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2014 YTD Figures Surpass Previous Records for Asia-Based Venture Capital Deals – September 2014

by Joel Coulson

  • 03 Sep 2014
  • PE
  • VC

Preqin’s Venture Deals Analyst shows that since 2007 there have been 5,365 venture capital financings in Asia at an aggregate value of $53bn. In 2014 so far, there have been 624 deals at an aggregate value of $10.8bn. The largest venture capital deal in 2014 to date is a $1bn funding of the India-based e-commerce firm Flipkart, which was provided by a consortium of investors including Accel Partners, DST Global, Tiger Global Management among others.

Currently, the deal count in 2014 YTD is larger than that of each of the entire years of 2007 (506), 2008 (544), 2009 (453) and 2010 (619), and its aggregate value of $10.8bn is larger than every previous year, representing a 135% increase on 2007, Preqin’s first year recorded. Historical comparisons show that the annual aggregate value has progressively increased since the $5.4bn recorded in 2012, with an 18% increase in 2013 and an even more significant 69% increase in 2014 YTD. The largest completed year on record is 2011, at $9.6bn, but 2014 has already demonstrated a 12% increase on this and dwarfs 2011 on average deal size: pitting $24mn against $17mn respectively.

Of all the countries that make up the Asia region, China has seen the most venture capital deals: 2,860 since 2007, at an aggregate value of $37bn; followed by India: 1,649 at an aggregate value of $12bn. These two countries are the only ones to break 1,000 deals across this timespan, with the third highest number coming from Japan with 242 deals at a $1bn aggregate value, yet this represents 85% less deals than in India. Only two other countries have seen more than 100 venture capital financings since 2007: Singapore, with 237, and South Korea, with 100, which is indicative of the development cycle and wide disparities seen across Asia’s economies.

The technical revolution in Asia becomes evident when looking at the top three industries by Asia-based venture capital deal volume; the internet sector has seen 1,480 deals since 2007, a 28% share of the total venture capital investment in the region. In terms of the number of deals this is nearly double the number of financings seen in the second most prominent industry, telecoms, which has witnessed 761 completed deals in the same time frame. Finally, the software & related industry sector rounds off the top three, responsible for 520 Asia-based venture capital deals. These three sectors alone account for a 51% majority of all venture capital deals completed in Asia between 2007 and 2014 YTD.

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