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<p style="text-align: justify;">Record levels of activity in the Asian region in the second quarter drove the venture capital-backed deal market to record its largest ever quarter.</p></article>

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<p style="text-align: justify;">Record levels of activity in the Asian region in the second quarter drove the venture capital-backed deal market to record its largest ever quarter.</p>
<p style="text-align: justify;">According to a recent report by Preqin, 2,062 venture capital-backed deals were announced worth a combined $47 billion in the second quarter of 2017.</p>
<p style="text-align: justify;">While these figures are likely to rise by around 5 per cent as more information becomes available, they have already crossed the previous record of $43 billion in venture capital-backed deals recorded in Q3 2015.</p>
<h4 style="text-align: center;"><em><strong>Global Quarterly Venture Capital Deals*, Q1 2012 &#8211; Q2 2017 </strong></em></h4>
<p style="text-align: justify;"><a href="https://media.dealstreetasia.com/uploads/2017/07/vc-global-quarterly-deals-1.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-76929" src="https://media.dealstreetasia.com/uploads/2017/07/vc-global-quarterly-deals-1.png?resize=640,415" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-global-quarterly-deals-1.png?w=732 732w, https://media.dealstreetasia.com/uploads/2017/07/vc-global-quarterly-deals-1.png?resize=300,195 300w" sizes="(max-width: 732px) 100vw, 732px" data-recalc-dims="1" /></a></p>
<p style="text-align: center;"><strong><em>*Figures exclude add-ons, grants, mergers, venture debt and secondary stock purchases.</em></strong></p>
<p style="text-align: justify;">This strong growth in deal making can be attributed to the record levels funding in the Asian region, which witnessed deals worth $22 billion being announced, almost half the global total.</p>
<p style="text-align: justify;">For the fourth time in six quarters, Asia recorded the highest deal value of any region with $22 billion across 550 deals, which was higher than $19 billion through 936 deals in North America.</p>
<p style="text-align: justify;">Within Asia, it was the mega deals that propelled this growth, led by the $5.5 billion <span style="color: #000080;"><strong style="color: #000080;"><a style="color: #000080;" href="http://China’s Didi raises over $5.5b in record tech funding Read more at: https://www.dealstreetasia.com/stories/chinas-didi-raises-over-5-5b-in-record-tech-funding-71495/" target="_blank" rel="noopener noreferrer">financing of Didi Chuxing</a> </strong></span>in April, the largest venture capital-backed deal ever recorded.</p>
<h4 style="text-align: center;"><em><strong>Venture Capital Deals in Q2 2017 by Region</strong></em></h4>
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<p><a href="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-region-1.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-76930" src="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-region-1.png?resize=640,424" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-region-1.png?w=726 726w, https://media.dealstreetasia.com/uploads/2017/07/VC-deals-region-1.png?resize=300,199 300w" sizes="(max-width: 726px) 100vw, 726px" data-recalc-dims="1" /></a></p>
<p>Among the largest ten venture capital deals in the Apr-Jun quarter, eight took place in Asia. These included the <span style="color: #000080;"><strong><a style="color: #000080;" href="http://Flipkart raises $1.4b from Tencent, eBay, Microsoft; acquires eBay India operations Read more at: https://www.dealstreetasia.com/stories/india-flipkart-raises-1-4b-from-tencent-ebay-microsoft-acquires-ebays-india-operations-69898/" target="_blank" rel="noopener noreferrer">$1.4 billion funding round</a></strong></span> raised by Indian e-commerce giant <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/flipkart" target="_blank" rel="noopener noreferrer">Flipkart</a></strong></span> and<span style="color: #000080;"><strong><a style="color: #000080;" href="http://India’s leading digital payments firm Paytm raises $1.4b from SoftBank Read more at: https://www.dealstreetasia.com/stories/indias-leading-digital-payments-firm-paytm-raises-1-4b-from-softbank-72956/" target="_blank" rel="noopener noreferrer"> the $1 billion funding</a></strong></span> by <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/softbank" target="_blank" rel="noopener noreferrer">SoftBank</a></strong></span> in leading digital payments firm <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/paytm" target="_blank" rel="noopener noreferrer">Paytm</a></strong></span>.</p>
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<p style="text-align: justify;">Indonesian transport hailing major <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/gojek" target="_blank" rel="noopener noreferrer">GoJek</a></strong></span>&#8216;s $1.2 billion funding from Chinese internet giant <span style="color: #000080;"><strong><a style="color: #000080;" href="http://dealstreetasia.com/tag/tencent" target="_blank" rel="noopener noreferrer">Tencent</a></strong></span> was also one of the top three deals globally.</p>
<h4 style="text-align: center;"><em><strong>10 Largest Venture Capital Deals Announced Globally in Q2 2017</strong></em></h4>
