In the third quarter of 2019, affected by the economic environment, the activity of the investment and financing market in the Internet industry decreased year-on-year. The number of financing cases was 153, down 63.04% year-on-year. In the third quarter, 11 Internet-based enterprises completed IPOs, up 83.33% year-on-year. The number is the highest in the past three years.

Editor’s note: This article is from WeChat public account “Beyond J Curve” (ID: Beyondthejcurve), author CVSource hits the data.

Beyond the J curve

“Extend your reading with data”, this period beyond the J curve brings 319 Internet industry investment and financing report. In the third quarter of 2019, affected by the economic environment, the activity of the investment and financing market in the Internet industry decreased year-on-year. The number of financing cases was 153, down 63.04% year-on-year. In the third quarter, 11 Internet-based enterprises completed IPOs, up 83.33% year-on-year. The number is the highest in the past three years. See below for more details:

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Directory

  • Internet financing activity has fallen by more than 60%, and e-commerce has received much attention

  • The M&A market is developing well, both in volume and size.

  • The number of IPOs in the third quarter has reached a new high, and the board has helped

  • Review of Internet Industry Hotspots in the Third Quarter of 2019

01 Internet financing activity has fallen by over 60%,E-commerce has received much attention

In the third quarter of 2019, due to the economic environment, the activity of the investment and financing market in the Internet industry declined year-on-year, but its market activity in the whole industry still dominates. In the field of Internet segmentation, the field of e-commerce has received much attention.

1Internet financing activity decreased year-on-year

In the third 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 153, down 63.04% year-on-year; the financing scale was 3.843 billion US dollars, down 32.45% year-on-year. Throughout the past three yearsIn the fourth quarter of 2018, the development of the Internet industry slowed down and the financing activity declined. The industry entered a new era of transformational adjustment and kinetic energy conversion. In the segmentation area, economy, big data and other hotspots are active in financing.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 1-2017 Q1-2019 Q3 China Internet Industry VC/PE Financing

2 Number and size of financing in the Internet segment

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 2-2019 Q3 China Internet market segmentation volume accounted for the number of transactions

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 3-2019 Q3 China Internet market segmentation volume accounted for the proportion of transactions

3 Key financing cases in the Internet field

In the third quarter of 2019, the financing scale Top1 was knowing to complete the $434 million F round of financing, this round of financing was led by fast-handed investors, Baidu followed, and Tencent and today’s capital investors continued to follow cast. The funds obtained from this round of financing will be used to understand the speed-up technology and product innovation, and continue to strengthen the community ecological construction.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Table 1 – 2019 Q3 Internet companies get VC/PE financing key cases

02 The M&A market is developing well,the number and size are increasing

In the third quarter of 2019, the number and scale of M&A transactions in the Internet industry showed an upward trend year-on-year, and the M&A market developed well. The scale of mergers and acquisitions has been leaping, mainly due to the promotion of large-scale transactions in the head star project, and the momentum of the Internet M&A market is strong.

1Announcement that the transaction size has increased significantly year-on-year

In the third quarter of 2019, the number of transactions in the Internet industry M&A market was 55, up 37.50% year-on-year; the amount of M&A disclosed was $4.575 billion, up 180.50% year-on-year. There was no large-scale growth in the number of transactions announced this quarter. Due to the large-scale transaction cases such as Alibaba’s $2 billion acquisition of NetEase koala, the amount of mergers and acquisitions was announced as a downward trend since the third quarter of 2018. The transaction scale was overall. The development is in good shape.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 4 – 2017 Q1-2019 Q3 Internet Industry M&A Market Announces Trading Trends

2The Internet M&A market has achieved a record high transaction volume

In the third quarter of 2019, the Internet industry M&A market 36 cases of completed transactions, up 28.57% year-on-year; disclosed mergers and acquisitions amounted to 5.482 billion US dollars, up 33.51% year-on-year. The surge in the number of completed transaction cases in the third quarter of 2019 was mainly affected by the obvious case of Alibaba’s $2 billion acquisition of Netease Koala. The Internet industry has strengthened resource integration, and large-scale mergers and acquisitions have occurred frequently.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 5 – 2017 Q1-2019 Q3 Internet Industry M&A Market CompletedEasy trend chart

3 The number and size of mergers and acquisitions completed in the Internet segment

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 6 – 2019 Q3 China Internet Market Segment Segments p>
The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 7 – 2019 Q3 China Internet market segmentation volume accounted for size

4Key M&A Cases in the Internet

Transaction Scale Top1: Alibaba’s $2 billion acquisition of Netease Koala.

Alibaba Group’s wholly-owned acquisition of Netease’s cross-border e-commerce platform koala, the transaction price of 2 billion US dollars, Alibaba will be paid in full cash, September 27 completed industrial and commercial changes. After the transaction is completed, “Netease Koala” will be included in the Tmall Import and Export Division.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Table 2 – 2019 Q3 Internet Chinese Enterprises Complete M&A Key Cases

03 ​​The number of IPOs in the third quarter is record high,Kechuang Board provides assistance

In the third quarter of 2019, 11 Internet-based Chinese companies completed IPOs, raising a total of 1.256 billion US dollars. This season, although the total size of fundraising did not have outstanding performance in the third quarter of 2018, there was a significant growth trend in the number of Chinese companies that achieved listing. 科创板为Internet Chinese IPOs provide a strong boost.

