Larosa Groups Investment Director Mr Xian Ling Hu Buoyed as VC Investment in China Soars to New Heights
Investors are plowing capital back into China's venture capital firms after shunning them for most of last year as they struggled to exit companies amid lackluster initial public offerings
Toronto, Canada, October 2, 2014 (Newswire.com) - China’s startups received a record amount of venture capital funding in the second quarter, driven by a flow of public offerings both at home and abroad and a pressing need for venture capital firms to deploy capital, Sonja Cheung reports for VentureWire. Investors injected $2.78 billion into Chinese companies in the second quarter, double the $1.39 billion invested in the same period a year earlier, according to data from Dow Jones VentureSource. That’s the largest quarterly amount since VentureSource started recording China data in 2006.
“Things are getting a bit warmer in China’s venture sector as the IPO markets are open again. Investors now have confidence that there’s a pretty reliable form of exit, and it’s encouraging that we’re seeing more U.S. listings,” said Hubert Tse, a partner at Chinese law firm Boss & Young who advises global and Chinese venture capital and private equity firms.
Other sectors that will prove rich pickings to venture capital firms include the finance, consumption and biotechnology sectors, pointed out Mr. Tse, noting that the government is either injecting its own money or encouraging other investment into these industries as it seeks to rebalance the economy.
Meanwile, European startups raised more than $2.8 billion from venture-capital investors in the second quarter of 2014, the highest quarterly total since 200, the WSJ’s Lisa Fleisher reports, citing VentureSource. “People who wait for the right moment are probably all investing now,” said Michiel Kotting, a partner at Accel Partners, a venture capital firm with offices in London.