Zero2IPO, a China VC/PE research firm, reported that 7 China-focused venture capital and private equity funds raised US$3.95 billion in August. In the second quarter of this year, 10 PE funds raised US$12.022 billion.
For the month of August, out of 16 Chinese enterprises that secured investments from 34 VC/PE firms, 14 companies disclosed a total amount of US$365.03 million raised with an average amount of US$26.07M. The number of deals declined 27.3% and the amount invested fell by 72.4% from last month.
Rising incomes and demand continue to drive China’s strong consumption trends, as the Chinese Services industry took the biggest slice of the VC/PE pie for the month.
Three Services deals worth 44% of total financing raised include two from the booming China retail sector. The biggest deal for August was Orient Home, a domestic houseware commercial retailer, securing US$72.78 million from ARC Capital Holdings Ltd.
China’s VC/PE market grew significantly in the second quarter of this year. 159 Chinese enterprises secured VC funding between April and June, up 31.4%, and 143 companies among them disclosed funds of US$1.2 billion, up 73.5% year-on-year.
More than 30 PE firms invested US$2.6 billion in 37 mainland enterprises. Most of the PE investment went to central and western regions and new energy projects.
