currently affecting the venture capital market. 

Highlights for 4Q 2014 include: 

U.S. venture capital fundraising rose both in number of funds and amount invested;
Venture capital investment into U.S. companies experienced a quarter-over-quarter increase; Median pre-money valuation increased 30% from 3Q 2014 and more than doubled the 2013 value;
Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As) experienced an increase from the previous quarter.

FUNDRAISING 

Venture Fundraising Increases in U.S. during 4Q 2014 

85 funds garnered $8.1 billion in 4Q 2014, a 25% increase in the amount raised and also a 4% rise in number of funds from the prior quarter.
Venture capital funds have raised a total of almost $33 billion across 332 funds in 2014, up 62% from the total amount raised in 2013 and 27% in number of funds.
Tiger Global Private Investment Partners IX LP was the largest U.S. venture capital fund of 4Q 2014 raising $2.5 billion and accounting for 31% of the total amount raised during the quarter.
Median U.S. fund size was $110 million in 2014.

 

FINANCING 

U.S. Venture Investment on the Rise in 4Q 2014 

U.S.-based companies raised $13.8 billion from 814 venture capital deals in 4Q 2014, an increase in capital (24%) despite deal flow dropping 12% from the previous quarter.
Compared to the same period in 2013, number of deals decreased 20%, while amount invested registered a 44% increase.
In 2014, 3682 deals have been completed raising $52 billion, a respective 4% decrease and 47% increase on figures posted in 2013. 

Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (4Q 2014) 

Consumer Services saw the largest investment allocation, with 159 deals garnering almost $3.8 billion and accounting for 27% of total equity investment.
Information Technology (IT) raised the second highest proportion of investment for 4Q’14. IT companies drew $3.3 billion across 245 deals, up 52% and 13% from respective 3Q’14 figures.
Business and Financial Services placed third with $3.2 billion in 206 deals, increasing 4% from the $3.1 billion accumulated in the previous quarter, despite a 23% drop in number of deals.
$2.5 billion were raised by the Healthcare sector in 143 deals, down both in capital invested and deal flow (8% and 23%, respectively).
In 2014 as a whole, Business and Financial Services took a 26% share of investment ($13.7 billion), IT a 24% ($12.3 billion), Consumer Services a 23% ($11.9 billion), and Healthcare a 21% ($11 billion).

LIQUIDITY 

Venture M&A and IPO Market Activity in the U.S. during 4Q 2014 

Mergers and acquisitions (M&As) of venture-backed companies increased by 60% from 3Q 2014, with 102 deals garnering $32 billion.
Initial public offering (IPO) activity increased in 4Q 2014 raising $3 billion, up 134% from the previous quarter.

U.S. VC-backed M&As (2011-2014) 

102 M&As raised $32 billion during 4Q 2014, a 60% increase in M&A valuations despite the number of deals decreasing 23% compared to the previous quarter, when 132 M&As garnered $20 billion.
The largest M&A of the quarter was WhatsApp Inc., which was acquired by Facebook (NASDAQ: FB) for $19 billion.
483 M&As were completed for venture-backed companies in the U.S. during 2014, up 8% from the 449 completed during 2013 and 2% from the 473 seen during 2012.

U.S. VC-backed IPOs (2011-2014) 

21 venture-backed companies raised $3 billion through public offerings in 4Q 2014. Number of listings decreased by 5%, while capital raised more than doubled the amount from the previous quarter.
The largest IPO of the quarter was LendingClub Corp. (NYSE: LC), which completed a $870 million IPO.
2014 saw the highest number of US VC-backed IPOs since 2000, when 210 were completed. During 2014,105 companies garnered a total of $9.2 billion, an increase of 42% and 12% from respective 2013 figures.

Dow Jones VentureSource 4Q’14 Europe Venture Capital Report

The following report presents Dow Jones VentureSource’s quarterly findings for European venture capital fundraising, investment, valuation, and liquidity. Charts and graphs  available here offer a comprehensive view of the trends currently affecting the venture capital market. 

