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Watch out Silicon Valley, Asia’s VC space has you in its sights

By NexChange
Venture Capital

Silicon Valley may have Apple, Google, and Facebook but as far as venture capital investments are concerned, Asia’s beginning to give it a serious run for its money.
“The venture capital industry in Asia has seen strong growth over the past year, and in Q3 the aggregate value of deals was comparable to the total value of deals in North America. India and China, the largest part of the Asian industry, marked 709 financings in the quarter, worth a combined $16.9bn. There were 932 venture capital deals in North America in the same period, worth an aggregate $17.5bn.”
Preqin adds that total Q1 to Q3 venture capital investments in China and India have surged to $36.2 billion – an over 180% climb from 2014’s $19.9 billion total – bringing Asian VC investments just $17 billion shy of North America’s $53.5 billion for the same time period.

Nine of the ten largest venture capital deals in the third quarter were based in Asia as well, with Didi Kuaidi’s two recent rounds bagging the top two spots.

However, North America may still have a chance to stretch their lead. While deal numbers in the west has fallen, deal sizes continue to climb with some late stage and debt financing deals reaching “record levels.”

Deal numbers in Asia are still climbing though, as Preqin’s Christopher Elvin notes:
“The venture capital industry is developing in two different directions between emerging and mature markets. In emerging markets, particularly in Asia, rapidly developing economies like China and India are providing increasing numbers of opportunities for investors and fund managers. While average deal size is increasing slightly, the key driver of growth is the increasing number of deals.”
Photo: brefoto

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