4Q VC Deals Up 6% Over Last Year

Filed in archive Venture Capital on February 25, 2008

Xorte is reporting that venture capital deals in the fourth quarter of 2007 were up 6% over that same period of 2006. The fourth quarter saw 60 deals, with $660 million being invested in China compared to 63 deals for a value of $622 million in the fourth quarter of 2006.

For the year as a whole, the big winner in 2007 on China's venture capital scene was the consumer and retail sector. It saw a record $1.25 billion invested in 94 deals last year. That's a growth rate of 83% over 2006.

Information technology companies got a smaller piece of the venture capital pie last year. Funding for IT dropped about 9%. But it was still the largest single market sector of VC funds, with 110 IT companies in China racking up about $992 million in venture funding last year. Half the deals and most of the money went to Internet-based information services companies.






Venture funding for healthcare more than doubled in 2007. Twenty-one deals in the healthcare industry took in $175 million in VC funding in China last year. In 2006, only $86 million went into the healthcare industry from VC coffers.

Energy deals almost disappeared from the venture capital menu in 2007. Only $31 million when into the energy sector last year, compared to $421 million in 2006, according to Xorte.

The majority of VC deals were first round seed money. About half of all VC funding went into second round funding agreements. That was up 15% from 2006.