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Cb insights asia-tech-investment-report

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Cb insights asia-tech-investment-report

  1. 1. THE ASIA TECH INVESTMENT REPORT A comprehensive, data-driven look at technology investment trends, top deals, active investors and strategic activity in Asia. May 23, 2017
  2. 2. The technology market intelligence platform. CB Insights software lets you predict, discuss, and communicate emerging technology trends using data in ways that are beyond human cognition. www.cbinsights.com 2
  3. 3. www.cbinsights.com 3See what other customers have to say at http://www.cbinsights.com/customer-love The most publicly reference-able customers of anyone in the industry A FEW OF OUR HAPPY CUSTOMERS Kate Barrett Director, New Enterprise Associates “With CB Insights we can quickly and reliably aggregate data across the investing landscape, from sector trends to financing activity. The intuitive user interface and robust set of features have made it a go-to resource for our team, and the customer support is second to none...”
  4. 4. www.cbinsights.com 4 From the NY Times to Bloomberg, CB Insights data is used by hundreds of leading media outlets every week “ACCORDING TO CB INSIGHTS…” CB INSIGHTS NEWS MENTIONS PER YEAR 62 9 16 211 490 1200 2200 2010 2011 2012 2013 2014 2015 2016
  5. 5. www.cbinsights.com 5 TABLE OF CONTENTS Asia Financing Trends China Financing Trends India Financing Trends Southeast Asia Financing Trends 8 32 40 47
  6. 6. SUMMARY OF FINDINGS 6www.cbinsights.com 500 STARTUPS IS MOST ACTIVE IN ASIA TECH INVESTING: Since Q1’16, 500 Startups has been the most active venture capital investor in the Asian market to VC-backed companies. The top three were rounded out by Matrix Partners China and East Ventures. CHINA’S LARGEST INTERNET GIANTS POISED TO BENEFIT FROM UNICORN EXITS: Of the 46 unicorns in China, 21 (46%) are backed by four of China’s largest internet giants – Alibaba, Baidu, JD.com, & Tencent – or their affiliates such as Ant Financial. Tencent has backed the highest number of Chinese unicorns at 15. MEGA-ROUNDS IN ASIA TECH BOUNCE BACK IN Q1’17: The number of $50M+ financings to VC-backed Asia tech companies rose 39% on a quarterly basis in Q1’17 to hit a five- quarter high. Note on Report Methodology: Please refer to slide 53 for complete methodology, including but not limited to: types of fundings and companies included in report, geographic scope of Asia, and countries excluded from report. $106 BILLION INVESTED ACROSS 5,019 DEALS SINCE 2012: In 2017 year-to-date, $19.3B has been invested across 458 deals to Asian-headquartered tech companies with venture capital funding. At the current run-rate deals are on pace to increase by 14% over 2016 totals, while funding is on pace to grow by 132%. ASIA TECH UNICORN CREATION DROPS FROM 2015 HIGH: On an annual basis, the creation of private companies with a valuation of a billion dollars or more declined 26% YoY from its peak in 2015 and has not seen a major pickup thus far in 2017 YTD. SEQUOIA CAPITAL CHINA AND TENCENT ARE TOP UNICORN HUNTERS IN ASIA TECH: Tencent Holdings and Sequoia Capital China have invested in the most unique Asian unicorns, each with over 10 unicorns in their portfolio. 62 ASIA UNICORNS MAKE UP $283.5B IN PRIVATE VALUE. Of the 7 decacorns in Asia, six are based in China including Didi Chuxing, Xiaomi, China Internet Plus, Lu.com, Bytedance, and DJI Innovation.