<p style="text-align: justify;"><a href="https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-76945" src="https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png?resize=640,256" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png?w=1790 1790w, https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png?resize=300,120 300w, https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png?resize=768,307 768w, https://media.dealstreetasia.com/uploads/2017/07/largest-vc-deals-q2-2.png?resize=1024,409 1024w" sizes="(max-width: 1790px) 100vw, 1790px" data-recalc-dims="1" /></a></p>
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<p>Early stage investments continued to dominate the VC investments as angel stage investments accounted for 28 per cent of total deal flow, while Series A deals represented an equal proportion.</p>
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<p style="text-align: justify;">And while the average value of series A-C deals in 2017 till date has fallen from levels seen in 2016, the average Series D deal size has hit a record $99 million.</p>
<h4 style="text-align: center;"><em><strong>Number of Venture Capital Deals in Q2 2017 by Investment Stage</strong></em></h4>
<p style="text-align: justify;"><a href="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-stage-1.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-76944" src="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-stage-1.png?resize=640,425" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/VC-deals-stage-1.png?w=719 719w, https://media.dealstreetasia.com/uploads/2017/07/VC-deals-stage-1.png?resize=300,199 300w" sizes="(max-width: 719px) 100vw, 719px" data-recalc-dims="1" /></a></p>
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<p><strong>EXITS</strong></p>
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<p style="text-align: justify;">While venture capital investment activity touched record levels, exits declined in the second quarter of 2017. The period saw 244 exits globally, worth a combined $14 billion.</p>
<p style="text-align: justify;">This is a decline from 293 exits worth $18 billion in the previous quarter.</p>
<p style="text-align: justify;">&#8220;With an increasing number of companies choosing to stay private rather than being sold or going public, it is perhaps not surprising that we have seen a slowdown in the volume of exits since they last peaked in the latter part of 2015. However, venture capital funds, unlike private companies, have defined lifespans after which investors will expect to see return from their investments,&#8221; said Felice Egidio, Head of Venture Capital Products, Preqin.</p>
<p style="text-align: justify;">Also in contrast to the venture capital investments in the quarter, majority of the large exits globally took place in the US, while from Asia, there was only one exit deal that made it to the top 10 list.</p>
<h4 style="text-align: center;"><em><strong>Venture Capital-Backed Exits in Q2 2017 by Region</strong></em></h4>
<p style="text-align: justify;"><a href="https://media.dealstreetasia.com/uploads/2017/07/exits-region.png"><img loading="lazy" decoding="async" class="size-full wp-image-76927 aligncenter" src="https://media.dealstreetasia.com/uploads/2017/07/exits-region.png?resize=627,421" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/exits-region.png?w=627 627w, https://media.dealstreetasia.com/uploads/2017/07/exits-region.png?resize=300,201 300w" sizes="(max-width: 627px) 100vw, 627px" data-recalc-dims="1" /></a></p>
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<p>The largest exit announced in Q2 was the $3.4 billion sale of Chewy, Inc. to PetSmart, Inc, while a $400 million secondary level purchase by Softbank in Paytm was the only transaction from Asia to find a place in the top ten exit deals.</p>
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<p style="text-align: justify;">According to the Preqin data, thirty-three venture capital-backed IPOs were announced in the quarter, worth 30% of overall exit value.</p>
<p style="text-align: justify;">&#8220;Fund managers will be looking for exit activity to regain some momentum in the coming quarters, or they may have to start looking for alternative ways to release capital back to investors,” said Egidio.</p>
<h4 style="text-align: center;"><em><strong>Venture Capital-Backed Exits in Q2 2017 by Type</strong></em></h4>
<p style="text-align: justify;"><a href="https://media.dealstreetasia.com/uploads/2017/07/vc-exits-type.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-76928" src="https://media.dealstreetasia.com/uploads/2017/07/vc-exits-type.png?resize=610,429" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-exits-type.png?w=610 610w, https://media.dealstreetasia.com/uploads/2017/07/vc-exits-type.png?resize=300,211 300w" sizes="(max-width: 610px) 100vw, 610px" data-recalc-dims="1" /></a></p>
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<p><strong>Also Read:</strong></p>
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<p style="text-align: justify;"><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/74907-74907/" target="_blank" rel="noopener noreferrer">Global private debt funds raise $32b capital during Jan-May</a></strong></em></span></p>
<p style="text-align: justify;"><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/asia-venture-capital-global-dry-powder-72548/" target="_blank" rel="noopener noreferrer">As fund sizes increase, Asia-focused VCs hold one-third of global dry powder</a></strong></em></span></p>
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In the second quarter of 2017, about 2,062 venture capital-backed deals were announced worth a combined $47 billion.

Asian deals prop up global VC activity to record highs in Q2

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Asian deals prop up global VC activity to record highs in Q2

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