China VCs raise US$3bn in second quarter

 

Chinese venture capital firms had a record US$3bn in funds available to invest during the second quarter of 2008, according to a new survey.

More than US$1.2bn of that was invested in local firms, with IT and hi-tech companies receiving more than half, according to the Zero2IPO Group, a local venture capital consultancy.

During the quarter, 29 local and foreign venture capital firms set up a total of 40 VC funds, the company reported. IT related investments were up compared to the previous quarter.

Almost half the investments were of $1m or more. Thirteen major deals that involved an investment of US$20m or more comprised almost half of the total amount invested.

"Expansion-stage and late-stage enterprises both gained much more favour from VC, with expansion-stage firms accounting for over half of the total deals," the research firm said in a statement to media.

Of the US$3.02bn in funds raised during the quarter, US$1.69bn was controlled by foreign venture capital firms and US$1.18bn by local firms. With only seven foreign funds, compared to 31 funds established by local firms, the average size of foreign funds, sitting at US$241m, was considerably greater.

The total amount invested is growing at an average rate of 73.5 percent per year, according to Zero2IPO.

"VC firms prefer to invest either in start-ups or in elite, mature enterprises to share their stable revenue," the company said in a statement.

Zero2IPO gathers its data from 300 VC firms involved in the China market.

Copyright ©v3.co.uk


 
 
 
Top Stories
Tech SWAT teams kicking down the digital door
From dam engineers in Ecuador to Sydney light-rail gurus, Cardno's global CIO Karen Wagner is linking up her widespread organisation.
 
AusPost board approves Fujitsu outsourcing
End user computing to be handed over to partner.
 
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Is site blocking effective in stopping piracy?


   |   View results
Yes
  2%
 
No
  86%
 
Somewhat
  12%
TOTAL VOTES: 597

Vote