  7. 7. THIS REPORT ANALYZES INVESTMENT TRENDS TO VENTURE CAPITAL-BACKED TECH COMPANIES IN: 7www.cbinsights.com 1. Bangladesh 2. Bhutan 3. Brunei 4. Cambodia 5. China 6. Hong Kong 7. India 8. Indonesia 9. Japan 10. Laos 11. Malaysia 12. Mongolia 13. Myanmar 14. Nepal 15. North Korea 16. Pakistan 17. Philippines 18. Singapore 19. South Korea 20. Sri Lanka 21. Taiwan 22. Thailand 23. Timor-Leste 24. Vietnam
  8. 8. ASIA TECH INVESTMENT TRENDS www.cbinsights.com 8
  9. 9. Since 2012, VC-backed Asia tech startups have raised: $106.2 BILLION across 5,019 DEALS www.cbinsights.com 9
  10. 10. ASIA VC-BACKED TECH ANNUAL FUNDING HISTORY INVESTMENT ROARS BACK IN EARLY 2017 Through 2017 year-to- date, $19.3B has been invested across 458 deals to Asian- headquartered tech companies with venture capital funding. At the current run-rate deals are on pace to increase by 14% over 2016 totals, while funding is on pace to grow by 132%. www.cbinsights.com 10 2012 – 2017 YTD (5/5/17) $2.7 $4.5 $18.4 $36.9 $24.3 $19.3 400 618 1026 1343 1174 458 2012 2013 2014 2015 2016 2017 Investments ($B) Deals $56.44 (Full-Year Projection) 1337 (Full-Year Projection)
  11. 11. QUARTERLY ASIA TECH DEALS BOUNCE BACK IN Q1’17 On a quarterly basis, deal count broke 300 for the first time since Q1’16, breaking a three-quarter slump. Funding increased 107% on a quarterly basis, reaching $9.1B. Notable deals in Q1’17 included a $1.53B convertible note to iQiyi, a $1.4B Series J to Flipkart, and a $1.1B private equity financing to Koubei. www.cbinsights.com 11 ASIA VC-BACKED TECH QUARTERLY FUNDING HISTORY Q1’2 - Q1’17 $0.4 $1.0 $0.6 $0.7 $1.3 $0.8 $0.8 $1.7 $2.5 $3.0 $4.1 $8.8 $4.7 $9.4 $14.2 $8.5 $6.2 $7.4 $6.4 $4.4 $9.1 103 96 95 106 133 136 165 184 227 221 290 288 319 325 370 329 334 279 288 273 312 2012 2013 2014 2015 2016 2017 Investments ($B) Deals
  12. 12. 38% 43% 34% 34% 35% 25% 22% 23% 22% 21% 15% 16% 19% 16% 18% 6% 9% 8% 8% 8% 3% 2% 3% 5% 5% 3% 1% 4% 2% 2% 9% 6% 9% 12% 11% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Seed / Angel Series A Series B Series C Series D Series E+ Other SEED STAGE DEAL SHARE STAYS RANGE- BOUND Seed-stage deal share in the first quarter of 2017 remained consistent with the prior two quarters. Series A deal share fell to a five-quarter low in Q1’17, after making up 1/4th of all Asia tech deals in Q1’16. www.cbinsights.com 12 ASIA VC-BACKED TECH QUARTERLY DEAL SHARE BY STAGE Q1’16 – Q1’17
  13. 13. $0.8 $0.9 $1.0 $1.0 $0.5 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Median Early Stage Deal Size ($M) MEDIAN EARLY-STAGE DEAL SIZE CUT IN HALF Through Q1’17, median early-stage deal size decreased from $1M to $.5M. This follows three- quarters of minor increases in early-stage median deal size throughout 2016. www.cbinsights.com 13 ASIAN VC-BACKED TECH EARLY-STAGE MEDIAN DEAL SIZE Q1’16 – Q1’17
  14. 14. $72.5 $100.0 $34.5 $34.5 $100.0 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Median Late Stage Deal Size ($M) MEDIAN LATE-STAGE DEAL SIZE INCREASES Median late-stage deal size increased from $34.5M in Q3’16 to $100M in Q1’17 on the back of a host of mega- rounds including Flipkart’s $1.4B financing from eBay, Microsoft, and Tencent. www.cbinsights.com 14 ASIAN VC-BACKED TECH LATE-STAGE MEDIAN DEAL SIZE Q1’16 – Q1’17
  15. 15. RECENT $100M+ ASIA TECH MEGA-ROUNDS www.cbinsights.com 15 Q1’17 $1.53B $1.53B Convertible Note $1.4B $1.4B Series J $1.1B $1.1B Private Equity $500M Private Equity $450 Series D (Uxin Pai) $500M $450M *includes non venture-backed companies
