In 2019, the number of investment and financing transactions is likely to fall to the level before 2014.
Near the end of the year, in order to better present the real status and trends of China’s venture capital field in 2019, we also sorted out in advance. The investment and financing transactions in the first 10 months of 2019 provide a basis for decision-making for readers’ year-end decision-making and new-year planning.
According to our research and observation:
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In January-October 2019, the transaction amount of China’s primary market may be around 584.2 billion yuan;
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The number of investment and financing transactions in the whole year of 2019 is likely to fall to the level before 2014;
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In 2019, the amount of investment and financing transactions is likely to fall to the level before 2016;
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The average seed round in February-September 2019 is about 17 million yuan, and the average amount in the D round is about 860 million yuan;
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Strategic investments have exceeded financial investment both in terms of amount and quantity;
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Enterprise services, medical health, and total financing amount of over 43%;
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The number of listed companies in the first ten months of January 2019 was the lowest in nearly 6 years, and the number of M&A transactions has exceeded 774;
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Tencent Ali has participated in the 100 billion RMB transaction from January to October 2019;
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The merger and reorganization of listed companies will be loosened, or it will become a new bonus in the 2020 primary market
1. From January to October 2019, the transaction amount of China’s primary market may be around 584.2 billion yuan
As shown in the following figure, according to the public information of Whale’s quasi-statistics, from January to October 2019, there were about 3,427 transactions in China’s primary market, and the transaction amount was about 584.121 billion yuan.
From the monthly average data, from January to October 2019, both the number of transactions and the transaction amount were relatively stable, and there was no large fluctuation.
In the 2019 China Venture Capital Report: The first-tier market investment and financing is five yearsIn the article “The lowest point ”, we also sorted out the transaction data from January to June 17th, 2019. According to the data of business cards, a total of 2,787 investment and financing transactions (excluding mergers and acquisitions) occurred in the domestic primary market, and the total transaction amount was close to 362.9 billion yuan.
Considering the 10 consecutive years of data from 2010 to 2019, the venture capital environment is still not optimistic this year. The chart below shows the investment and financing data for November 11, 2010-19. Simple projection forecast:The number of investment and financing transactions in the whole year of 2019 is likely to fall to the level before 2014,The annual investment and financing transaction amount is likely to fall in 2019. Until the level of 2016.
Second, the average amount of seed rounds in 2019 is about 17 million yuan, and the average amount in D round is about 860 million yuan
According to the public information data of Whale’s quasi-statistics, the proportion of non-financial investments increased in 2019. From February to October 2019, the proportion of non-financial investments per month was about 51%, which has exceeded financial investment.
From February to October in 2019, an average of about 1.64 billion yuan was invested in the seed round company, 4.41 billion yuan went to the A round company, 7.22 billion yuan went to the B round company, and 6.16 billion yuan went to the C round company, 7.9 billion yuan. Flow to the D-wheel company.
In terms of the number of companies that have been invested, about 95.7 seed round transactions are announced each month, 85 A round financing transactions are announced, 44.6 B round financing transactions are announced, and 18.6 C round financing transactions are announced, 59 D The round financing transaction was announced.
In terms of the combination of the two, the average seed round financing scale is about 17 million yuan, and the A round of financing is about 51.87 million yuan;B round financing The scale is about 160 million yuan; the scale of C round financing is about 330 million yuan; the scale of D round financing is about 860 million yuan.
Third, corporate services, medical health, and the total amount of financing exceeds 43%
In February-October 2019, at least 812 transactions were announced in the corporate services sector, accounting for 27% of the total financing transactions (2972) in the same period; at least 494 transactions were announced in the medical and health fields, accounting for the same period. A total of 16.7% of the total amount of financing transactions; a total of 1,306 transactions occurred, accounting for about 43.7% of the total financing transactions during the same period.
Four, the number of listed companies in 2019 is the lowest in nearly 6 years, and the number of M&A transactions has exceeded 774
According to public information, a total of 230 companies completed the listing in January-October 2019, and about 774 companies completed the acquisition. Complete the listed company’s 
The number is the lowest in the past 6 years. It is simple to estimate that this year’s M&A transactions may be around a thousand, or the same as last year, and it is becoming one of the main exit methods.
From the monthly average data, there are about 23 IPO transactions per month from January to October 2019; 77 M&A transactions.
From the perspective of the choice of IPO companies, the domestic market is still the most important capital market for enterprises. From January to October 2019, a total of 146 companies completed IPOs in the A-share market (including the Kechuang Board); 133 companies listed on the Hong Kong stock market, and 25 companies listed on the US stock market. After the opening of the science and technology board, the proportion of domestic A-share listed companies has increased.
V. In 2019, Tencent Ali participated in a 100 billion RMB transaction
Tencent and Ali are becoming important “buyers”. According to public data, Tencent has participated in at least 56 transactions in January-October 2019, accounting for 1.6% of the total transaction volume of the primary market in the same period (3427). The total amount of these transactions is about 49.15 billion yuan, accounting for In the same period, the total transaction amount of the primary market was 8.4% of the transaction amount (584.211 billion yuan). Alibaba has participated in at least 25 transactions. The total amount of these transactions is about 54.73 billion yuan, accounting for 9.3% of the total transaction amount of the primary market in the same period (584.211 billion yuan). This means that the investment amount of the two participating companies has exceeded 100 billion yuan, accounting for about 18% of the total transaction amount in the primary market.
The following picture shows the transaction summary of Tencent’s domestic investment companies in China from January to October 2019.
The following picture shows the transaction summary of Alibaba’s domestic investment companies from January to October 2019.
It is worth noting that Huawei is becoming an emerging buyer. In April 2019, Huawei established a wholly-owned investment company, Hubble Technology Investment Co., with a registered capital of 700 million yuan. From January to October 2019, Huawei announced only 4 transactions, including Tianyue Crystal Materials, Jiehuaite Microelectronics, Deep Thinking, and Yutai Chetong. In addition, according to industry news, Bamboo Smart B+ round financing, Huawei also participated.
VII. Mergers and acquisitions of listed companies will be loosened, or they will become new bonuses in the 2020 primary market
On October 18, 2019, the China Securities Regulatory Commission officially issued the “Decision on Amending the Measures for the Management of Major Assets Restructuring of Listed Companies”, which was considered to be a certain degree of loosening of mergers and acquisitions of listed companies. On November 8, 2019, the CSRC publicly solicited opinions on re-financing rules such as the Measures for the Administration of Securities Issuance of Listed Companies and the Interim Measures for the Administration of Securities Issuance by GEM Listed Companies, and proposed to loosen the refinancing rules of the Main Board and the Growth Enterprise Market.
Several provisions are beneficial to the secondary market, or are expected to affect the primary market. The activeness of the primary market in 2014-2016 was also related to the popularity of the secondary market between 2013 and 2015. The linkage between the current primary and secondary markets is more frequent, and this effect may be accelerated.
