Venture Capital In China Rebounded During Q1

Venture capital activities including IPOs, fundraising and venture investment in China rebounded during the first quarter, according to new data released by Dow Jones Venture Source.

Twenty-seven venture-backed companies raised a total of US$2.05 billion during the first quarter, up 26% from the previous quarter. It is the highest quarterly number since the third quarter of 2011.

Industrial goods and materials took the largest share of the IPO total. Twelve companies in this sector raised a combined US$802 million, accounting for 39% of the quarterly total.

In terms of fundraising, six funds raised an aggregate of US$1.07 billion during the first quarter, up 37% in terms of total fundraising figures from the fourth quarter last year.

Shanghai-based Qiming Venture Partners’ US$500 million fourth fund was the largest fund to be raised during the quarter. DCM Ventures China Fund VII LP took second place, raising US$330 million.

Next, Shanghai-based Banyan Partners Fund I and Guangzhou-based Guangfa Xinde Investment Management Co.’s Zhuhai GF Xinde Alpha Industry Fund I raised US$206 million and US$16.30 million respectively.

A total of 90 venture capital deals saw a combined US$2 billion deployed by venture funds into venture-backed Chinese companies.

Total deal value increased 55% compared with the fourth quarter last year, despite the number of deals dropping 20%.

(Correction: an earlier version says the data are from DJX Venture Source.)

China Expert network