  16. 16. MEGA-ROUNDS TO VC- BACKED ASIA TECH STARTUPS RISES IN Q1’17 The number of $50M+ financings to VC-backed Asia tech companies rose 42% on a quarterly basis in Q1’17 to hit a five-quarter high. www.cbinsights.com 16 28 25 26 24 34 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 NUMBER OF $50M+ ROUNDS TO VC-BACKED ASIA TECH COMPANIES PER QUARTER Q1'16 - Q1'17 Mega Rounds ($50M+)
  17. 17. 2016 SEES ASIA-TECH MEGA-ROUNDS DROP, BUT 2017 COULD REBOUND On an annual basis, the number of 50M+ rounds to VC-backed tech companies in Asia dropped 30% on a year- over-year basis in 2016. Through Q1’17, there have been 34 50M+ financings, which would put 2017 on track to top 2016’s figure by 32% if the pace holds up. www.cbinsights.com 17 12 18 73 146 103 34 2012 2013 2014 2015 2016 2017 NUMBER OF $50M+ ROUNDS TO VC-BACKED ASIA TECH COMPANIES PER YEAR 2012 - 2017 (Q1'17) Mega Rounds ($50M+)
  18. 18. UNICORN CREATION DROPS FROM 2015 HIGH On an annual basis, the creation of private companies with a valuation of a billion dollars or more has declined from its peak in 2015 and has not seen a major pickup thus far in 2017 YTD. www.cbinsights.com 18 NEW ASIAN UNICORNS BY YEAR 2010 – 2017 1 1 2 0 12 23 17 7 2010 2011 2012 2013 2014 2015 2016 2017 Unicorn Birth
  19. 19. $50.0 $46.0 $20.0 $18.5 $11.6 $11.0 $10.0 $8.0 $7.0 $5.9 $5.8 $5.0 $4.6 $4.5 $4.0 $3.8 $3.5 $3.0 $3.0 $3.0 $3.0 $3.0 $2.9 $2.0 $2.0 $2.0 $2.0 $1.8 $1.6 $1.5 $1.5 $1.4 $1.4 $1.2 $1.1 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 ASIA UNICORNS BY VALUATION Valuation 62 ASIA UNICORNS VALUED AT $283.5B IN AGGREGATE China-based Didi Chuxing and Xiaomi are the most valuable East- Asian unicorns with a combined valuation of over $95B. The next-largest private company, China group- buying giant China Internet Plus, is valued at $26B less than Xiaomi’s latest financing at $20B. www.cbinsights.com 19
  20. 20. TENCENT AND SEQUOIA CAPITAL CHINA ARE TOP UNICORN HUNTERS IN ASIA Tencent Holdings and Sequoia Capital China have invested in the most unique Asian unicorns, each with over 10 unicorns in their portfolio. DST Global and Qiming Venture Partners, have each backed 8. www.cbinsights.com 20 19 13 8 8 7 7 6 6 6 5 5 5 5 5 INVESTORS RANKED BY # OF PORTFOLIO COMPANIES IN ASIAN UNICORN CLUB Unicorn Investments
  21. 21. 500 STARTUPS IS MOST ACTIVE VC IN ASIA TECH SINCE Q1’16 Since Q1’16, 500 Startups was the most active venture capital investor in the Asian market to VC-backed companies. The top three were rounded out by Matrix Partners China and East Ventures. www.cbinsights.com 21 MOST ACTIVE VC INVESTORS IN VC-BACKED ASIA TECH COMPANIES Q1’16 – Q1’17 Rank Investor Rank Investor 1 500 Startups 10 Accel Partners India 2 Matrix Partners China 12 ZhenFund 3 East Ventures 13 Shunwei Capital Partners 4 SOSventures 13 BEENEXT 5 Sequoia Capital India 15 SBI Investment 6 IDG Capital Partners 15 Source Code Capital 7 Blume Ventures 15 Kalaari Capital 8 Sequoia Capital China 18 CyberAgent Ventures 9 SAIF Partners 19 Cherubic Ventures 10 IDG Ventures India 20 Golden Gate Ventures
  22. 22. TENCENT IS THE MOST ACTIVE CORPORATE INVESTOR Tencent Holdings made over 30 investments to VC-backed tech companies in Asia since Q1’16. Notable Q1’17 investments include participation in Flipkart’s $1.4B Series J, short video app maker Kuaishou’s $350M Series D, and online medical association firm Hao Daifu’s $200M Series D. www.cbinsights.com 22 MOST ACTIVE CORPORATES IN VC-BACKED ASIA TECH COMPANIES Q1’16 – Q1’17 Rank Investor Rank Investor 1 Tencent Holdings 13 Opt Ventures 2 SBI Investment 13 Samsung Ventures 3 CyberAgent Ventures 13 Rakuten Ventures 4 Brand Capital 13 Daiwa Corporate Investment 4 SMBC Venture Capital 13 Bertelsmann India Investments 6 Qualcomm Ventures 13 Dentsu Digital Holdings 7 Legend Capital 13 Alibaba Group 8 Nissay Capital 13 Foxconn Technology Company 8 Fosun Kinzon Capital 13 Salesforce Ventures 10 Bertelsmann Asia Investments 13 GREE Ventures 10 Baidu 13 Intel Capital 10 YJ Capital 13 Kunlun Worldwide
