China continued to top the venture capital (VC) funding activity both in terms of volume as well as value and was way ahead of its peer countries in the Asia-Pacific (APAC) region during the second quarter (Q2) of 2020, according to GlobalData, a leading data and analytics company.
VC funding activity in the APAC region remained inconsistent during the COVID-19-hit Q2. While VC deal volume, after decreasing from 621 in April to 463 in May rebounded marginally to 476 in June, deal value registered consistent decrease from US$8.5bn in April to US$7.6bn in May and US$6.6bn in June.
Amid these challenging times, China continued to maintain its dominance with the country accounting for close to 50% of the total VC deal volume in Q2. China’s share as a proportion of total deal value was also above the 70% mark during all the three months of Q2.
Aurojyoti Bose, Lead Analyst at GlobalData comments: “Several areas or companies with clear value proposition and enhanced relevance during this crisis are witnessing renewed interest. Edtech and online grocery retail are among such areas, which have been gaining significance with enhanced use of online platforms during COVID-19. Companies active in healthcare and medical systems space are also gaining attention. Interestingly, China has several companies working in these areas and VC investors did not seem to hesitate in placing bets in such companies.”
Some of the notable deals announced in China during Q2 included US$1bn raised by COVID-19 testing equipment maker MGI Tech; US$750m raised by online learning platform Zuoyebang; and US$500m raised by online grocery start-up MissFresh.
India, Japan, South Korea and Singapore were the other top four markets by deal volume while India, Singapore, Japan and Australia were the other top four markets in terms of value. Most of the countries in the region showcased some recovery signs in June but are yet to touch April levels.
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