China's VC investment market weak growth is expected

Recently, in the global macro-economic and capital market downturn, China's VC market continued weak, the two quarterly disclosure of VC investment continued to decline, according to China's leading financial information services agencies Chinaventure Investment Group statistics, the second quarter of the disclosure of VC case 74, The chain fell 20.4% and reached the lowest quarterly level since 2010. With the latest round of funding of millet company 216 million dollars, the total amount of investment in the quarter rebounded slightly. At the same time, the financing case once again highlighted the value of mobile Internet investment, the field of investment activity is expected to continue to grow, as for its follow-up development, we still have to wait and see.

VC less active in the second quarter of small investment scale rebound

According to the Chinaventure Investment Group's financial data products Cvsource statistics, the second quarter of 2012 disclosed venture capital (VC) case 74, compared with the last quarter fell 20.4%, investment activity reached nearly two years of the quarterly low; Disclosure of total investment of 899 million U.S. dollars, compared to the last quarter growth of 24% (see Figure 1), the main reason for the growth is the millet company's third round of financing completed, 216 million U.S. dollar financing scale since 2012 the largest volume of VC investment cases. However, compared with the same period in 2011, the total investment in this quarter still has a significant decline in the amount and amount of investment has declined by about 70%. The decline of VC investment in China in the past year began to appear after the second quarter of 2011, and has continued to this day.

The average single investment in the quarter was $12.15 million trillion, which grew by 55.9%, and the average single investment was higher than the average of 2010 to 2011 (see Figure 2). The main reason is the millet company 216 million dollar financing case, in addition, pudding Hotel, oriental Popular (Le Bee Network), Temple Library, the United States and Lele Furniture network completed financing, the scale of more than 40 million U.S. dollars, jointly pushed up the average level of financing this quarter. Internet investment tends to cautious millet financing good mobile internet

In the second quarter of 2012, China's venture capital involved 13 sectors, of which the Internet remained the most active investment industry, with the disclosure of investment cases of 21, accounting for 28.4% of the total quarterly cases, followed by the manufacturing and it industries, and the disclosure of 11 and 9 cases respectively. The amount of financing, by virtue of the case of millet company financing, telecommunications and value-added industries total investment amounted to 228 million U.S. dollars, the first in all industries, followed by the Internet and the chain of business, respectively, the disclosure of 1.04 and 78 million U.S. dollars (see Figure 3, Figure 4).

In the Internet subdivision industry, E-commerce is still the most active area of financing. Benefiting from the continued growth of demand in China's online shopping market, electronic commerce is still hit by the investment favored, but after 2011 years of the second half of the financing bubble, investors tend to be cautious, the recent cases are more than the relatively mature project B-round investment, such as Jiapin Network, wine United States network, the United States Lele Furniture network, wheat bag, temple and so on.

Since 2012, the mobile Internet investment continued to be active, millet company third round of financing has become one of the most landmark events. June 23, Millet company to complete a new round of financing of 4 billion U.S. dollars, turnover amounted to 216 million U.S. dollars, this size not only to create the highest VC investment record since 2012, but also among China's internet and mobile Internet industry financing scale TOP10, in the seventh place (see table 1). Millet as a company with internet genes, subversion of the traditional mobile phone manufacturing industry, the first proposed through software and network services to build its profit model, a new round of financing to verify the recognition of this model, while highlighting the entire mobile internet industry huge investment value. In this financing event, China Mobile Internet industry Investment scale is expected to create a peak.

B-round financing accounted for more than the growth of the venture into the North wide

From the investment rounds of the market this quarter, disclosure of the investment case of a round of 39, investment scale of 216 million United States dollars, respectively accounted for 52.7% and 24.1%, compared to 2011 and the first quarter of 2012, a round of investment accounted for a decrease, while the corresponding B and B rounds of investment accounted for increased. Among them, the B-round investment amounted to 25, the investment amount amounted to 330 million dollars, respectively accounted for 33.8% and 36.8%; C Round and C rounds of investment cases total 10, the total investment amounted to 352 million U.S. dollars. The overall extension of the investment round was the main reason for the rebound in investment in the quarter and the growth of the average single investment, while also demonstrating a more cautious investment attitude on the part of investors.

To obtain the regional distribution of venture capital Enterprises, "North Canton" is still the most active area of investment, the distribution in these three regions accounted for 60.8% of the investment cases. Among them, the investment cases and investment scale in Beijing were the first, the disclosure case 23, investment amount of 432 million U.S. dollars, accounted for 31.1% and 48.1% respectively. Second, Guangdong and Shanghai respectively, the disclosure of investment cases 12 and 10, investment amounts of 99 million and 117 million U.S. dollars (see Figure 5, Figure 6). In terms of investment size, Zhejiang province is second only to Beijing, with a total investment of 117 million U.S. dollars, with the main case being the Pudding Hotel headquartered in Hangzhou, which completes the second round of financing in 55 million dollars this quarter.

This quarter, the Midwest region financing activity is not high, Anhui, Chongqing, Hubei respectively disclosed investment cases 3, 2 and 2, other areas are disclosed 1 or no case disclosure.