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In July 2019, a total of 46 funds entered the fundraising phase, with a total target fundraising size of US$20.128 billion and an average single target size of US$428 million.

Editor’s note: This article is from WeChat public account “Beyond J Curve” ( ID: beyonddjwarve).

“Extend your reading with data”, this period beyond the J curve brings the July 20th VC/PE market report. In July 2019, a total of 46 funds entered the fundraising phase, with a total target fundraising size of US$20.128 billion and an average single target size of US$428 million. See below for more details:

Directory

1. Heading, oligarchy, and fundraising for multiple heads

2. The big wave in the venture capital market, financing transactions continue to be low

3. The private equity market is tepid, with another $600 million in battles

4. The venture capital circle is good and good: Shanghai launches a new policy to promote venture capital

The first part

Heading, oligarchy, and fundraising for multiple heads

The VC/PE market is deeply mired in “funding difficulties” due to regulatory measures such as de-loising, de-leveraging, going to the capital pool, and eliminating multi-layer nesting. Even if the institutions that successfully completed the fundraising were mostly started, the fund raising plan was started in the early stage, and the period of institutional fundraising was gradually extended. At the same time, in a severe fundraising environment, only a few head institutions rely on their excellent investment, exit performance, and long-term cooperation with LP to gain a relatively satisfactory fundraising result, and the entire industry accelerates the reshuffle of the survival of the fittest. The organization will develop towards branding and oligarchy.

• 46 funds enter the fundraising phase 2 FOF funds start

According to the CVSource data terminal, in July 2019, a total of 46 funds entered the fundraising phase, with a total target fundraising size of $201.28 billion and an average single target size of $ 428 million. From the perspective of different fund types, the initial fundraising is mainly concentrated on growth funds (Growth), a total of 37. This month, two parent funds (FOF) announced the launch. Among them, the largest target fund is China Science and Technology Industry. The parent fund has a total scale of 100 billion yuan and the first phase is 15 billion yuan. The investment fields include deep technology, hard technology, big health, Internet/model innovation, entertainment, and consumption upgrade.

From the perspective of different currencies, 44 new RMB funds were established, with a total target size of 18.702 billion US dollars and an average single target target of 425 million US dollars. Three foreign currency funds were established this month, including 2 US dollar funds. The total target size of the target is 1.201 billion US dollars, the average single target target is 601 million US dollars, and the target fund raising amount of 1 euro fund is 225 million US dollars.

• 43 funds completed the fundraising of US funds 9%

According to the CVSource data terminal, in July 2019, a total of 43 funds were completed, raising a total size of 36.286 billion US dollars, and the average single-raising scale was as high as 844 million US dollars, mainly from the 200 billion national IC industry investment fund. (Phase II) recruitment is completed. In terms of fund types, there are 24 growth funds and 17 venture capital funds.Two merger funds (buyout) completed the recruitment.



In terms of fund currency, 39 RMB funds were raised this month, raising a total size of 34.186 billion US dollars, and the average single fundraising scale was 8.7 billion US dollars; 4 US dollar funds were raised. The total size of the fundraising reached 2.1 billion U.S. dollars, and the average single fundraising scale was 525 million U.S. dollars. Among them, the Daxie Capital US dollar fund was completed and the fundraising scale exceeded 2 billion US dollars. Daxie Capital said that the fundraising far exceeded the target scale and attracted the world’s top institutional investors, including government pensions, sovereign wealth funds, The participation of family funds, corporate pensions, parent funds, financial institutions and other investors.



• Financing of key VC/PE institutions in July



• Business extension: significantly reduced number of newly registered funds

From the data of the funds extended by industry and commerce, the number of newly registered funds in 2019 is less than that in the previous year in 2017-2019. In July 2019, the number of newly registered funds for industry and commerce was 236, compared with 2018. 352 in July fell 32.95%; the number of newly registered industrial and commercial funds in July 2019The average value was 237, which was 32.29% lower than the 350 in July 2018. The difficulty of establishing the fund has been increasing. Looking at the past 12 months, except for the increase in the number of newly established funds in March due to the impact of holidays, the number of newly established funds has become negative growth, and the number of newly registered funds has declined successively.



• Business extension: geographical distribution of newly registered funds

From the perspective of various regions in China, 236 new funds registered in July 2019 for industrial and commercial registration were distributed in 19 provinces and cities, and coastal areas such as Guangdong Province became the most important registered sites, including Guangdong Province. There are 74 registered funds, which lead the country, with 33 registered funds and 30 and 30 in Jiangsu and Zhejiang provinces. It is worth noting that the newly registered VC/PE market in Beijing and Shanghai is not active.