Highlights for 4Q 2014 include:
European venture capital fundraising experiences uptick from 3Q 2014, but suffers declines in both fund closings and euros raised for the 12 month period;
Venture capital investment into European companies falls from 3Q 2014, but improves by a quarter year over year;
Despite an overall fall in exit activity, the total amount raised through venture-backed Initial public offerings (IPOs) reached its highest point since 2Q 2000. 

FUNDRAISING 

European Venture Capital Fundraising Experiences Uptick in 4Q 2014 

18 European venture capital funds accumulated €927 million during 4Q 2014, an increase of 33% in euros raised and 20% in the number of funds with closings from 3Q 2014.
Despite the uptick in fundraising from 3Q 2014, the number of funds with closings during 4Q 2014 fell by 51% compared with the same period last year, while euros raised fell by 49%.
The largest fund of the quarter was Principia SGR’s Fund III which raised €160 million, accounting for 17% of the total amount raised for 4Q 2014.
Overall, the number of fund closings in 2014 was down by 4% to 76 from the year prior, while the total amount raised by venture funds fell by 18% from 2013 to €3.4 billion. 

FINANCING 

Investment into European Venture-backed Companies Falls in 4Q 2014 

Equity Financings into Europe – based, VC-backed Companies (2011 – 2014)

European companies raised €1.8 billion for 332 deals during 4Q 2014, a fall of 24% in the amount raised from 3Q 2014 despite just five fewer deals being completed.
In contrast with the year ago period, investment improved by 1% despite a 28% reduction in the number of completed deals.
In 2014 as a whole, European venture-backed companies attracted €7.9 billion across 1460 deals, a decline of 11% in deals completed from 2013 but an improvement of 25% in euros invested.

Equity Financings into Europe-based, VC-backed Companies, by Industry Group (4Q 2014) 

Business and Financial Services received the largest allocation of investment during 4Q 2014 (32%), accumulating €557 million through 80 deals. The sector remained the most attractive sector despite investment dropping by 41% from 3Q 2014. Deal flow remained flat.
Healthcare rose to second in terms of equity financing, taking a 30% share of all 4Q 2014 investment. The sector raised €535 million across 60 deals, an increase of 64% in capital raised and 25% in deals completed from the previous quarter.
Consumer Services was pushed down to third, with companies in the sector gathering 18% of the total amount invested for the quarter. The sector received €327 million across 96 deals; a fall of 53% and 3% from 3Q 2014 in capital invested and deal flow respectively.

Equity Financings into Europe-based, VC-backed Companies, by Country (4Q 2014)
The United Kingdom was the most favoured destination for equity financing during 4Q 2014, receiving €524 million across 69 deals. The country took in 30% of all investment into European VC-backed companies for the quarter.
Germany placed second, capturing 18% of European investment. Investment fell by 73% from the prior quarter to total €322 million. Deal flow remained relatively stable, however, with 66 completed.
The Netherlands rose to third position raising €243 million, a 14% share of investment. France placed in fourth position with a 12% share, raising €218 million during 3Q 2014.

LIQUIDITY 

Europe Sees Overall Decrease in 4Q 2014 Venture Exit Activity 

Exit Opportunities for European VC – backed Companies
(2011 – 2014)

42 venture-backed M&As took place in Europe during 4Q 2014, down 9% from 3Q 2014 but one up on the figure for 4Q 2013.
The largest M&A for 4Q 2014 was Belgium’s Clear2Pay NV, an e-payment solutions provider, which was acquired by Fidelity National Information Services for €375 million.
55 venture-backed IPOs took place during 2014, tripling the number of listings seen across Europe in 2013. 201 M&As were completed during the course of 2014, a 21% increase on the 166 that took place during 2013.

European VC-backed IPOs (2011-2014) 

10 IPOs were completed during 4Q 2014, a decline of 38% from the previous quarter’s total but an increase of one on those completed during 4Q 2013.
IPOs raised €2.3 billion during 4Q 2014, more than six times the figure seen in 4Q 2013 and the highest sum since 2Q 2000 when 71 IPOs raised a total of € 3.8 billion.
The largest European VC-backed IPO of 4Q 2014 was Rocket Internet AG’s October listing on the Frankfurt Stock Exchange. The company raised a total of €1.4 billion, accounting for 62% of the total amount raised through European venture-backed company IPOs for the quarter.

