MoneyTree™ China TMT Report 

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Q1 / Q2 2013

China recently introduced its first MoneyTree™ Report focusing on private equity and venture capital (PEVC) investment in the Telecommunications, Media and Technology (TMT) industry. The period of study for this report is Q1 and Q2 2013. In order to show trends and make comparisons, data from all four quarters of 2012 have also been included.

In the MoneyTree™ China TMT Report, there is an in-depth analysis of PEVC investments and exits by quarter, stage of development and region. It also takes a detailed look at the investments in IT, Internet and Telecommunications and Mobile Internet – the three most popular sectors in the TMT industry for PEVC investors.

We aim to share our observations and key findings with global professionals in the finance, investment and TMT sectors.


Download: MoneyTree™ China TMT Report
MoneyTree<sup>TM</sup> China TMT Report

PEVC investments in the TMT industry

  • In Q1 and Q2 2013, PEVC deals declined significantly in volume, and PEVC investment in TMT dropped in line with this trend.
  • The ratio of deals in TMT relative to all PEVC deals showed a remarkable rise against an overall decline. The average ratio for Q1 and Q2 2013 was 59%, against 46% for the same period in 2012.
  • Q2 2013 started to rebound in volume and value in comparison with Q1 representing an upward trend.

PEVC exists in the TMT industry

  • n Q1 2013, owing to the significant decline in IPO exits, strategic sales overtook IPOs to become the main exit channel.
  • Due to tighter IPO policies, there was a wider variety of exit types.
  • In Q2 2013, IPOs began to bounce back. Together with strategic sales they are expected to be the main exit routes for TMT investments.

Sector focus: IT, Internet, Telecommunications and Mobile Internet

  • In the IT sector, both deal volume and value were concentrated in the software and IT services subsegments.
  • In Q1 2013, both deal volume and value decreased significantly across all three sub-segments YoY.
  • In Q2 2013, deal volume in the software subsegment rose substantially while the average investment in a single deal decreased YoY.
  • Compared with the previous quarter, in Q2 2013, the IT services subsegment was unique in that it increased in both deal volume and value.

Contacts
Marcel Fenez
Global Leader E&M, China TMT Leader
Hong Kong
Tel: +[852] 2289 2628 Email
Jianbin Gao
Partner
Shanghai
Tel: +[86] (21) 2323 3362 Email