MoneyTree™ China TMT Report -- Q1/Q2 2013

Welcome to the first edition of our MoneyTree™ China report! Covering the first half of 2013, this report focuses on private equity and venture capital (PEVC) investments in the Telecommunications, Media and Technology (TMT) industry. The report also takes a detailed look at investments in IT, Internet and Telecommunications and Mobile Internet, the three most popular sectors of the TMT industry for PEVC investors.

Macroeconomic volatility led to a significant decline in both the volume and size of PEVC deals in the period studied. But while investments decreased as a whole, the TMT industry's share of total PEVC investments showed a significant rise. And while the TMT industry has fared relatively well, the Internet, Telecommunications and Mobile Internet sectors have performed significantly better than others. For all the details, read or download the pdf of the full report, or check out the highlights below.





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Comparison of PEVC investments and TMT investments 2012-2013 (Deal value)
Comparison of PEVC investments and TMT investments 2012-2013 (Deal value)
Comparison of PEVC investments and TMT investments 2012-2013 (Deal volume)
Comparison of PEVC investments and TMT investments 2012-2013 (Deal volume)
Deal value in TMT sectors 2012-2013
Deal value in TMT sectors 2012-2013

In Q1 2013, China saw a total of 257 PEVC investments across all industries, totalling US$3.24 billion. In Q2, there were a total of 259 PEVC investments totalling US$6.68 billion, So, while deal volume was just about flat, value went up by 106%.


In Q1 2013, there were 134 PEVC transactions in the TMT industry, accounting for just over half (52%) of total volume. The total investment amount---US$1.07 billion---represented 33% of PEVC deal value. TMT's share of deal volume grew to 66% in Q2.


"An increasing number of traditional enterprises are beginning to leverage their competitive advantage and increase their market share through the Internet, this is why the TMT industry has proven relatively robust in a generally unfavourable investment environment." -- Marcel Fenez, Global Entertainment and Media Industry Leader and PwC China TMT Leader


"The huge amounts invested into the Internet sector are a reflection of industry leaders' need for financing. The substantial investments into these major industry players have resulted in consolidation in the industry, fierce competition between rivals and an expansion of market share, an enhancement of their business models and an increase of capital market value." -- Jianbin Gao, PwC China Technology Industry Leader


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How the money flows in China's TMT industry

Jianbin Gao, PwC's Technology Industry Leader in China, talks about Q1/Q2 2013 private equity and venture capital investments in the telecoms, media and technologies industries in China