Asia’s tech scene continues to garner significant investment. We break down Asia’s tech landscape in 14 charts below.
Q1 2015: $4.8B ON 247 DEALS – ASIA STILL ON FIRE
After a blowout Q4’14 which featured six $500M+ rounds, Asian VC-backed tech companies came slightly back down to earth, raising $4.8B on 247 deals. The funding total is still the second highest total since 2013, up 95% versus the same quarter a year prior.
SEQUOIA CAPITAL IS MOST ACTIVE IN Q1’15
Sequoia Capital, which includes all of their Asian affiliates, was the most active investor in Asian VC-backed Tech companies. The fund’s China arm invested in four $100M+ rounds to companies including Ele.me and Zhaogang, among others. IDG Ventures and Matrix Partners rounded out the top 3.
INDIA AND CHINA LEAD TECH ACTIVITY IN Q1’15
India outpaced China in Q1’15 for VC-backed Tech investments, with 69 in Q1’15 versus China’s 66. India saw the most deal growth of the top countries, at 60%. Overall the top 3 countries accounted for 66% of all deals to VC-backed Tech companies in Asia in Q1.
LATE-STAGE DEALS FALL TO 5%
Early-stage deal share continued to dominate in Q1’15, hovering above 60% for the fifth straight quarter. While most rounds were range-bound, late-stage (Series D – Growth Equity / Private Equity) deals accounted for just 5% of all deals, their lowest figure since Q1’14.
NINE-FIGURE ROUNDS DOMINATE FUNDING TREND
A slew of $100M+ rounds dominated the dollar share in Q1’15. Series C rounds took the highest share, at 23%, as To8to, Uxin Pai, and Lamabang all raised $100M+ rounds. Series E+ rounds saw their lowest dollar share since Q1’14 at 20%, despite Kuaidi Dache’s $600M Series E financing.
SEED DEAL SIZES STAY AT $1M IN Q1’15
Median seed deal sizes to VC-backed Asian Tech startups were at $1M for the second quarter in a row. Average seed deal size was relatively range-bound at $1.07M for the second straight quarter.
SERIES A DEAL SIZES REACH FIVE-QUARTER HIGH
Series A deal sizes reached five-quarter highs on both a median and average basis. Multiple $50M+ rounds drove the average to $10.6M, while the median round size edged up slightly to $5.55M.
KUAIDI DACHE, CHINA DOMINATE TOP DEALS
Car-hailing company Kuaidi Dache, which merged with DiDi Dache in February, was the top deal to an Asian VC-backed Tech company in Q1’15. China dominated the top deals, with 12 of the 15 largest deals of the quarter.
CHINA FUNDING REMAINS ABOVE $2B FOR THIRD STRAIGHT QUARTER
After a massive Q4’14 which featured five $100M+ rounds and 82 deals, Q1’15 saw just under $3B raised, up 69% versus the same quarter a year prior. Deals fell for the second straight quarter, however funding was supported by large rounds, as Q1’15 saw over ten $100M+ financings to VC-backed Chinese Tech companies.
BEIJING IS DOMINANT CHINESE CITY
Beijing dominated all Chinese cities in deals and dollars in Q1’15 with 2 of the top 5 deals (Uxin Pai, Cheyipai). Hangzhou was buoyed by Kuaidi Dache’s $600M round, which valued the car-hailing company at $8.75B.
MATRIX, SEQUOIA, & IDG ARE MOST ACTIVE IN CHINA
Matrix Partners, Sequoia Capital, and IDG Ventures were the most active investors in Chinese Tech companies in Q1’15, with the bulk of their investments coming post-Series A. All three invested in Zhaogang’s $100M Series D.
INDIA TECH DEAL ACTIVITY REACHES NINE-QUARTER HIGHS
Investment into VC-backed Indian Tech companies topped $1B for the third straight quarter, reaching $1.36B in Q1’15, up 225% versus the same quarter a year prior. While funding was down slightly versus Q4’14, deals reached a nine-quarter high, growing 60% vs. Q1’14 to 69.
BANGALORE LEADS IN DEALS. PAYTM IS BIGGEST DEAL
Bangalore led all Indian cities in deal activity, due to the city’s booming early-stage activity. Mumbai was second in deals, and first in dollars among the top cities, as both Olacabs and FreeCharge call India’s most populous city home. One97 Communications, the parent company of mobile commerce platform Paytm was the biggest deal in Q1’15, raising $575M from Alibaba at a $2B valuation.
SEQUOIA CAPITAL IS MOST ACTIVE
Sequoia Capital was the most active investor in India Tech in Q1’15. Sequoia participated in 3 of the 6 largest deals of the quarter to FreeCharge, CarDekho, and NewsHunt. Tiger Global Management was the second most active investor, with multiple early-stage deals to companies including Grofers, News in Shorts, and MoonFrog Labs, among others.
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