1. Deals Analysis
February 3, 2021updated 25 Oct 2021 8:31am

China’s venture financing deals in technology industry sees a drop of 1.5% in Q4 2020

By Carmen

China’s technology industry witnessed a drop of 1.5% in venture financing deal activity during Q4 2020, over the last four-quarter average, according to GlobalData’s deals database.

  • Embed this chart

    Embed this chart into your website

    Copy and paste the code below into your website to display the chart.

The industry observed 455 venture financing deals during the quarter when compared with the last four-quarter average of 462 deals. On comparison with the previous quarter, it recorded a drop of 5.2% in Q4 2020.

Total venture financing deals worth $13.76bn were announced in technology industry in China during Q4 2020.

The value marked an increase of 71.9% over the previous quarter and a rise of 78.1% when compared with the last four-quarter average, which was $7.73bn.

At a global level, China’s venture financing deal activity in the technology industry held a 16.6% share during the quarter in terms of deal volume and a 33.6% share in terms of deal value.

China venture financing deals in technology industry in Q4 2020: Top deals

The top five technology venture financing deals accounted for 42.2% of the overall value during Q4 2020.

The combined value of the top five technology venture financing deals stood at $5.81bn, against the overall value of $13.76bn recorded for the quarter.

The top five announced China technology venture financing deal tracked by GlobalData in Q4 2020 are:

1) Anhui Sanzhong Yichuang Industrial Development Fund, GigaDevice Semiconductor Beijing, Hefei State-owned Assets Supervision and Administration Commission, National Integrated Circuit Industry Investment Fund and Xiaomi Yangtze River Industry Fund’s $2.39bn venture financing of Ruili Integrated Circuit.

2) The $1.6bn venture financing of Zuoyebang by Alibaba Group Holding, FountainVest Partners, Sequoia Capital China, SoftBank Vision Fund and Tiger Global Management.

3) CITIC Industrial Fund, Danhe Capital, Dehong Capital, DST Global, GIC, Jinglin Equity Investment, Temasek Holdings (Private) and Trust Capital Services (India)’s $1bn venture financing of Zhenguanyu Tech.

4) The $500m venture financing of Hangzhou Lianke Meixun Biomedical Technology by GL Ventures, Hillhouse Capital Group, Tencent Holdings and TrustBridge Partners.

5) China Structural Reform Fund, Shenzhen Cowincapital, Eastern Bell Capital, Genesis Capital China, GLP-C&D Equity Investment Fund, Legend Capital, Matrix Partners China, Tencent Holdings, Tiger Management, Xiamen C&D and Yunfeng Capital’s venture financing of ZKH Industrial Supply for $315m.

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 big data 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.

Topics in this article: ,