Fri, Mar 22, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Asia pushes its way to the forefront of venture capital

Tuesday, January 08, 2019
Opalesque Industry Update - 2018 has marked another record year for venture capital deal making, seeing 14,889 deals worth an aggregate $274bn.

Preqin expects this figure to rise by up to 5% as more information becomes available, but nonetheless 2018's total deal value has surpassed the previous high of $192bn set in 2017.

North America and Greater China - made up of China, Taiwan, Hong Kong and Macau - made up the majority of global activity, accounting for $113bn and $107bn in deal value respectively.

Nine of the ten of the largest deals announced in the year were for Asia-based companies, seven of which were in China. This includes the largest venture capital deal ever announced: the $14bn funding of Ant Financial Services Group in June. Global venture capital exit activity also had a record year, as 1,094 exits were made for a total of $165bn.

Christopher Elvin, Head of Private Equity: "2018 marks another year of record-breaking deal making in the venture capital industry. Asia in particular has seen further growth in venture capital-backed activity, seeing activity on pace with that of North America. Not only were the vast majority of the largest deals announced this year based in Asia, but we also saw the announcement of the largest venture capital deal ever, for Ant Financial Services Group. It looks like China and North America will continue to vie for the position of the foremost venture capital deal market in the coming months."

Key 2018 venture capital-backed deals

In 2018, 14,889 venture capital deals were announced for a record $274bn, marking the fifth consecutive year the industry has seen record-breaking aggregate venture capital-backed deal values.

Greater China accounted for a large bulk of activity, seeing 4,281 deals worth an aggregate $107bn. North America saw another 5,510 deals announced for a total of $113bn.

Nine of the 10 of the largest deals announced in 2018 were for companies based in Asia. Seven of those were based in China, including the largest-ever venture capital deal, the $14bn funding of Ant Financial Services Group.

2018 also saw the largest venture capital deal made in the US ever: JUUL Labs, Inc. was purchased by Altria Group, Inc. for just under $13bn.

Angel/seed deals made up 35% of deals announced in the year, while series A deals accounted for 28% of transactions.

Investments in the internet sector accounted for the largest proportion of deal value (29%), while internet and software made up the largest proportions of deals announced (22% and 23% respectively).

Series C deals saw a spike in average deal value, increasing from $48mn in 2017 to $82mn in 2018.

Venture capital-backed exits also saw a record 2018, as 1,094 exits were made for a total of $165bn.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Half of real estate investors are considering investing in opportunity zone funds (OZFs) in 2019[more]

    Laxman Pai, Opalesque Asia: A survey found that 51% of real estate investors were considering investing in opportunity zone funds (OZFs) in 2019, while a further 12% are interested in the longer term. A less widely publicized part of the 2017 Tax Cuts and Jobs Act in the US was the creation

  2. Renaissance founder says hedge fund has overcome Trump tension[more]

    From FT: Renaissance Technologies has overcome internal tensions sparked by the political views of its former co-chief executive Robert Mercer, according to the founder of the $60bn computer-powered hedge fund. Jim Simons, a former cold war codebreaker who is also chairman of the fund, said Re

  3. New Launches: WhiteBox duo plans to launch new event-driven distressed debt fund, UBP unveils credit long/short fund, Man GLG launches high yield fund for ex-Schroders manager Scott, Caisse de d?p?t et placement du Qu?bec launches $250m AI fund, Accel Partners raises $2.5bn across three funds[more]

    WhiteBox duo plans to launch new event-driven distressed debt fund From Bloomberg: Whitebox Advisors LLC colleagues Cindy Delano and Amit Patel have teamed up to form a hedge fund focused on event-driven and special situations that could arise as credit markets tighten. Invictus Glob

  4. Morgan Creek Digital makes strategic investment in Ikigai Asset Management[more]

    Laxman Pai, Opalesque Asia: Morgan Creek Digital Assets (MCDA) has made a major new investment in another crypto-related firm. The hedge fund is committing to a new fund launched by Ikigai Asset Management (IAM). MCDA, founded by Mark Yusko, Jason A. Williams, and Anthony Pompliano, said in a

  5. People: Head of top hedge fund association to step down, Former State Street Exec to lead Equity Trust, Affiliated Managers names Thomas Wojcik next chief financial officer, MoraBanc restructures following Goldman Sachs partnership, Franklin Templeton expands emerging markets equity team[more]

    Head of top hedge fund association to step down From The Hill: Former House lawmaker Richard Baker, who has led the Managed Funds Association (MFA) for more than a decade, announced Wednesday that he will step down at the end of the year. MFA, which represents the hedge fund industr