VC funding in Asia falls 24% in June quarter due to reduced activity in China

Bangkok, Thailand. Photo: Pixabay

Global venture capital funding in startups fell 2% in the quarter ended 30 June from the preceding quarter, with deal activity in Asia slowing even as the US reported a record number of deals, according to a report.

Investments in the US, Europe and Asia totalled $53 billion for the June quarter. The total number of deals, however, increased by 2% to 3,474 for the quarter, said the report by market intelligence platform CB Insights along with consulting firm PwC.

While Asia came close to surpassing North America’s deal activity in the third quarter of 2018, the region’s deal activity has since declined. It fell 24% in the June quarter.

That compares with 48 and 51 mega-rounds in the December and March quarters respectively.

The slowdown in Asia was led by reduced deal-making in China. However, funding in India continues to remain strong.

Mint reported on 30 June that startups in India have raised a record $3.9 billion from venture capitalists in the six months ended 30 June, as the world’s biggest investors doubled down on their bets in the country buoyed by the Flipkart-Walmart deal last year.

Sector wise, internet companies raised the maximum capital, $12 billion in the quarter, followed by healthcare and mobile and telecom firms, which raised $4.6 billion and $3.1 billion, respectively, according to the report.

In the quarter ended 30 June, exits through mergers and acquisitions (M&A) remained flat at $162 billion, but exits through initial public offerings shot up to $33 billion, from $15 billion and $16 billion in the preceding two quarters, respectively.

This was driven by a slew of public market listings in the US ranging from Uber and social network Pinterest, to workplace collaboration platform Slack and Zoom Video Communications.

This article was first published on livemint.com

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.