Global venture capital transactions witnessed significant uptrend this year with deals worth USD 47 billion in the April-June quarter, says a report. The largest proportion of deal value came from Asia, which contributed 47 per cent to the deal value this year so far, the report by alternative investment research firm Preqin said.
Venture capital deal value bounced back during the first half of 2017, with a record-setting second quarter which saw aggregate deal value rising to USD 47 billion, the report said.
Since 2013, Asia’s share of the number and aggregate value of venture capital deals globally has grown consistently and as of July 2017, Asia accounted for 47 per cent of deal value for 2017 year-to-date – the most of any region, as well as 31 per cent of all deals, it said.
“The majority of deals in the region (Asia) occurred in Greater China, with 901 transactions representing USD 28 billion in aggregate deal value, followed by India with 448 deals for USD 6 billion,” said the latest Preqin Private Equity & Venture Capital Spotlight report.
Within Southeast Asia the majority (94) of transactions took place in Singapore, while Indonesia accounted for the largest proportion (USD 1.4 billion) of deal value, the highest in the Far East.
In terms of venture capital exits, Greater China has generated the majority (USD 7.6 billion) of capital from exits since the start of 2016, while India has seen the most exits (144) over the same period, the report added.
Moreover, going forward investor appetite is also bullish.
Majority (85 per cent) of Asia headquartered investors are targeting Asia-focused funds in the next 12 months, while more than half of North America-based investors also plan to target the region (Asia), followed by a third of those based in Europe.
“Among all investors surveyed, 47 per cent indicated they would be targeting Asia-focused funds over the next 12 months,” the report said.