China: IDG Capital scores 17 exits, 15 portfolio firms cross $1b valuations in 2016

IDG Capital has said it had a bumper 2016, scoring 17 exits, even as three of its portfolio companies got listed during this period. The China-focussed VC firm further said that the 15 companies it had backed had achieved valuation of $1 billion or more last year, taking the total number of unicorns in portfolio to 26.

The VC firm shared these numbers in a Wechat post, without divulging its investment returns.

According to a reports in Chinese media, including this story in China Money Network, IDG had said that around 36 portfolio companies had raised new funding rounds in 2016. These include artificial intelligence start-up SenseTime, home automation firm Rokid, e-commerce company Mogujie, fashion company Magmode, and online video platform Bilibili.

Also Read: IDG Capital, Breyer raise $1b to invest in Chinese startups amidst slowing investments

Among the unicorns IDG has backed are Chinese snack food e-commerce platform Three Squirrels, rollable display developer Royole Corporation, logistics company Best Logistics, and mobile app data tracker App Annie.

The three IPOs were Photo retouch app and social networking firm Meitu, and flavored duck neck and leisure snack maker Zhou Hei Ya, who both went public in Hong Kong. Shoe-maker Guangzhou Top Score Shoes had also made its IPO debut on A-share market.

Also Read: China: Wanda, JD, others pick stake in lithium battery maker Yinlong for $432m

Legend Pictures, a Hollywood film production house that produced “Inception” and “Pacific Rim”, was touted as one of IDG’s strategic sale exits. It invested $12.26 million in the company and was later acquired by Dalian Wanda Group for $3.5 billion in cash in January 2016.

Last year, DEALSTREETASIA had reported that IDG Capital Partners and Silicon Valley investor Breyer Capital had reached the final close for their $1 billion fund to invest in startups in China, and had added that the new vehicle – IDG Capital Fund III – would  focus on investing in sectors such as technology, media & telecommunications, healthcare, energy, and consumer products, both in China as well as in global companies looking to enter the market. In July 2016, in a separate development, this portal had also reported that China Everbright Ltd., and IDG Capital Partners have teamed up to jointly launch China’s largest M&A fund with total committed capital of RMB 20 billion ($3 billion). The fund had hit its first close with half of the target amount raised.

Although IDG realized more returns on its investment, 2016 appeared to be the complete opposite for Wanda, as the Chinese conglomerate’s entertainment and film unit, Wanda Cinemas, had to call off an acquisition of Legendary Pictures and other assets seven months later, due to huge losses Legendary underwent.

Legendary had net losses of $323 million and $524 million in 2014 and 2015, respectively, as recorded in Wanda Cinemas’ regulatory filing of disclosures at the Shenzhen exhcange. The company was also $1.35 billion in debt.

Also Read:

China: Dalian Wanda unit closes $230m series B in smart parking app ETCP

China: Everbright M&A fund acquires Shanghai Film Art Academy

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.