The first half of 2014 tells two stories for PE/VC investments. In Q1 2014, overall PE/VC investment fell, but then rose sharply in Q2, seeing a big leap in investment growth. In Q2 2014, came a historical breakthrough, with the total PE/VC investment figure across all industries hitting an unprecedented peak of US$17,612 million. Total PE/ VC deal volume in Q2 2014 rose 23% quarter on quarter (QoQ), while the total deal size climbed 200% QoQ.
Looking at overall investment in the TMT industry, deal volume in H1 2014 continued in the same vein as H2 2013, with solid figures. A total of US$2,304 million in investments were made in 245 deals in Q1. In Q2, the industry saw US$5,346 million of investments in 214 deals, a two and half year high, which was equal to the total investment figure for the TMT industry in H1 2013 and the equivalent to the overall PE/VC deal size across all industries in Q1 2014.
The report provides an in-depth overall analysis of PE/VC investments and exits by deal volume, deal value, quarter, stage of development and region. It also takes a detailed look at investments in the Technology, Internet and Telecommunications sectors. Due to the increasingly important role played by Mobile in terms of PE/VC investments, this report also features a section showcasing the lay of the land in the mobile segment.
For all the details, read or download the pdf of the full report, or check out the highlights below.
Comparison of overall PE/VC investments and TMT investments -- 2014
Deal value comparison in TMT sectors -- 2014
Deal value in the Technology sector 2012-2014
The biggest single investment took place in the Technology sector in H1 2014. However, single investments exceeding US$100 million mainly occurred in the E-commerce and Mobile sectors. Typical of an emerging economy, China saw a rapid development in its E-commerce sector.
The Mobile sector also saw more investment in H1 2014, a change from the previous trend of high deal volumes with low figures for single investments.
In H1 2014, the success of the Technology sector attracted large-scale investment, and the Telecommunications sector also saw a breakthrough in financing. Although the Internet sector did not perform as outstandingly well as the Technology and Telecommunications sectors, it performed well overall.
Beijing remains the centre of the Chinese TMT industry, with 61% of deals taking place in the region in H1 2014. The Beijing local government initiated policies that would relieve the tax burden, provide project guidance and encourage innovation to technology companies. In addition, universities in Beijing, such as Tsinghua, and large corporations have set up joint enterprises to promote innovation.