  23. 23. CORPORATE AND CVC FUNDS RETURN TO ASIAN TECH INVESTMENT Q1’17 saw a considerable increase in corporate venture investment participation, with $6.6B invested across 125 deals. This marks a five-quarter high in both deals and dollar participation by corporate VCs in Asia tech. www.cbinsights.com 23 CORPORATE PARTICIPATION TO VC-BACKED ASIA TECH COMPANIES Q1’16 – Q1’17 $3.6 $4.9 $3.3 $2.6 $6.6 108 97 118 85 125 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Investments ($B) Deals
  24. 24. 68% 65% 59% 69% 60% 32% 35% 41% 31% 40% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Other Investors Corp / CVC Deal Participation CORPORATE & CVC INVESTMENT IN ASIA TECH REBOUNDS IN Q1’17 The share of tech deals in Asia involving corporate and corporate venture capital participation increased from 31% in Q4’16 to 40% in Q1’17. www.cbinsights.com 24 CORPORATE PARTICIPATION IN DEALS TO VC-BACKED ASIA TECH COMPANIES Q1’16 – Q1’17
  25. 25. 105 89 100 95 101 112 91 92 98 89 65 49 53 31 38 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 China India Southeast Asia SOUTHEAST ASIA TRAILS CHINA & INDIA FOR TECH DEALFLOW China and India have averaged 98 and 96 VC- backed tech deals respectively per quarter since Q1’16. Southeast Asia has averaged 47 deals over the same time period. www.cbinsights.com 25 QUARTERLY DEAL ACTIVITY TO VC-BACKED ASIAN TECH COMPANIES Deals, China vs India vs Southeast Asia
  26. 26. $4.3 $6.4 $3.8 $3.6 $6.0$1.1 $0.5 $0.8 $0.4 $2.6 $0.3 $0.2 $1.5 $0.1 $0.2 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 China India Southeast Asia INDIA GAINS MATERIAL AMOUNT OF INVESTMENT Through Q1’17 India- headquartered VC- backed tech companies received $2.6B of investment largely on the back of Flipkart’s mega- round. Paytm parent One97’s $1.4B investment from SoftBank will augment India’s funding spike this year. www.cbinsights.com 26 QUARTERLY INVESTMENT ACTIVITY TO VC-BACKED ASIAN TECH COMPANIES $B, China vs India vs Southeast Asia
  27. 27. ASIA INTERNET INVESTMENT JUMPS Deals to internet companies in Asia jumped 11% in Q1’17, while funding increased by 230%. www.cbinsights.com 27 ASIA VC-BACKED TECH INTERNET INVESTMENT ACTIVITY Q1’16 – Q1’17 $5.0 $3.8 $3.2 $2.0 $6.6 218 181 183 168 186 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Investment ($B) Deals
  28. 28. ASIA MOBILE DEALS INCREASING Asia-based mobile & telecom companies received 96 financings through Q1’17, a 22% increase over Q4’16. Q1’17 funding, while marginally higher than Q4’16 with $2.2B invested, is still nearly a billion dollars lower per quarter than Q2’16 and Q3’16. www.cbinsights.com 28 ASIA VC-BACKED MOBILE & TELECOMMUNICATIONS INVESTMENT ACTIVITY Q1’16 – Q1’17 $1.0 $3.5 $3.0 $1.9 $2.2 97 79 77 79 96 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Investment ($B) Deals
  29. 29. IQIYI AND FLIPKART RAISE MASSIVE ROUNDS IN Q1’17 iQIYI raised $1.5B in a convertible note financing from Baidu, Sequoia Capital China, among others investors. Flipkart raised the largest financing in India since Q1’16, raising $1.4B in a massive Series J financing. The round was led by eBay, Microsoft, and Tencent Holdings. www.cbinsights.com 29
  30. 30. CHINA’S INTERNET GIANTS POISED TO BENEFIT FROM UNICORN EXITS Of the 46 unicorns in China, 21 (46%) are backed by four of China’s largest Internet giants – Alibaba, Baidu, JD.com, & Tencent – or their affiliates such as Ant Financial. Tencent has backed the highest number of Chinese unicorns at 15. www.cbinsights.com 30 CHINA UNICORNS BACKED BY BAIDU, ALIBABA, TENCENT, & JD
