China VC / PE market data report in the first half of 2020 From Hit the mark

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The following is the China VC / PE market data report in the first half of 2020 From Hit the markrecommended by recordtrend.com. And this article belongs to the classification: Investment & Economy, research report.

Review of the development of VC / PE fundraising market in China in the past ten years

1. After experiencing explosive growth, the company has fully recovered and entered the new normal of fund-raising

Reviewing the development of China’s VC / PE market in the past decade, the number and scale of newly established funds in China’s VC / PE market from 2010 to 2014 have developed steadily;

From 2015 to 2017, the number of newly established funds soared to more than 10000, and the scale of subscription increased;

Since the beginning of 2018, China’s VC / PE market has been in full swing due to the impact of stricter supervision, new regulations on asset management, and the effectiveness of financial deleveraging;

In the first half of 2020, affected by the outbreak of epidemic, VC / PE fund-raising market under the background of capital cold winter was hit hard again.

2. An overview of the fund raising of “Top 250” institutions in the 2015-2019 investment list shows a significant head effect

From the fund-raising situation of “Top 250” listed institutions in recent years, the total fund-raising of head institutions has accounted for a large part of the total market size, especially in 2018 and 2019, the proportion increased to 61% and 50%.

Under the situation of difficult fund-raising in the cold winter of capital, the head office has gained more capital favor by virtue of its brand advantages, industry experience and excellent performance, while many small and medium-sized institutions are still in the difficult position of fund-raising and polarization is obvious, and the institutions are facing a deep reshuffle.

4. The growth rate of government guided funds slowed down, and East China led the country

As of the first half of 2020, 1379 government guidance funds have been set up in China, with a total scale of 2228.7 billion yuan. From the perspective of the ten-year development of the guidance fund, since the introduction of various policies and plans in 2015, the growth of the government guided fund has accelerated. In 2016, the total scale of the government guided fund broke through the trillion level mark, and the number of funds reached more than 1000 in 2017. Since 2018, the growth rate of the government guided fund has slowed down and entered a steady growth stage. In terms of geographical distribution, the development of government guided funds in East China leads the country, with North China and South China ranking second and third respectively. The state has also actively established government guidance funds in remote areas to boost the transformation and upgrading of local industrial development.

3、 The trend and change of vc/pe investment market in China in the past ten years

1. Analysis on the investment quantity and scale of China’s VC / PE market in recent ten years

From 2010 to 2013, the development of VC / PE market in China was relatively stable and slow;

From 2014 to 2018, China’s private equity investment and venture capital entered the peak period of rapid development. Institutions found new value, explored emerging industries, and supported new business forms, with high investment activity;

In 2019, with the increasingly strict regulatory day, the effectiveness of the new asset management regulations gradually emerged, and the VC / PE investment market ended its irrational prosperity and entered a full-scale callback period;

In 2020, affected by the epidemic situation, all venture projects and investment institutions are facing unprecedented survival crisis. More enterprises begin to seek financing or listing, and more institutions slow down the pace of investment. In 2020, “survive” has become the common goal of all participants in the VC / PE market.

2. The average value of single investment increased year by year, reaching a new high in the first half of 2020

Judging from the total scale of China’s VC / PE investment transactions, although the situation of VC / PE investment transactions is grim in the first half of 2020, the average value of single investment has not decreased.

Looking at the market situation in the past decade, since 2016, the average value of a single VC / PE investment has risen sharply for four consecutive years. In the first half of 2020, the average value of a single transaction has reached US $32.1 million, a 10-year high, with a month on month increase of 56%.

3. The proportion of small investment has been sharply reduced, and the proportion of large-scale star projects has increased

Looking at the market situation in the past ten years, the proportion of small cases with the level of less than $1 million has increased for five consecutive years since 2010. However, taking 2015 as the watershed, the proportion of small amount cases has sharply shrunk, which has been less than 7% in the first half of 2020, while the proportion of large cases of 10 million US dollars and 100 million US dollars has increased continuously, increasing to 50% in the first half of 2020.

It can be seen that in the past five years, China’s VC / PE market has developed more and more mature, and the institutions have gradually reduced irrational venture capital and small amount investment. In the selection of projects, they return to the source of value investment, and are more committed to excellent investment and precise investment. The competition for high-quality projects is increasingly fierce.

