USA, India, and China are the top markets for funding to e-commerce startups. Together, they account for 62% of global deals and 71% of total funding going to e-commerce startups.
With over 950 e-commerce deals, the US drives 5x more deals than India and China, but US deals tend to be smaller funding rounds. China actually drives a slightly higher share of global funding than the US, despite accounting for just 9% of global deal flow. A few more data points:
- Chinese e-commerce companies received the most funding, about $9.9B dollars over 188 total deals. This is a higher total funding amount than the US market, and translates to $53M per deal. That’s also a considerably higher average deal size than what the US and India are seeing.
- The US market has seen $9.8B invested over 962 deals, for an average of $10M per deal, less than one-fifth of China’s deal size. That said, the US market drives extremely high deal volume and accounted for 45% of global deals.
- India lags the two leading markets, with $5.6B invested over 184 deals, for an average of $30M per deal, which is about 3x the deal size seen in the US market, but significantly smaller than the deal size of China.
- Other major players are Germany with $2.8B invested over 168 deals, and the UK with $1.2B invested over 98 deals.
The chart below shows each of the major countries’ breakdown of deal type by dollar share, revealing an emphasis on late-stage funding in several markets.
- The US market saw an even distribution with about 34% of dollars going to late-stage investments, and 21% to early-stage rounds (somewhat bucking the general global trend toward lopsided dollar-share held by the late stage).
- In India, about 66% of total dollars went to late-stage investments in companies such as Flipkart, Quickr, and Snapdeal. This is a lot higher than the regular distribution to late-stage investments. Additionally, only 4% of dollar funding went to early-stage investments.
- China and Germany had a similar and more usual investment-stage distribution with around a 40% dollar-share for late-stage investments, and less than a 10% share for early-stage investments. Some major late-stage Chinese investments include Jingdong, Dianping and Uxin Pai.
Note: For this analysis,
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