2012-中国创投暨私募股权投资市场2011年全年数据回顾——英文版_56页_2mb

China VC/PE Market Review 2011 Summary

Overview of China's VC/PE Market

The Chinese VC/PE market experienced significant growth in 2011, marked by a surge in fundraising, investment activities, and M&A transactions. The market showed a clear trend towards domestic RMB-based funds, with increased participation from both domestic and foreign institutions.

VC Market in 2011

• Fundraising: A total of 382 funds were raised by foreign and domestic institutions in 2011, up 141.8% year-on-year, reaching an all-time high.
• Capital Raised: The total capital raised amounted to US$28.20B, an increase of 152.5% year-on-year.
• RMB Funds: 351 RMB funds were closed, raising US$20.41B, a year-on-year increase of 140.4% in number and 197.1% in amount.
• USD Funds: 31 USD funds were closed, raising US$7.80B, an increase of 158.3% in number and 81.2% in amount.
• Reasons for Growth: The rapid development of domestic LPs and favorable policies for foreign RMB funds contributed to the fundraising boom.
• Investment Activity:
  • Number of Deals: 1,505 total investments, up 84.2% year-on-year.
  • Investment Amount: US$13.00B, a year-on-year increase of 141.4%.
• Early-stage Investments: Increased significantly, accounting for over 20% of all investments.
• Geographical Distribution:
  • Beijing: Ranked first in both the number of investment deals and investment amount.
• Industry Distribution:
  • Internet: Showed a ten-year high in fundraising and investment.
  • Industry Breakdown: The internet industry received the most attention, with a notable increase in both the number of deals and investment amount.

PE Market in 2011

• New Funds: 235 new PE funds were closed in 2011, up 186.6% year-on-year, marking a record high.
• Capital Raised: Total capital raised in the PE market was US$38.86B, up 39.7% year-on-year.
• RMB Funds: 209 RMB funds were raised, totaling US$23.41B, with a 194.4% increase in number and 119.2% in amount.
• Foreign Currency Funds: 26 foreign currency funds were closed, raising US$15.45B, with a notable increase in fundraising speed.
• Investment Activity:
  • Number of Deals: 695 total investments, up 91.5% year-on-year.
  • Investment Amount: US$27.59B, a year-on-year increase of 165.8%.
• Investment Strategy:
  • Growth Capital: Continued to lead in investment activity.
  • Real Estate: Showed a rapid increase in investment.
• Geographical Distribution:
  • Beijing: Maintained the lead in the number of deals.
  • Jiangsu: Gained the highest investment amount.
• Industry Distribution:
  • Energy & Mineral and Real Estate remained top industries for investment.
  • Clean-tech and Finance also saw significant investment.

M&A Market in 2011

• Number of Deals: Increased significantly compared to 2010, with 1,157 total M&A deals.
• Total M&A Value: Reached US$66,918.25M, a year-on-year increase.
• Domestic M&As: Became more active, with 985 disclosed deals.
• Cross-border M&As: Hit a new high in value, with a total of US$11,967.66M in VC/PE-backed deals.
• Industry Breakdown:
  • Energy & Mineral: Top industry with 11 deals and US$3,442.04M in value.
  • Clean-tech: Notable with 14 deals and US$2,147.39M in value.
  • Finance: 3 deals with US$1,582.8M in value.
• Exit Options:
  • Non-IPO Exits: Gained momentum, indicating a diversified exit strategy.
  • IPO Exits: Still a significant portion, but non-IPO exits showed more growth.

Chinese Enterprises' IPOs in 2011

• Total IPOs: 613 enterprises listed worldwide, with Chinese IPOs accounting for 58.1%.
• Domestic IPOs:
  • Number: 281, with a total financing amount of US$43,719.33M.
  • Financing Amount: US$43,719.33M, with the ChiNext market accounting for nearly half of the domestic IPOs.
• Overseas IPOs:
  • Number: 75, with a total financing amount of US$17,812.95M.
  • Main Exchanges: NYSE and NASDAQ were the primary markets for overseas IPOs.
• Industry Distribution:
  • Finance: Dominated with US$3,764.06M in financing amount (21.10% of total).
  • Bio/Healthcare: Second in financing amount with US$2,220.63M (12.50% of total).
  • Energy & Mineral: Also significant with US$1,688.39M (9.50% of total).
• ROI Analysis:
  • Domestic Exchanges: Average ROI of 8.22X.
  • Overseas Exchanges: Average ROI of 6.64X.
  • Note: The average ROI was calculated without the deal of SINOVEL, which had an ROI of 480X.

Market Change Analysis & Zero2IPO Insights

• Policies: Regulatory policies from 1999 to 2011 played a crucial role in shaping the market, including the establishment of the QFLP program and the implementation of the security review system.
• Trends:
  • RMB Funds: Dominated fundraising and investment.
  • VC/PE-backed M&As: Reached a ten-year high, with significant activity in various sectors.
  • IPOs: Domestic IPOs were concentrated in certain industries, while overseas IPOs were impacted by global economic conditions.
• Challenges:
  • Overseas IPOs: Decreased due to the European and U.S. debt crisis, turmoil in China concept stocks, and VIE-related issues.
  • Investment Costs: Increased due to the underperformance of domestic securities markets and fierce competition in the primary market, leading to a shift towards private placements and PIPEs.

This review highlights the dynamic nature of China's VC/PE market in 2011, emphasizing the growth of RMB funds, increased investment activity, and the concentration of IPOs in specific industries. The market was influenced by both domestic and international factors, with a notable shift towards non-IPO exits and cross-border investments.