4. The proportion of investment for start-up projects is reduced, and the mature projects are more popular

From the perspective of the development stage of the invested projects, since 2014, mass innovation and mass entrepreneurship have stimulated the investment enthusiasm of VC / PE market, and institutions have actively arranged emerging fields to seize market share, so the proportion of start-up companies invested in 2014 and 2015 increased;

After 2016, the market as a whole has gradually returned to rational normal from rapid development, institutional investment has become increasingly cautious, and early venture capital has decreased year by year;

By the first half of 2020, the proportion of start-up projects is as low as 11%, while the proportion of expansion and profit-making projects is 67%. Mature projects are more popular.

5. The proportion of early investment decreases and the investment stage moves backward

From the perspective of subdivision investment rounds, from 2015 to the first half of 2020, the proportion of seed round & Angel round investment in all transaction rounds decreased year by year, while the proportion of round a ~ round C investment increased year by year.

From the overall trend, the early investment of seed angel investment round decreased sharply, and the overall investment stage shifted backward, which also reflected the investment strategy that investment institutions gradually adopted to avoid risks, strive to optimize investment and focus on value investment.

6. The industry has been hit in an all-round way, and medical and online education are facing opportunities

In the first half of 2020, all walks of life, especially the catering industry, will be affected by the outbreak of labor-intensive tourism and entertainment industries.

From the perspective of industry investment, VC / PE investment in various industries has also decreased to varying degrees; from the perspective of financing scale, due to the new opportunities of epidemic medical health and online education, the total scale of financing has increased instead of falling; in addition, domestic high-end manufacturing fields mainly focusing on chip and other hard technologies have begun to make efforts, and the financing scale has increased by 91%.

Looking at the development of VC / PE market institutions in the past decade, VC / PE market has entered the “fast track” since 2014, with endless opportunities and outlets emerging. A large number of VC / PE investment institutions have entered the board, and the participating institutions have grown explosively. From 2016 to 2018, institutional giants began to emerge, and the head effect began to show;

8. The degree of participation in institutional investment has been reduced, and the focus of some institutions has shifted to post investment

In 2019, with the introduction of new regulations on asset management, the cold winter of capital is coming, the new capital is insufficient, the stock capital is gradually exhausted, the ammunition for sustainable investment is scarce, and the investment activities of institutions are greatly reduced. What’s more, some small and medium-sized institutions are unable to resist the cold wave of capital and have already left the market;

The outbreak of the epidemic in early 2020 will again have a huge impact on the VC / PE market, and the offline business development is limited. Some institutions are forced to shift their focus to post investment management, and try their best to help the invested projects to resist the impact of the epidemic.

9. The activity of institutional investment has been weakened and polarization has been intensified

From 2010 to the first half of 2020, the proportion of institutions with more than 30 investments reached the peak, accounting for 3%. After 2016, the proportion of institutions with active investment decreased gradually, and this proportion reduced to 2% in the first half of 2020;

The trend of resources converging to the leading institutions is becoming more and more obvious. The investment institutions with brand effect attract a lot of resources in the market, and the performance of raised investment gradually widens the gap with the small and medium-sized institutions. Especially under the double impact of the cold winter of capital and the epidemic situation, the market tests and discriminates the institutions, and the survival of the fittest mechanism plays a fundamental role, and polarization is intensified.

10. Vc/pe active investment institution TOP10 in the first half of 2020

The top 10 VC / PE companies with the most active investment in the first half of 2020 are listed. Tencent investment wins the first place with 60 cases, Sequoia China ranks second with 54 and Shenzhen Venture Capital ranks third with 36. In addition, Yida capital, hillhood capital, Jingwei China and other head institutions were listed.

4、 IPO performance of Chinese VC / PE firms in the first half of 2020

In the first half of 2020, 122 Chinese enterprises with VC / PE background will be listed, and the IPO penetration rate of VC / PE institutions will be 65%. Among them, the IPO penetration rate of VC / PE Institutions in Shanghai Stock Exchange and Shenzhen stock exchange is as high as 79% and 76%, and that of NASDAQ VC / PE Institutions is 63%.

Hillhouse capital took part in 8 IPOs, with Dachen and Shenzhen Venture Capital in the top three.

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