  31. 31. OUTSIDE OF CHINA, TENCENT AND ALIBABA LOOK TO INDIA Alibaba, its affiliate Ant Financial, and Tencent have backed four of India’s private tech companies valued at $1B+. Tencent has also backed Asian tech unicorns CJ Games, in Korea, and motorbike ride-hailing service Go-Jek, in Indonesia. www.cbinsights.com 31 ASIA UNICORNS BACKED BY BAIDU, ALIBABA, TENCENT, & JD OUTSIDE OF CHINA
  32. 32. CHINA FINANCING TRENDS www.cbinsights.com 32
  33. 33. $4.3 $6.4 $3.8 $3.6 $6.0 105 89 100 95 101 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Investments ($B) Deals CHINA TECH FUNDING JUMPS IN Q1’17 In Q1’17, China- headquartered VC- backed tech companies received $6B across 101 deals. Notable Chinese financings included a $500M private equity financing to used car auction platform Uxin Pai, a $450M Series D to bike-share app Ofo, and a $375M corporate minority to real estate brokerage Homelink. www.cbinsights.com 33 CHINA VC-BACKED TECH QUARTERLY TREND Q1’16 – Q1’17
  34. 34. 7% 11% 15% 13% 7% 32% 27% 20% 18% 26% 30% 27% 26% 26% 29% 12% 20% 18% 15% 16% 5% 6% 3% 8% 13% 5% 1% 3% 3% 2% 10% 8% 15% 17% 8% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Seed / Angel Series A Series B Series C Series D Series E+ Other CHINA SEED-STAGE DEALS DECREASE Seed-stage deal share in China tech decreased in Q1’17 from 13% to 7%. Series A deals increased over the same time period, from 18% to 26%. www.cbinsights.com 34 CHINA VC-BACKED TECH QUARTERLY DEAL SHARE BY STAGE Q1’16 – Q1’17
  35. 35. 63% 58% 50% 52% 55% 30% 34% 34% 32% 31% 3% 3% 7% 6% 6% 2% 2% 4% 4% 3% 2% 2% 5% 6% 5% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Internet Mobile & Telecommunications Software (non-internet/mobile) Computer Hardware & Services Electronics CHINA INTERNET DEALS RETURN China-based internet companies received 55% of deal share as a percentage of total deals. This marks a three- quarter increase of 5 percentage points since Q3’16. Mobile & telecom declined from 34% of deal share to 31% over the same period of time. www.cbinsights.com 35 CHINA VC-BACKED TECH QUARTERLY DEAL SHARE BY SECTOR Q1’16 – Q1’17
  36. 36. IQIYI, LU.COM, DIDI CHUXING RAISE BILLION-DOLLAR ROUNDS iQIYI, P2P lender Lu.com, and ride-share giant Didi Chuxing all raised billion dollar+ rounds since Q1’16. Other top deals over the past five quarters to VC- backed China tech companies include a $450M round to bike- share app Ofo and a $690M financing to Chinese ticketing app Weiying. www.cbinsights.com 36
  37. 37. CHINA’S VC-BACKED DIGITAL HEALTH DEALS HIT HIGH IN 2016 Digital healthcare has become a burgeoning area of venture investment in China, though funding to VC- backed companies dropped 7% on a year- over-year basis in 2016. www.cbinsights.com 37 $12 $43 $343 $778 $724 $256 3 8 19 21 31 5 0 5 10 15 20 25 30 35 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 2012 2013 2014 2015 2016 2017 CHINA VC-BACKED DIGITAL HEALTH INVESTMENT TREND 2012 – 2017 YTD (Q1'17) Dollars ($M) Deals
  38. 38. CHINA ED TECH INVESTMENT FALLS FROM 2015 HIGH While education companies including TAL and New Oriental have risen to new highs in in the stock market, funding to venture capital-backed ed tech companies in China fell 37% on a year- over-year basis in 2016. www.cbinsights.com 38 $34 $46 $298 $1,060 $663 $100 8 20 26 35 18 2 0 5 10 15 20 25 30 35 40 $- $200 $400 $600 $800 $1,000 $1,200 2012 2013 2014 2015 2016 2017 YTD CHINA VC-BACKED ED TECH FINANCING TREND 2012 - 2017 YTD (Q1'17) Amount ($M) Deals