• Industrial and industrial extension: 2 billion registered capital of Southeast High-tech Industry Fund

In July 2019, the newly established 236 funds of the industrial and commercial extension found that there were a number of funds established by the executive partners. Among them, the company is willing to invest in the establishment of five inventories in Guangzhou. Investment funds, Hong Mengrui wish, Rui Xin is willing to look forward to, Rui Xin is willing to take Canada, Rui Xin is willing to Yunshan, Rui wish everyone to take.



In terms of registered capital, there are 68 funds that disclose registered capital, of which there are 4 funds with a scale of more than 1 billion yuan, and 17 with a scale of more than 100 million yuan and less than 100 million yuan. 47. Among them, Jianye High Investment Co., Ltd. has a registered capital of 2 billion yuan in the Southeast High-tech Industrial Development Fund of Jianye District, Nanjing. The funder is an investment institution with state-owned assets and government background



• Business extension: key VC/PE institution new fund layout



Second part The big wave of venture capital market, financing transactions continue to be low

Since the capital winter, the fundraising problem has further triggered the venture capital marketThe development of the market slowed down, and the overall venture capital situation showed a significant downward trend. The activity and scale of financing transactions fell below the new low. At present, the venture capital market is experiencing big waves, and the “Matthew effect” of the strong Hengqiang is becoming more and more obvious. The high-quality projects and head institutions stand out and become the main force in the venture capital market.

• The venture capital market continues to be low. The average financing value is low

Overview of the overall situation of China’s venture capital market, due to the impact of capital winter, the downward trend of venture capital financing transactions is significant. Since the peak of venture capital financing in mid-2018, it has rapidly continued to decline. Since May 2019, venture capital Financing transactions fell below 300, showing a trend of chilling downturn, as follows:

• The number of financing cases was 289, down 62.71% year-on-year

• The total financing scale reached US$2,302 million, a sharp drop of 82.87% year-on-year

• Investment mean low innovation, only $7.9966 million, down 54.06% year-on-year

• The number of large transaction cases has decreased, and the US$100 level is only 2





• Investment market segmentation rounds

From the perspective of the venture capital market segment:

• Financing: The financing transactions are mainly concentrated in the early stage, of which 68 cases of A round of financing, accounting for 23.53%;The number of round financing cases totaled 62, accounting for 21.45%;

• Financing scale: Large round of financing in Series B, with an average single financing of US$17.452 million;

• Policy: Shanghai issued a new policy to promote venture capital, and proposed to improve the incentive mechanism for early investment and profit, and to create a cluster of Shanghai venture capital and incubator. As one of China’s most important venture capital trading sites, Shanghai’s introduction of venture capital to benefit the New Deal will help stimulate and promote the early development of the national venture capital market.



• High-end manufacturing industry is widely favored by capital

In July 2019, the investment hotspots in China’s venture capital market were concentrated in high-end manufacturing, medical health, IT and information, Internet, blockchain and other fields, as follows:

• Financing: High-end manufacturing financing is the most active, with 39 cases in total

• Financing scale: medical health has become a key investment industry, with a total financing volume of US$764 million

• Financing average: Super-large-scale financing for living services, with a financing average of $23 million

• Healthy performance in the health field

This month, the performance of the health care sector in the venture capital market was outstanding, and the largest financing group was Lepu Bio, which completed the 900 million RMB A round of financing. This financing was led by Jiyu Capital, Su Mintou, Kaiyuan Guochuang,Suzhou Xinrui, Lecheng Medical and Lepu Medical are investing. Founded in 2018, Lepu Bio focuses on cancer immunotherapy and has established a comprehensive industrial platform for target discovery, drug development, development and production. It is reported that this round of financing will be used for the clinical trial promotion of Lepu biological core projects, the construction of macromolecular production lines, the introduction of product pipelines and the construction of talent teams.



• Key financing cases in the venture capital market



Part 3 The private equity market is tepid, with another $600 million in battles


In July 2019, the development trend of China’s private equity investment market was tepid. Compared with the monthly in 2018, the overall development showed a downward trend. Although the financing transaction activity is not high, there is still a lot of big financing with star cases – this month, Didi has received another 600 million US dollars in strategic investment.

