1. Deals Analysis
April 14, 2020updated 21 Apr 2020 2:33pm

China’s venture financing deals in technology industry sees a rise of 46.3% in Q4 2019

By Carmen

China’s technology industry witnessed a rise of 46.3% in venture financing deal activity during Q4 2019, over the last four-quarter average, according to GlobalData’s deals database.

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The industry observed 566 venture financing deals during the quarter when compared with the last four-quarter average of 387 deals. On comparison with the previous quarter, it recorded a rise of 33.2% in Q4 2019.

Total venture financing deals worth $11.36bn were announced in technology industry in China during Q4 2019.

The value marked an increase of 125.5% over the previous quarter and a rise of 70.5% when compared with the last four-quarter average, which was $6.66bn.

At a global level, China’s venture financing deal activity in the technology industry held a 20.6% share during the quarter in terms of deal volume and a 33% share in terms of deal value.

China venture financing deals in technology industry in Q4 2019: Top deals

The top five technology venture financing deals accounted for 65.3% of the overall value during Q4 2019.

The combined value of the top five technology venture financing deals stood at $7.41bn, against the overall value of $11.36bn recorded for the quarter.

The top announced China technology venture financing deal tracked by GlobalData in Q4 2019 were:

1) China Nanshan Development (Group), Haitong Hengxin Leasing, Huaneng Invesco WLR Investment ConsultingLtd., Morgan Stanley Venture Partners, Rosser Capital Partners Management and Urban Development Investment’s $3.7bn venture financing of Tenglong Holding.

2) The $3bn venture financing of Beijing Kuaishou Technology by Boyu Capital, Sequoia Capital China, Temasek Holdings (Private), Tencent Holdings, and YF Capital.

3) Bull Capital Partners, Chengwei Capital, CICC Capital Management Limited, DST Global, Source Code Capital, Tiger Global Management and Yunqi Capital’s $300m venture financing of Guangzhou Zhijing Information Technology.

4) The $211.71m venture financing of Taimei Technology by Cowin Venture Capital, Ivy Capital, Morningside Venture Capital, SAIF Partners, Softbank China Venture Capital, Tencent Holdings, Tiger Global Management and Zheshang Venture Capital Management.

5) The $200m venture financing of Kindler’s Information Technology by Beishang Capital, CDH Investments, Gaorong Captial and Mingde Holdings.

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.

 

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. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

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.

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