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Overview of Venture Capital Deal Activity in 2015

by Adam Jackson

  • 02 Feb 2016
  • PE
  • VC

Preqin’s Venture Deals Analyst module on Private Equity Online details approximately 46,000 venture capital financings announced globally since 2011, for a collective deal value of more than $420bn. Despite a reduction in the number of deals from 9,901 in 2014 to 9,476 in 2015, aggregate deal value rose by 46% over the period, from $94bn to $137bn.

The rise in deal value is largely due to the surge in the number of venture capital financings valued at $100mn or more. There were 236 such deals in 2015, a 79% increase on 2014. The aggregate value of these deals in 2015 stood at $60bn, double the $30bn seen in the preceding year, and accounted for 44% of the total value of venture capital financings. The third quarter of 2015 recorded the largest quarterly number (72) of $100mn+ deals, contributing to the largest quarterly value of venture capital deals since 2011 ($42bn).

The largest financing of 2015 was the $3bn received by China-based Didi Kuaidi. In July, the telecoms company raised $2bn in financing from investors including Alibaba Group, Ping An Ventures, Temasek Holdings, Capital International Private Equity Fund and Tencent Holdings, following this with a $1bn financing in early September.

In terms of industry, internet deals continue to dominate the venture capital market, equating to 27% of the total number of deals in 2015. Despite the number of internet deals remaining relatively static (2,602 in 2014 to 2,554 in 2015), the $46bn in internet financings represented a third of total venture capital deal value, a five percentage point increase on the proportion seen in 2014. There were 1,704 transactions recorded in the software & related sector for $19bn, accounting for 18% of the number and 14% of the aggregate value of venture capital deals in 2015, while the telecoms industry saw 1,625 deals (17% of the total number) for $22bn (16% of the total value).

Series A financings saw the largest increase in the number of deals in 2015, rising from 1,677 in 2014 to 1,952 in 2015  – a 16% increase – coupled with a 55% increase in aggregate deal value over the same time period ($1.1bn was raised via 1,677 series A financings in 2014, compared with $1.7bn via 1,952 deals in 2015). Zhong An Online Property Insurance raised the largest series A round of 2015 ($934mn). Investors in the round included CDH Investments, China International Capital Corporation, Keywise Capital Management, Morgan Stanley and SAIF Partners.

*Figures exclude add-ons, mergers, grants, venture debt and secondary stock purchases.

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