In the second quarter of 2019, the activity of the investment and financing market in the Internet industry declined year-on-year, the development of the Internet industry slowed down, and the market gradually returned to rationality. In the field of Internet segmentation, the field of e-commerce has received much attention.
Editor’s note: This article is from WeChat public account “Beyond J Curve” (ID: Beyondthejcurve), the author is casting a research institute.
“Extend your reading with data”, this period beyond the J curve to bring the 2019 Internet industry investment and financing report. In the second quarter of 2019, the activity of the investment and financing market in the Internet industry decreased year-on-year. The number of financing cases was 172, down 50.00% year-on-year; the financing scale was US$5.059 billion, down 27.07% year-on-year. See below for more details:
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1. Internet financing activity has decreased year-on-year,E-commerce has received much attention
In the second quarter of 2019, the activity of the Internet industry investment and financing market declined year-on-year, the development of the Internet industry slowed down, and the market gradually returned to rationality. In the field of Internet segmentation, the field of e-commerce has received much attention.
1Internet financing activity decreased year-on-year
In the second quarter of 2019, the activity of the investment and financing market in the Internet industry decreased year-on-year. The number of financing cases was 172, down 50.00% year-on-year; the financing scale was US$5.059 billion, down 27.07% year-on-year. The development of the Internet industry has slowed down, the level of financing activity has dropped rapidly, and the industry has entered a new era of transformational adjustment and kinetic energy conversion. Internet companies have accelerated the pace of transformation and upgrading of traditional businesses. In the segmented areas, e-commerce, big data and other hotspots are actively financing.
2Internet fine Number and size of financing in different areas
3 second quarter Internet financing cases
In the second quarter of 2019, in the Internet segment, the e-commerce field was highly active, with 69 financing cases and a financing scale of $2.011 billion. Top 1 of the financing scale is the 750 million US dollars D round of financing, and the funds obtained in this round of financing will be mainly used to further strengthen the technical advantages in the field of deep learning and accelerate the commercialization of artificial intelligence solutions. In addition, the funds will be used to recruit AI talent and promote the company’s international operation.
2,The Internet M&A market is returning to rationality,The transaction size has risen dramatically
In the second quarter of 2019, the number of M&A transactions in the Internet industry showed a downward trend year-on-year, and the M&A market gradually returned to rationality. The M&A market announced that the scale of the transaction and the completion of the transaction reached a new high in recent years. The surge in scale was mainly affected by large-value transaction cases.
1 Announce a significant increase in the size of the deal
In the second quarter of 2019, the Internet industry M&A market announced 49 transaction cases, down 50.00% year-on-year; disclosure of mergers and acquisitions amounted to US$7.94 billion, up 34.58% year-on-year. In 2019, the number of M&A cases showed a downward trend as a whole, but from the perspective of the transaction amount, the announced mergers and acquisitions amounted to a market downturn in the first quarter, which turned into a strong development wave. Affected by the tightening of the capital market environment, the Internet industry market is increasingly competitive.
2Internet M&A market returns to rationality
In the second quarter of 2019, the number of transactions completed in the Internet industry M&A market was 27, down 50.00% year-on-year; the amount of mergers and acquisitions was disclosed as US$6.639 billion, up 45.25% year-on-year. The surge in the number of completed transaction cases in the second quarter of 2019 was mainly affected by large-scale transaction cases such as the full acquisition of Shengyue Network by Century Huatong. The Internet industry has strengthened resource integration, and large-scale mergers and acquisitions have occurred frequently.
3 Complete the number and size of mergers and acquisitions by field
4nd quarter of the Internet sector key mergers and acquisitions
Trading scale Top1: Century Huatong wholly acquired Shengyue Network.
Century Huatong invested US$4.358 billion to purchase 100.00% equity of Shengyue Network by issuing shares and paying cash. The acquisition of Shengyue Network will further clarify the strategic layout of Century Huatong’s continuous development of online game business and expand Century Huatong’s game business market share and rich game product types.
3,9 Internet Chinese companies complete IPOs,the number and size increase
In the second quarter of 2019, there were nine Internet-based Chinese enterprises completing IPOs. The IPOs of Internet companies in China have shown an upward trend both in terms of quantity and total size of fundraising. Lakara (300773.SZ) officially landed on the A-share GEM, with an issue price of 33.28 yuan per share and a fund raising of 1.332 billion yuan.
The number and size of 1IPO financing has increased
In the second quarter of 2019, nine Internet-based Chinese companies completed IPOs, up 125.00% year-on-year; the fundraising scale was $887 million, up 44.31% year-on-year. Regardless of the number of IPOs in China or the total size of fundraising, the IPO of Internet companies in China has shown an upward trend year-on-year. Up to now, nearly half of the companies that have entered into the registration of the Science and Technology Board are Internet-related companies. The institutional arrangement of the Science and Technology Board is conducive to the choice of Internet companies for domestic listing. The Science and Technology Board has positive significance for supporting the development of science and technology enterprises, especially for the new economy such as the Internet, such as entrepreneurship, innovation and investment and financing.
2IPO financing case
Trading scale Top1: Lara’s Shenzhen Stock Exchange listing on the GEM was raised 13.32 billion yuan.
On April 25, Lakara (300773.SZ) officially landed on the A-share GEM. Lakara is the first third-party payment company in the Mainland to obtain a license from the central bank. Lacala’s previous businesses include: merchant receipt, personal payment (offline payment, mobile payment) and value-added financial services. In the fourth quarter of 2016, the value-added financial business has divested the IPO main body, focusing on the main business, focusing on third-party payment business with the core of corporate acquiring.
4,Review of Internet industry hotspots in the second quarter of 2019
Industrial Internet Identity Resolution Secondary Node (Nantong) officially launched
April 23, 2019, the national industrial Internet logo analysis secondary node (Nantong) (hereinafter referred to as “Nantong secondary node”