China’s technology industry witnessed a rise of 4.5% in venture financing deal activity during Q2 2020, over the last four-quarter average, according to GlobalData’s deals database.

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The industry observed 444 venture financing deals during the quarter when compared with the last four-quarter average of 425 deals. On comparison with the previous quarter, it recorded a rise of 37.9% in Q2 2020.

Total venture financing deals worth $7.63bn were announced in technology industry in China during Q2 2020.

The value marked an increase of 153.4% over the previous quarter and a rise of 27.8% when compared with the last four-quarter average, which was $6bn.

At a global level, China’s venture financing deal activity in the technology industry held a 16% share during the quarter in terms of deal volume and a 27.7% share in terms of deal value.

China venture financing deals in technology industry in Q2 2020: Top deals

The top five technology venture financing deals accounted for 28.1% of the overall value during Q2 2020.

The combined value of the top five technology venture financing deals stood at $2.14bn, against the overall value of $7.63bn recorded for the quarter. The top announced China technology venture financing deal tracked by GlobalData in Q2 2020 was FountainVest Partners, Qatar Investment Authority, Sequoia Capital China, SoftBank Vision Fund, Tiantu Capital, Tiger Global Management and Xiang He Capital’s $750m venture financing of Zuoyebang.

In second place was the $589.75m venture financing of Shenzhen Huaxing Optoelectronics Technology by TCL Venture Capital and in third place was Beijing Junlian Capital Management, Haining City Industrial Assets, Haining Juanhu Science and Technology City Development Investment, IDG Capital, Light Source Capital, Riverhead Capital Investment Management, Sunshine Fusion and Lighthouse Capital’s $282.36m venture financing of Beijing ESWIN Technology Group.

The $266.17m venture financing of BYD (Ningbo) Semiconductor by CICC Capital ManagementLimited, SDIC Innovation Investment Management and Sequoia Capital China and China Internet Investment Fund, Guangzhou Nansha Financial Holdings Group, Haier Capital, Industrial and Commercial Bank of China, Shanghai guosheng (group) and Yangtze River Delta Industrial Innovation Fund’s venture financing of CloudWalk Technology for $253.91m held fourth and fifth positions, respectively.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

 

Visit our ‘Technology Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the technology industry.