China Venture Capital Report Q1 2009

【Publication Date】
09-05-20
【Delivery Format】
Soft Copy
【Pages】213
【Charts】105
【Price】150USD
【Chinese Version】
1000RMB
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The Zero2IPO Research Center has been publishing Chinese Venture Capital reports since 2001. Having conducted a deep research and analysis, the Zero2IPO Research Center has newly published the China Venture Capital Report Q1 2009 on the basis of Q1 survey which targets on the most active Chinese and foreign VC funds. The report consists of five parts, including (a) overall review of the VC-related investment environment and highlights during Q1 2009, (b) detailed statistical analysis of fund-raising, investment, and exit of Chinese VC market, (c) collected, disclosed and analyzed cases concerning investment, newly raised funds, and exit (The report disclosed a total of 32 cases, including 22 investment cases, 9 newly raised funds, and one exit case), (d) special issue study (With the Analysis of Development Status and Investment Value of Chinese New Media Industry as the title, this issue probed into the market scale and the latest policy environment of the current Chinese new media industry, conducted statistical analysis on this industry in terms of VC investment, M&A and Listing, introduced the status quo of emerging mobile media enterprises exemplified by Kong.net, and emphasized the analysis of the investment value and risk of Chinese new media industry) and (e) finally the market outlook of Chinese VC market in Q2 2009.

According to statistics from Zero2IPO Research Center, nine Chinese and foreign VC institutions raised ten funds in this quarter, and the newly added capital available for investment in Chinese mainland was only US$889M. The number of newly raised funds decreased by 19 and newly added capital decreased by 36.9%, compared with the previous quarter. Likewise, VC investment also dwindled in the quarter. VC firms invested in 53 enterprises with a disclosed amount of US$320M, while the number of the VC-backed enterprises decreased by 79 and VC investment amount shrank by 61.0% in comparison to the previous quarter. This quarter saw new changes in VC investment structure featured by rising investment in Broad IT industry and active investment in Clean-tech industry, which claimed an unprecedented 10.0% of total VC investment. Moreover, the stage distribution of VC investment remained stable with expansion-stage enterprises still being most favored. VC exits remained inactive with IPO exit deals dramatically dwindled.

I. Fundraising

Q1 2009 witnessed a drastic decrease in fundraising on Chinese VC market. In this quarter, Chinese and foreign VC institutions raised 10 funds with a total amount of US$889M. The number of newly raised funds decreased by 65.5% and newly added capital decreased by 36.9% compared with the previous quarter. Meanwhile, the number of newly raised funds decreased by 58.3% and the amount raised decreased by 60.9% year on year.

II. Investment

Only 53 Chinese enterprises garnered VC investment in Q1'09, among which 46 disclosed a combined value of US$320M. Quarter on quarter, VC investment continued the downtrend since Q2'08. The number of investment deals dwindled by 79, or 59.8% from Q4'08, and investment amount dropped by 61.0% to US$320M from US$820M. On a year-on-year basis, both investment deals and amount showed a drastic slide. Specifically, the number of deals fell to 53 from 153 in the same period last year, and the investment amount plummeted by 71.2%.

III. Exit

Q1'09 saw 10 exit deals on Chinese VC market. The exit channel via IPO contracted due to the sluggish global stock markets, propelling VC institutions to turn to other exit options. In this quarter, non-IPO exit deals outnumbered IPO exit deals, indicating that the sustained slump in global stock markets has propelled VC institutions to try other options other than IPO.