The number of new fund cyclical decline, Hillhouse fast layout venture capital this month, shot 21
Editor’s note: This article is from the micro-channel public number “Beyond the J-curve” (ID: beyondthejcurve), Author: Beyond the J curve.
Core discovery
Only 1% VC/PE institutions completed the establishment of 4 or more new funds, and Shanghai Guosheng Capital received 4 new funds in Qingdao, Taizhou, etc.< strong>State-owned assetsHelp
From the data of the past year, the number of investment cases this month is 460. Due to cyclical effects, the investment activity is at a historical low level
Hillhouse Ventures, which has been established for more than a year, has a rapid layout. This issue has launched 21 companies, which are extremely active, and the projects are concentrated in the medical and IT fields
Part I Analysis of VC/PE market fundraising
·Under the normalization of the epidemic, the number of newly established funds has returned to historical levels
In February 2021, the number of newly established funds in China’s VC/PE market totaled 472, a decrease of 45% from the previous month and a year-on-year increase of 193%. The number of newly established funds dropped periodically this month. In addition, the new crown epidemic broke out in February last year, which had a great impact on the entire fundraising market. Now that the epidemic has become normal, the number of newly established funds this month has returned to historical levels.
In February 2021, 397 VC/PE institutions completed the establishment of new funds, and only 12% of VC/PE institutions have newly established funds with 2 or more funds. Institutions with a large number of newly established funds this month include Shanghai Guosheng Capital, Qinzhi Capital, Fortune, Hillhouse, etc.
·A brief introduction to the newly established fund LP-based on ShanghaiSheng Capital as an example
In February 2021, only 12% of VC/PE institutions have newly established multiple funds, of which only 1% have established 4 or more funds, including Shanghai Guosheng Capital.
Shanghai Guosheng Capital was unveiled in December 2017. Guosheng Group, as the largest shareholder of Guosheng Capital, holds 30% of the shares. In this issue, select 4 new funds established by Shanghai Guosheng Capital to briefly describe the relevant LP data.
The data found that the funder behind the Shengrong Chuangzhi Industrial Fund is the State-owned Assets Administration of Qingdao West Coast New Area; the funder behind the Taizhou Shengren Fund is 8 natural persons, the Zhejiang Provincial Department of Finance and the Taizhou State-owned Assets Supervision and Administration Commission; the other two funds are behind The investors are mostly enterprises held by natural persons. In addition, Zhou Daohong, general manager of Shanghai Guosheng Capital, is the actual controller of Shanghai Shengpu Enterprise Management Partnership.
·The number of newly established funds in Zhejiang continues to be active last month, leading the country
In February 2021, 472 newly established funds were mainly distributed in Zhejiang, Guangdong and Shandong, and the number of newly established funds was more than 50. In addition, the newly established funds in Jiangxi, Jiangsu, Fujian, Anhui, Hunan, and Shanghai are relatively active in this period, with more than 10 funds. Let’s look specifically at Zhejiang, Guangdong, and Shandong:
In February, the registration of private equity and venture capital funds in Zhejiang Province continued to be active last month, leading the rest of the country. A total of 111 funds were newly established. Among them, the newly established funds are concentrated in Jiaxing, Hangzhou, Huzhou and other places.
In February, Guangdong Province ranked second in the number of private equity and venture capital funds registered, and a total of 99 funds were newly established. Among them, the newly established funds are concentrated in Shenzhen, Zhuhai and other places.
In February, Shandong Province ranked third in the number of registered private equity and venture capital funds, and a total of 79 funds were newly established. Among them, the newly established funds are concentrated in Qingdao.
·Focus on completing the fundraising case
On February 24, 2021, Hillhouse Ventures announced on the first anniversary of its establishment that it has completed an independent fundraising in USD and RMB with a combined scale of more than 10 billion yuan. The LP behind it includes mainstream institutional investors such as university endowments, pension funds, sovereign funds, funds of funds, and family offices.
On February 16, 2021, Hamilton Lane announced the final closure of the fifth phase of the Hamilton Lane Secondary Fund V (Hamilton Lane Secondary Fund V). LP includes pension funds, Taft Hartley plans, sovereign wealth funds, endowments, foundations, family offices, qualified high-net-worth individuals, and other financial institutions from the Americas, Europe, the Middle East, Africa, Asia and Israel.
In addition, Qingxin Capital and China Merchants Venture Capital have completed the fundraising this month. In addition, the new fund unlimited fund “SEE Fund” initiated by Yao Song, the original founder and CEO of “Shenjian Technology” and a graduate of Tsinghua Electronics Department, has completed the first fund raising of 200 million yuan this month. The fund will focus on the field of hard-core technology, centering on Tsinghua Electronics and information related fields, and aiming at the early projects of the three sub-tracks of “semiconductor, pan-electronic information technology and industrial Internet”. LP includes Sequoia China, Hillhouse, Matrix Partners China, CPE, Zhen Fund, Fengrui Capital, Ant Group, Zhongguancun Science City Science and Technology Innovation Fund, ByteDance, Tsinghua Holdings, Tsinghua Electronics Institute Weixin Fund, Tianyancha, etc.
