Venture Capital Deals 2013 – 2015 YTD: Early Stage Chinese Deals on the Rise – October 2015

by Anthony Leung

  • 20 Oct 2015
  • PE
  • VC

The 2015 Preqin Global Private Equity & Venture Capital Report details the proportion of the number and aggregate value of venture capital deals by stage for 2013 and 2014. Having emerged from the third quarter of 2015, this blog examines the data for 2015 YTD, looking at noticeable shifts or changes so far this year, highlighting particularly notable growth in the region of Greater China.

As was the case in the previous two years, angel/seed financings collectively account for a 24% market share as seen in the chart above, forming the largest proportion of the number of venture capital deals in 2015. Of the 1,791 angel/seed financings completed this year, 42% occurred in North America. However, this is a considerably smaller contribution than seen in 2014 and 2013, when the region accounted for 57% and 60% respectively. The market share of angel/seed financings in Europe, as a proportion of the global total, has also fallen from 20% in 2013 to 13% in 2015 YTD. In contrast, the number of angel/seed financings in Greater China has grown year-on-year, with 338 financings in 2015 YTD, already exceeding the 249 witnessed in 2014 and accounting for 19% of the global total, compared with 10% in 2014 and 5% in 2013.

Series A financings have contributed 19% of all venture capital deals in terms of number in 2015, up four percentage points from 2014. Such deals account for 10% of the aggregate deal value of all venture capital deals in 2015 YTD. Preqin’s Venture Deals Analyst database has recorded six Series A financings in 2015 valued at $100mn or greater. Four of these deals have occurred in Greater China, including a $250mn round for Ucar, a provider of chauffeured car services. 

Series B financings account for 10% of venture capital-backed deals in 2015 so far, constituting 13% of the aggregate deal value, as shown in the chart above. In terms of proportion, this particular investment stage exceeds 2013 and 2014 under both metrics. In absolute terms, the aggregate deal value of Series B financings is already greater than that of 2014, having risen by 10% to $16.3bn.

Although the proportion of deals represented by Series D and later financings has remained at 3% for the past three years, aggregate deal value has been on the rise, buoyed by significant rounds in companies such as Uber Technologies, Lyft and Spotify.

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