1Innovative IPOs

In the third quarter of 2019, 11 Internet-based Chinese companies completed IPOs, up 83.33% year-on-year, the number was the highest in the past three years; the fundraising scale was 1.256 billion US dollars, down 80.16% year-on-year. Throughout the past three years, the IPO trend of Internet Chinese enterprises, in the third quarter of 2018, due to the listing of Internet giants such as the US group comments and the fight, the scale of fundraising has exploded. Although the scale of fundraising in the third quarter of 2019 decreased year-on-year, However, the number of IPOs exceeded 10, setting a new high for the past years.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 8 – 2017 Q1-2019 Q3 China Internet Industry IPO Fundraising Funds

2 Branches help Internet Chinese companies to list

In the third quarter of 2019, there were 4 Internet-based enterprises listed on the Science and Technology Board, accounting for 36.36% of the total number; the scale of the science and technology board was 4.692 billion yuan, accounting for 67.13% of the total fundraising scale. Up to now, among the enterprises that have been registered for the board, nearly half of them are Internet-related companies. The institutional arrangement of the science and technology board is conducive to the choice of domestic companies for Internet 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.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Figure 9- 2019 Q3 Internet Chinese Enterprise IPO Situation

3IPO Business Listing

Trading scale Top1: Baichu Electronics Branch listed on the market Raised funds of 1.715 billion yuan

On August 8, 2019, Baichu Electronics (688188.SH) was listed on the Shanghai Stock Exchange, and the fundraising scale was 1.715 billion yuan. Baichu Electronics is a laser cutting control system.The high-tech enterprise and key software enterprise of R&D, production and sales are the first private enterprises engaged in the development of fiber-optic laser cutting complete control system. The main business department provides laser cutting control system as the core for all kinds of laser cutting equipment manufacturers. Various types of automation products.

The third quarter Internet industry report: financing activity fell more than 60%, IPO companies increased by 83.33%

Table 3 – 2019 Q3 Domestic Internet Industry IPO Enterprise List

04 Review of Internet Industry Hotspots in the Third Quarter of 2019

2019 (and 7th) IMT-2020 (5G) Summit in Beijing

On July 17, 2019, guided by the Ministry of Industry and Information Technology, the IMT-2020 (5G) Summit, jointly hosted by the IMT-2020 (5G) Promotion Group and the China Communications Standards Association, was opened in Beijing. With the theme of “5G Commercial Win-Win Future”, the two-day summit invited more than 500 experts from the Ministry of Industry and Information Technology and dozens of domestic and foreign mainstream mobile communication and industry application experts to participate in the conference to focus on 5G standards, industry and Latest developments and trends in applications.

The Artificial Intelligence Data Security White Paper (2019) is released

On August 9, 2019, Wei Wei, director of the Information Security Research Department of the China Institute of Information Technology, published the White Paper on Artificial Intelligence Data Security (2019). The white paper first proposed from the connotation of artificial intelligence data security. Based on the artificial intelligence data security risk and security application, this paper summarizes the status quo of artificial intelligence data security governance at home and abroad, and puts forward some suggestions for artificial intelligence data security management in China.

ITU&WHO Medical Health Artificial Intelligence Focus Group China counterpart group officially established

Health Medical Artificial Intelligence Focus Group (FG AI4H) is committed to standard pre-study of health care artificial intelligence, focusing on data formats, standard data sets and algorithm evaluation and verification of health care artificial intelligence, and drafting health Medical artificial intelligence (AI for Health) technical report and selection of best use cases in the vertical field of health care artificial intelligence, combined with experts in the field of health care and artificial intelligencePromote the development of artificial intelligence innovation in health care.

On August 30, 2019, the AI ​​for Health Group established a domestic counterpart group. The China Information and Communication Research Institute served as the leader of the counterpart group, the Center for Medical Device Evaluation of the State Drug Administration, and China. The Institute of Metrology and other units, as deputy leader units, jointly promote and deepen the international medical artificial intelligence standards.

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

  • VC/PE investment and financing transactions: During the statistical period, the investor is the investment/financing transaction of the institution/fund/enterprise

  • Declare M&A: Cases of M&A Announced during the Statistical Period

  • Complete the merger: In the statistical period, the case of M&A completion, the case of M&A failure is not included in the statistics

  • M&A Financing Scale: The actual amount of publicly disclosed market statistics, the amount of undisclosed specific values ​​is estimated and included in the statistics

  • Listing type: only includes the issuance of new shares, excluding Hong Kong stocks, listing and transfer, and the IPO fundraising scale has eliminated the sales shares in Hong Kong stocks, rather than the amount of funds raised by new shares.

Exchange Rate Conversion

  • All the scale of the fundraising involved in the report and the scale of the investment are calculated according to the exchange rate of the day of fundraising or investment, and are uniformly converted into US dollars.