Dow Jones VentureSource: China-based companies raised $1.3 billion through 89 deals;
IPOs dropped slightly.
The FINANCIAL — 31 October 2011 – In the third quarter of 2011, investors put $1.3 billion into 89 deals for venture-backed companies in China, an 84% increase in investment and 19% increase in deal flow over the same period last year, according Dow Jones VentureSource. Through the first three quarters of 2011, venture investment rose though the increase was milder than that seen in the third quarter alone. During the first nine months, $4.4 billion was raised for 236 financing deals, a 13% increase in investment and 6% increase in deal flow over the year-ago period.
Initial public offerings (IPOs) of venture-backed companies dropped slightly in the third quarter as 29 IPOs raised $4.6 billion compared with 33 IPOs that raised $3.9 billion in the same period in 2010.
“With investors on pace to put a record amount of capital into Chinese companies this year, it appears that venture capitalists are focusing on rebuilding the pipeline after seeing a record 140 IPOs in 2010,” said Jessica Canning, global research director for Dow Jones VentureSource.
The median size of a venture capital deal during the third quarter of 2011 was $11.7 million, more than double the $5.1 million median in the same period last year.
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