Chinese Venture Capital Fundraising Drops By 50% In 2013

China’s venture capital fundraising totaled US$1.97 billion in 2013, only half the amount raised during 2012, according to a report released by DJX VentureSource.

Venture-backed IPOs also experienced massive declines. A total of 15 venture firm-backed IPOs were completed in 2013, a drop of 67% from 2012 and 85% fewer than in 2011.

2013 saw the fewest Chinese venture firm-backed IPOs since 2008 when just 12 were completed.

But IPO activities accelerated dramatically toward year-end. Twelve venture firm-backed companies went public during the fourth quarter 2013, the highest number since the second quarter 2012.

The largest of IPOs was YuanShengTai Dairy Farm Ltd., which raised US$340 million for its November listing on the Hong Kong Stock Exchange.

In addition, a total of 20 venture-backed mergers and acquisitions were completed in 2013, representing an increase of 82% from the number completed both in 2012 and 2011.

Looking at venture investments, a total of 314 venture deals were completed for China-based venture capital-backed companies during 2013, up 20% compared to 2012.

In terms of capital invested, US$3.5 billion were invested during 2013, representing an overall decline of 29% from 2012.

Consumer services sector is the hottest industry for investment during 2013, with US$1.9 billion,or 54% share of total investment for the year.

IT companies garnered US$762 million giving the sector a 21% share, while business and financial services and healthcare placed third and fourth respectively with a 10% ($348 million) and 6% share ($229 million).


China Expert Network