Part II VC/PE market investment analysis
· During the Spring Festival holiday, there is always VC/PE institutions have never stopped investing
In February 2021, the number of investment cases was 460, slightly lower than the same period last year, a slight increase from the previous month; the investment scale was US$20.268 billion, a sharp increase of 177% over the same period and a 27% increase from the previous month.
The VC/Pe investment market has recovered this month. However, from the data of the past year, the overall activity of the investment market this month is still at a historically low level, which is in sharp contrast with the investment market in the post-epidemic era last year. Of course, the outbreak of investment enthusiasm in the late period of the epidemic is combined with the cyclical impact of the beginning of this year. This led to the fact that the investment market shown by the data level this month is not active enough. It is worth mentioning that the transaction scale this month far exceeds the average level of the past year. The head effect is especially obvious this month. There are still a large number of projects that have not received capital attention.
This month coincides with the Spring Festival holiday, and most of the transactions were completed before the holiday. At the same time, on New Year’s Eve, Hillhouse Ventures led the investment in the Series A financing of Sino-American Ruikang, showing that it was quite dedicated.
·VC/PE institutions spend 74% of the money and only pay for 10% of the projects
The investment scale of 45 cases was over 100 million U.S. dollars, accounting for 9.8% of the total amount of this month. The total investment scale of 45 cases was 15.054 billion U.S. dollars, accounting for 74.3% of the total investment this month. VC/PE institutions spend 74% of the money and only pay for 10% of the projects.
In the same period last year, the impact of the new crown epidemic was superimposed on the Spring Festival holiday, the resumption of work and production across the country was delayed, the investment market was upset, and large-scale transactions were rare. This also led to a significant increase in the volume of transactions this month with a slight decline in the number of transactions year-on-year The direct cause.
·Large transactions get together, and Kuaishou listing has been subscribed for over 2 billion US dollars of cornerstones
In February 2021, large transactions will gather together. Two transaction cases of more than US$1 billion occurred in the field of mergers and acquisitions and cornerstone investment. Specifically, Hillhouse Capital acquired a 6% stake in Longji shares, with a transaction amount of US$2.452 billion; Kuaishou was listed on the Hong Kong Stock Exchange and received a total of US$2.029 billion from Temasek, GIC, IVZ and other cornerstone subscriptions. In addition, Hillhouse Capital has repeatedly appeared on the list of targeted investors for non-public offerings of listed companies.
·CDH leads the investment in the angel round project “Increased Biology”
In February 2021, China’s VC/PE market investment end transaction rounds were concentrated in the A and B rounds. In the C round, there were hundreds of millions of dollars in large-scale transactions, involving projects such as Momenta and Clover Biology.
CVC investments such as Tencent, Bytedance, and Huawei have been relatively active this month. In addition, the veteran PE CDH has completed the lead investment in the angel round project “Increased Bio” within a month.
· Hillhouse Ventures can invest up to 5 consecutive projects a day this month
On February 24, 2020, Hillhouse officially launched its independent VC brand, Hillhouse Ventures. This month, Hillhouse Ventures has maintained a consistent investment speed, accumulatively investing in 21 projects within 28 days, and up to 5 consecutive investments within one day. It is reported that Hillhouse Ventures has completed an independent fundraising of more than 10 billion US dollars and RMB in the first year since its establishment, and over 200 projects have been launched. Hillhouse Ventures, which has a surplus in hand, is becoming an extremely active force in the venture capital market.
Hillhouse Ventures has a layout in the medical, IT, AI and consumer sectors this month, but it is concentrated in the medical and IT sectors.
·The investment side is more active than last month, and the growth is concentrated in the medical field
The number of investment cases in China’s VC/PE market this month has increased compared with the previous month. From an industry perspective, the growth is concentrated in the medical field. Data shows that the number of investment cases in the medical field this month increased by 93% month-on-month. At the same time, investment activity in other fields has not changed much or even declined slightly.
A total of 110 investment cases in the medical field this month were dominated by companies from Beijing, Shanghai, Jiangsu, Guangdong, and Zhejiang, accounting for 80% of the total. In addition, there were also some investment cases in the medical field in Sichuan, Shandong, and Hubei this month.
Investment enthusiasm in the medical field is high this month. The three major sub-tracks of medicine, medical equipment, and medical technology account for 80% of the total investment. Among them, the medical field is still the most sought after by capital, with the number of cases accounting for as high as 42%, such as Forty-six pharmaceutical companies including Jiachen Xihai, Jiain Biological and Beimei Pharmaceutical have completed a new round of financing.
Data description
For the convenience of readers, the data source, statistical caliber and exchange rate conversion in the report are now explained.
Data source
The source of the chart data in this report is CVSource’s investment data
Statistical caliber
Newly established funds: newly registered funds within the statistical period
Completion of fundraising: within the statistical period, announce the fundraising completed
Funding scale: Calculate the actual amount publicly disclosed in the market, estimate the amount of undisclosed specific value and include it in the statistics
Exchange rate conversion
All fundraising scales and investment scales involved in the report are calculated according to the exchange rate on the day of fundraising or investment, and converted into U.S. dollars for statistics