Dow Jones VentureSource China | 4Q | 2014 Venture Capital Report

The following report presents Dow Jones VentureSource’s quarterly findings for Chinese venture capital fundraising, investment, valuation, and liquidity. Charts and graphs available here offer a comprehensive view of the trends currently affecting the venture capital market.

Highlights for 4Q 2014 include: 

Chinese venture capital fundraising fails to improve on previous quarter, however, total fundraising for year more than doubles that of 2013; 

Venture capital investment into Chinese companies more than doubles 3Q 2014 total 

Overall exit activity improves from 3Q 2014 despite fall in mergers and acquisitions (M&As) as Initial public offerings (IPOs) rally in both number of offerings and dollars raised.

FUNDRAISING 

Chinese Venture Capital Fundraising Fails to Improve in 4Q 2014 

Chinese venture fundraising declined to $339 million across 9 funds during 4Q 2014. The quarter represents the lowest fundraising accumulation since 2Q 2013 when six funds raised just $140 million.
In comparison with the same period last year, dollars raised fell by 57% while the number of venture funds completing closings declined by 25%.
Le Fund’s II fund and Arbor Ventures’ fund I were the joint largest of 4Q 2014, raising $100 million apiece, accounting for 59% of the total amount for the quarter combined.
Looking at the year as a whole, however, 2014 has surpassed the previous year both in terms of dollars raised and the number of completed closings, improving by 131% and 8% respectively.

Chinese VC Fundraising 30 (2011 – 2014)

FINANCING 

Venture Capital Investment in China - 4Q 2014 

Equity Financings into China– based, VC-backed Companies (2011 – 2014)

Chinese venture-backed companies raised close to $6.8 billion in 243 deals during 4Q 2014, an increase of 128% in capital invested from 3Q 2014 with a 17% rise in the number of deals completed.
Compared with 4Q 2013, dollars invested more than quadrupled while deal flow increased by 79%.
Investment in venture backed companies in 2014 dwarfs that of 2013, with $15.5 billion raised compared with $4.8 billion. Similarly, deal flow has also increased significantly, from 439 to 740, equating to an increase of 69%.

Equity Financings into China-based, VC-backed Companies, by Industry Group (4Q 2014) 

Consumer Services companies took $3.7 billion through 110 deals during 4Q 2014, a rise of 91% in dollars invested from 3Q 2014 with a 10% increase in deals completed. The sector attracted 46% of all deals completed for the quarter and a 55% share of total amount invested.
The Information Technology sector placed second for investment, receiving $2.3 billion across 76 deals. Sector investment quintupled from 3Q 2014 as deal flow improved by 55% to a total of 32% of all deals completed for the quarter. The investment figure represents a 34% share of total equity financing into China-based VC- backed companies for 4Q 2014.
Business and Financial Services companies raised the third highest proportion of investment during 4Q 2014. The sector garnered $469 million across 38 deals, generating 16% of all deals for 4Q 2014; a 23% rise in dollars invested from 3Q 2014 despite deal flow remaining flat .

LIQUIDITY 

Chinese VC-backed IPOs (2011-2014) 

14 VC-backed companies went public during 4Q 2014 in China, an increase of 56% on 3Q 2014 and 17% on 4Q 2013.
HuaDian Heavy Industries had the largest IPO of the quarter, raising $245 million for its December listing on the Shanghai Stock Exchange. The material handling equipment provider’s IPO represents 19% of the total raised through VC-backed IPOs in China during 4Q 2014.
A total of $1.31 billion were raised through Chinese VC-backed IPOs in 4Q 2014, a rise of 24% from the previous quarter. A total of $7.2 billion has been raised through listings during 2014, dwarfing the $2 billion raised in 2013 and the most since 2011 when $15.7 billion were raised through 100 IPOs.