Venture capital transactions in Asia 47% of global deals in 2017: report
New Delhi: Global venture capital transactions witnessed significant uptrend this year with deals worth $47 billion in the April-June quarter, says a report.
The largest proportion of deal value came from Asia, which contributed 47% to the deal value this year so far, the report by alternative investment research firm Preqin said. Venture capital deal value bounced back during the first half of 2017, with a record-setting second quarter which saw aggregate deal value rising to $47 billion, the report said.
Since 2013, Asia’s share of the number and aggregate value of venture capital deals globally has grown consistently and as of July 2017, Asia accounted for 47% of deal value for 2017 year-to-date—the most of any region, as well as 31% of all deals, it said.
“The majority of deals in the region (Asia) occurred in Greater China, with 901 transactions representing $28 billion in aggregate deal value, followed by India with 448 deals for $6 billion,” said the latest Preqin Private Equity & Venture Capital Spotlight report.
Within Southeast Asia the majority (94) of transactions took place in Singapore, while Indonesia accounted for the largest proportion ($1.4 billion) of deal value, the highest in the Far East. In terms of venture capital exits, Greater China has generated the majority ($7.6 billion) of capital from exits since the start of 2016, while India has seen the most exits (144) over the same period, the report added.
Moreover, going forward investor appetite is also bullish. Majority (85 %) of Asia headquartered investors are targeting Asia-focused funds in the next 12 months, while more than half of North America-based investors also plan to target the region (Asia), followed by a third of those based in Europe.
“Among all investors surveyed, 47% indicated they would be targeting Asia-focused funds over the next 12 months,” the report said.
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