• The private equity investment market is tepid

In July 2019, China’s private equity investment market was tepid, there was no significant ups and downs in the amount and size of financing, and the average financing value showed a downward trend. The details are as follows:

• The number of financing cases totaled 149, down 24.37% year-on-year

• The total financing size reached US$5.123 billion, down 56.67% year-on-year

• The average financing value reached US$34.38 million, down 42.71% year-on-year./p>

• 21 cases of large-value transactions in the US$100 million, with a financing scale of US$3.291 billion, accounting for 64.24% of the total financing this month





• Financing of Private Equity Investment Markets

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From the perspective of China’s private equity investment market, most of the transaction types are strategic financing. There are 107 financing cases, accounting for 71.81%, and the total financing amount is 1.274 billion US dollars, accounting for 24.87%. However, in terms of the average value of financing, the E round and the post and PIPE both reached the level of US$100 million.



• Financing in the private equity market segment

In July 2019, the financing of the Chinese private equity market segment was as follows:

• Financing: Manufacturing financing transactions are the most active, with a total of 24 cases;

• Financing scale: The financial industry is strong in attracting gold, and the total financing scale is up to1.707 billion US dollars;

• Financing average: Everbright Bank completed 35 billion large-scale financing, and the financial industry financing average rose to the top position



• Diversity trips receive another $600 million strategic investment

Didi travels to get Toyota’s $600 million investment, some of which will be used to establish a joint venture with GAC Toyota Motor Co., Ltd. to provide car-related services to platform drivers. Drip will be smart with Toyota Motor Corporation. Expand cooperation in the field of travel services.



• Private Equity Market Key Financing Case



Part 4 July VC/PE Market Policy Inventory


The venture capital circle is good and good: Shanghai launches a new policy to promote venture capital

• Shanghai launches a new policy for promoting venture capital

The Shanghai Municipal Government has formulated and issued a number of Opinions on Promoting Sustainable, Healthy and High-Quality Development of Shanghai Venture Capital. Comments point out:

• Let’s play the role of various government investment funds to enrich the venture capital fundraising channels

(1) Strengthening the coordination of various government investment funds

(2) Establish and improve the continuous investment mechanism of government guidance funds

(3) Continuously optimize government investment fund management and service models

(4) Establishing and improving the market-oriented operation mechanism of state-owned venture capital investment enterprises

• Promoting the development of venture capital and multi-level technology financial services system

(1) Strengthening the linkage between venture capital and market segments such as Science and Technology Board

(2) Strengthening the linkage between venture capital and various financial institutions

(3) Accelerate the development of angel investment

(4) Encourage mergers and acquisitions in key industries

(5) Enriching the fundraising channels of venture capital companies

(6) Strengthening the joint development of the venture capital industry in the Yangtze River Delta

(7) Orderly promote the introduction and exit of venture capital

• Promoting the combination of venture capital and industrial development and regional development

(1) Strengthening the incubation of seed projects

(2) Establishing a special docking mechanism for venture capital and government

(3) Building a Shanghai Venture Capital and Incubator Cluster

(4) Establish and improve early incentives for investment and other incentives

• Strengthen talent and policy protection

(1) Accelerate the gathering of venture capital institutions and the introduction and training of talent teams

(2) Do a good job in the record management of venture capital enterprises

(3) Optimizing the credit environment construction of venture capital enterprises

(4) Strengthen self-discipline and association construction in venture capital industry

(5) Improve the venture capital investment service system

For details, please see:

https://www.chinaventure.com.cn/news/80-20190731- 346585.html

Data Description


For the convenience of readers, the data source, statistical caliber and exchange rate conversion in the report are now explained:

Data Sources

The source of the chart data for this report is CVSource’s investment data.

Statistics caliber

• Starting to raise funds: Funds newly established or entering the fundraising phase during the statistical period;

• Complete the fundraising: announced the fund raised during the statistical period;

• Industrial and Industrial Extension Fund: Mining funds with venture capital and equity investment business from business information;

• Startups/Ventures: Financing rounds are in the seed round to C round (including C+ rounds);

• Private Equity Investment: The financing round is in the D round and later (including the D round) investment;

• Financing scale: The actual amount of public disclosure in the market is estimated, and the amount of undisclosed specific values ​​is estimated and included in the statistics.

• All the scale of investment and the scale of investment involved in the exchange rate conversion report are uniformly converted into US dollars according to the exchange rate at the time of fundraising or investment. Data Description Copyright © Investment Information www.cvinfo.com.cn 152