1. Deals Analysis
February 7, 2021

Technology industry cross border venture financing deals total $2.5bn in China in Q4 2020

By Carmen

Total technology industry cross border venture financing deals worth $2.5bn were announced in the in Q4 2020, with $500m GL Ventures, Hillhouse Capital Group, Tencent Holdings and TrustBridge Partners’ venture financing, according to GlobalData’s deals database.

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The value marked an increase of 34.4% over the previous quarter and a drop of 20.9% when compared with the last four-quarter average of $3.16bn.

China held a 21.99% share of the global technology industry cross border venture financing deal value that totalled $11.37bn in Q4 2020.

In terms of deal activity, China recorded 39 cross border deals during Q4 2020, marking a decrease of 9.30% over the previous quarter and a flat growth over the last four-quarter average.

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

The top five technology industry cross border venture financing deals accounted for 56.9% of the overall value during Q4 2020.

The combined value of the top five cross border venture financing deals stood at $1.42bn, against the overall value of $2.5bn recorded for the quarter.

The top five technology industry cross border deals of Q4 2020 tracked by GlobalData were:

1) GL Ventures, Hillhouse Capital Group, Tencent Holdings and TrustBridge Partners’ $500m venture financing of Hangzhou Lianke Meixun Biomedical Technology

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

3) Bojia Capital, China Fortune Financial Group, Chuangzhi Capital, Fortune Caizhi, Guangzhou Yingrui Capital Management, SAIF Partners China and The Rise Fund’s $210m venture financing of Zhejiang Yiqi Education Technology

4) The $200m venture financing of Gaosi Education Group by GIC and Warburg Pincus

5) Baring Private Equity Asia, BOC International Holdings, Bohai Zhongsheng, CITIC Securities, CMB International Capital, GoldStone InvestmentLtd , Greater Bay Area Homeland Development Fund, Guangdong Technology Financial GroupLimited, Guangdong Wen’s Investment, Hillhouse Capital Group, Sino-Ocean Capital and Youshan Capital’s venture financing of Shenzhen DianMao Digital Technology for $197.56m.

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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