VENTURE CAPITAL in GREATER CHINA Alternative Assets

VENTURE CAPITAL IN GREATER CHINA alternative assets. intelligent data. VENTURE CAPITAL IN GREATER CHINA

266 $54bn 20% active venture capital investors are based Total dry powder held by Greater China-based of all venture capital funds in market are in Greater China, 46 of which are located in venture capital fund managers. focused on Asia, representing 47% of aggregate Hong Kong. capital targeted.

Fig. 1: Five Most Active Greater China-Based Investors by Number of Venture Capital Fund Commitments No. of Known Venture Assets under Investor Type Location Capital Commitments Management ($bn) CDIB Capital Private Equity Firm Hong Kong 9 1.2 Shanghai S&T Venture Capital (Group) Government Agency Shanghai, China 9 1.5 Hunan TV and Broadcast Intermediary Corporate Investor Changsha, China 7 2.9 Tencent Corporate Investor Shenzhen, China 7 62.5 China Development Bank Capital Private Equity Fund of Funds Manager Beijing, China 7 17.4

Source: Preqin Venture Capital Online

Fig. 2: Five Largest Greater China-Based Venture Capital Investors by Assets under Management Investor Type Location Assets under Management ($bn) China Construction Bank Bank China 2,975.2 Postal Savings Bank of China Bank China 1,058.9 China Investment Corporation Sovereign Wealth Fund China 813.8 Ping An Insurance Group Insurance Company China 768.7 State Administration of Foreign Exchange Sovereign Wealth Fund China 474.0

Source: Preqin Venture Capital Online

Fig. 3: Five Largest Greater China-Based Venture Capital Fund Managers by Total Funds Raised in the Last 10 Years Total Funds Raised in Estimated Dry Firm Type Location Last 10 Years ($bn) Powder ($bn) China Reform Fund Management Private Equity Firm China 19.8 18.2 CDH Investments Private Equity Firm China 9.1 1.9 DST Global Private Equity Firm Hong Kong 7.2 1.8 IDG Capital Private Equity Firm (Investor) China 5.0 1.0 China Bright Stone Investment Private Equity Firm China 4.7 0.8 Management Group

Source: Preqin Venture Capital Online

Fig. 4: Five Largest Greater China-Based Venture Capital Funds in Market (As at April 2017) Fund Firm Type Target Size ($bn) China State-Owned Capital Venture Investment Fund China Reform Fund Management Venture Capital (All Stages) 29.0 Shanghai Integrated Circuit Investment Fund Shanghai Integrated Circuit Investment Fund Venture Capital (All Stages) 7.5 Guangxi Beibu Gulf Industrial Investment Fund Guangxi Xijiang Venture Investment Venture Capital (All Stages) 3.2 Baidu Capital Baidu Capital Expansion/Late Stage 2.9 SummitView IC Industry Fund Summitview Capital Venture Capital (All Stages) 1.6

Source: Preqin Venture Capital Online

Fig. 5: Annual Greater China-Based Venture Capital Fundraising, Fig. 6: Annual Asia-Based Venture Capital Fundraising, 2006 - 2017 YTD (As at April 2017) 2006 - 2017 YTD (As at April 2017) 120 25 180 25 158 100 Aggregate ($bn) Capital Raised 160 Aggregate ($bn) Capital Raised 100 20 140 20 126 124 122 80 120 112 67 15 100 15 63 60 100 90 92 93 60 53 80 74 42 42 41 10 65 10 40 33 60 No. of Funds Closed of Funds No. 28 Closed of Funds No. 21 5 40 5 20 20 13 4 0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD Year of Final Close Year of Final Close No. of Funds Closed Aggregate Capital Raised ($bn) No. of Funds Closed Aggregate Capital Raised ($bn) Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 7: Investors Targeting Greater China-Focused Venture Capital Funds by Investor Location Fig. 8: Greater China-Focused Venture Capital Investors by Type

Fund of Funds Manager 75 North America 194 Corporate Investor 75 Public Pension Fund 58 Greater China 180 Foundation 45 Investment Company 38 Far East 82 Insurance Company 37 Government Agency 37 West Europe 59 Private Sector Pension Fund 32 Private Equity Firm 31 Australasia 21 Endowment Plan 25 Asset Manager 25 Rest of World 18 Bank 24 Family Office 19 Middle East 7 Other 40 0 50 100 150 200 250 0 10 20 30 40 50 60 70 80 No. of Investors No. of Investors Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 9: Number of Venture Capital Deals* in Asia by Location, Fig. 10: Aggregate Value of Venture Capital Deals* in Asia by 2007 - 2017 YTD (As at April 2017) Location, 2007 - 2017 YTD (As at April 2017) 4,500 60 4,000 50 3,500

3,000 40 2,500 30 2,000 No. of Deals No. 1,500 20

1,000 ($bn) Value Deal Aggregate 10 500 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD ASEAN Greater China Northeast Asia South Asia Other ASEAN Greater China Northeast Asia South Asia Other Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

*Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt.

Fig. 11: Proportion of Number of Venture Capital Deals* in Asia Fig. 12: Number and Aggregate Value of Venture Capital Exits in by Industry, 2007 - 2017 YTD (As at April 2017) Asia, 2007 - 2017 YTD (As at April 2017) 100% 350 45 90% 300 39.7 40 Aggregate Exit Value ($bn) 80% 35 70% 250 60% 30 50% 200 25 40% 150 20

30% of Exits No. 16.1 16.3 15 Proportion of DealsProportion 20% 100 12.3 10 10% 9.1 8.0 50 7.5 6.2 0% 4.4 5 2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 1.1 0 YTD 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Internet Telecoms Software & Related YTD Other IT Consumer Disc. Business Services ASEAN Greater China Healthcare Food & Agriculture Industrials Northeast Asia South Asia Semic. & Electronics Cleantech Other Aggregate Exit Value ($bn) Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online

Fig. 13: Five Largest Venture Capital Deals* in Asia, 2016 - 2017 YTD (As at April 2017) Investment Deal Size Primary Portfolio Company Stage Investor(s) Date (mn) Industry CCB Trust, China Development Bank Capital, China Ant Financial Apr-16 Series B/Round 2 4,500 USD Investment Corporation, China Life Insurance Company, Internet China Post Capital, Primavera Capital Baillie Gifford, Capital Today, China Development Bank Capital, CPP Investment Board, DST Global, Hillhouse Meituan-Dianping Jan-16 Unspecified Round 3,300 USD Internet Capital Management, Sequioa Capital, Temasek Holdings, Tencent, Trustbridge Partners Alibaba Group, Ant Financial Serivce Group, BlackRock, Didi Chuxing** Jun-16 Unspecified Round 2,800 USD Oppenheimer Alternative Investment Management, Telecoms Softbank, Tencent Baidu, CBC Capital, China Life Insurance Company, China Taiping Insurance, China Vanke Co. Ltd. CITIC Securities, Uber China Jan-16 Series B/Round 2 2,000 USD Telecoms CMBC Private Banking, Guangzhou Automobile Co. Ltd., HNA Group, Uber Technologies, Inc. GIC, Khazanah Nasional Berhad, Primavera Capital, Cainiao Mar-16 Unspecified Round 10,000 CNY Logistics Temasek Holdings

Source: Preqin Venture Capital Online

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*Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt. **The deal is part of a $7.3bn round of funding, which includes $2.8bn in venture debt funding.