Venture capital funding has roared back this year in Asia after a slowdown in 2016. Technology funding in India has also jumped, according to the ‘Asia Tech Investment Report’ by CB Insights, a data intelligence platform. Highlights from the report.
$106 billion invested across 5,019 deals since 2012:
In 2017 year-to-date, $19.3 billion of venture capital has been invested across 458 deals in Asian-headquartered tech companies. At the current run-rate deals are on pace to increase by 14% over 2016, while funding is on pace to grow by 132%, according to the report.
Tech unicorn creation drops from 2015 high
On an annual basis, the creation of private companies in Asia with a valuation of one billion dollars or more declined 26% YoY from its peak in 2015 and has not seen a major pick up thus far in 2017.
Sequoia Capital China and Tencent are top unicorn hunters
Tencent Holdings and Sequoia Capital China have invested in the most unique Asian technology unicorns, each with more than 10 unicorns in their portfolio.
62 Asia unicorns make up $283.5 billion in private value:
Of the 7 decacorns (firms valued at more than $10 billion) in Asia, six are based in China including Didi Chuxing, Xiaomi, China Internet Plus, Lu.com, Bytedance, and DJI Innovation.
500 Startups most active in Asia Tech investing:
Since Q1 ’16, 500 Startups has been the most active venture capital investor in Asia. The top three were rounded out by Matrix Partners China and East Ventures.
China’s largest Internet giants poised to benefit from unicorn exits:
Of the 46 unicorns in China, 21 (46%) are backed by four of China’s largest Internet giants – Alibaba, Baidu, JD.com, and Tencent – or their affiliates such as Ant Financial. Tencent has backed the highest number of Chinese unicorns at 15.
Mega-rounds in Asia tech bounce back in Q1 ’17:
The number of $50 million-plus financings to VC-backed Asia tech companies rose 39% on a quarterly basis in Q1 ’17 to hit a five-quarter high.
Tech funding jumps in value in India:
India-headquartered tech companies received nine fewer financings compared to Q4 ’16, but total capital invested in the quarter jumped 550%.
Notable financings included Flipkart’s $1.4 billion Series J, a $330 million Series H to Olacabs, and a $200 million Series A to Paytm E-Commerce.
Early stage deals decrease in India:
The share of early-stage (seed and Series A) deals declined through Q1 ’17, decreasing from 73% of deal share to 59%. Other deals, including corporate minority, convertible and other forms of venture capital, increased from 10% to 16%.
Internet deal-share declines in India:
India-based Internet firms received 64% of deal share in Q1, 4 percentage points lower than the previous quarter.
Mobile and telecom deal-share rose from 20% in Q3 ’16 to 31% in Q1.
Flipkart bags the most:
The next largest financing over the last five quarters was to Olacabs, raising $330 million in a Series H round also in Q1. Softbank Group provided the capital.
India e-commerce funding bounces back:
Flipkart, which raised $1.4 billion in March from the likes of Tencent, Microsoft, and eBay, helped funding to India’s physical goods e-commerce start-ups to jump to $1.75 billion in Q1 versus $948 million in 2016.
Paytm pushes up fintech funding in India:
While VC-backed fintech investment in India saw a lacklustre Q1, Softbank’s $1.4 billion investment into Paytm parent One97 Communications should put 2017 on pace for a new high in Indian fintech funding.
Outside of China, Tencent and Alibaba look to India for opportunities:
Alibaba, its affiliate Ant Financial, and Tencent have backed four of India’s private tech companies valued at more than $1 billion, according to the report.