  39. 39. FINTECH INVESTMENT IN CHINA CONTINUES TO GROW 2016 saw VC-backed fintech investment in China rise 81% on a year- over-year basis. 2017 could see a new high for venture capital- backed fintech deals in China. www.cbinsights.com 39 $11 $35 $22 $170 $81 $33 8 9 22 32 35 3 0 5 10 15 20 25 30 35 40 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 YTD CHINA VC-BACKED FINTECH INVESTMENT TREND 2012 - 2017 YTD (Q1'17) Amount ($M) Deals
  40. 40. INDIA FINANCING TRENDS www.cbinsights.com 40
  41. 41. $1.1 $0.5 $0.8 $0.4 $2.6 112 91 92 98 89 Q1'16 Q1'17 Investments ($B) Deals TECH FUNDING JUMPS IN INDIA India-headquartered tech companies received 9 fewer financings compared to Q4’16, but total capital invested in the quarter jumped 550%. Notable financings included Flipkart’s $1.4B Series J, a $330M Series H to Olacabs, and a $200M Series A to Paytm E-Commerce. www.cbinsights.com 41 INDIA VC-BACKED TECH QUARTERLY TREND Q1’16 – Q1’17
  42. 42. 56% 55% 51% 51% 44% 19% 20% 16% 22% 15% 10% 18% 10% 11% 15% 4% 4% 4% 1% 4% 3% 1% 2% 3% 2% 3% 8% 1% 4% 5% 2% 9% 10% 16% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Seed / Angel Series A Series B Series C Series D Series E+ Other INDIA EARLY-STAGE DEALS DECREASE The share of early-stage (seed and Series A) deals declined through Q1’17, decreasing from 73% of deal share to 59%. Other deals, including corporate minority, convertible and other forms of venture capital, increased from 10% to 16%. www.cbinsights.com 42 INDIA VC-BACKED TECH QUARTERLY DEAL SHARE BY STAGE Q1’16 – Q1’17
  43. 43. 64% 66% 77% 68% 64% 29% 31% 20% 24% 31% 1% 1% 2% 2%4% 1% 1% 2% 3% 2% 4% 1% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Internet Mobile & Telecommunications Software (non-internet/mobile) Computer Hardware & Services Electronics INDIA INTERNET DEAL SHARE DECLINES India-based internet companies received 64% of deal share in Q1’17, four percentage points lower than the previous quarter. Mobile & telecom deal share rose from 20% in Q3’16 to 31% in Q1’17. www.cbinsights.com 43 INDIA VC-BACKED TECH QUARTERLY DEAL SHARE BY SECTOR Q1’16 – Q1’17
  44. 44. FLIPKART EASILY RECEIVES THE LARGEST DEAL IN INDIA The next largest financing over the last five quarters was to Olacabs, raising $330M in a Series H round also in Q1’17. Softbank Group provided the investment capital. www.cbinsights.com 44
  45. 45. INDIA E-COMMERCE FUNDING BOUNCES BACK ON FLIPKART MEGA-ROUND Flipkart, which raised $1.4B in March from the likes of Tencent, Microsoft, and eBay, propelled funding to India’s physical goods e- commerce startups to jump to $1.75B in the first quarter of this year vs. $948M in 2016. www.cbinsights.com 45 $322 $598 $3,164 $2,130 $948 $1,742 36 34 45 85 74 16 0 10 20 30 40 50 60 70 80 90 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2012 2013 2014 2015 2016 2017 YTD INDIA VC-BACKED PHYSICAL GOODS E-COMMERCE INVESTMENT TREND 2012 - 2017 YTD (Q1'17) Amount ($M) Deals
  46. 46. PAYTM PUSHES UP FINTECH FUNDING IN INDIA While VC-backed fintech investment in India saw a lackluster Q1’17, Softbank’s $1.4B investment into Paytm parent One97 Communications should put 2017 on pace for a new high in Indian fintech funding. www.cbinsights.com 46 $11 $35 $22 $170 $81 $33 8 9 22 32 35 3 0 5 10 15 20 25 30 35 40 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 YTD INDIA VC-BACKED FINTECH INVESTMENT TREND 2012 - 2017 YTD (Q1'17) Amount ($M) Deals
  47. 47. SOUTHEAST ASIA FINANCING TRENDS www.cbinsights.com 47
  48. 48. $330.6 $241.1 $1,460.6 $87.3 $191.6 65 49 53 31 38 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Investments ($M) Deals DEALS ARE UP IN SE ASIA, BUT FUNDING BELOW PEAK $191.6M was invested across 38 deals to Southeast Asian companies in Q1’17. This is an increase over Q4’16, but down significantly from Q3’16 in which $1.46B was invested across 53 deals. Funding spiked in Q3’16 from a $750M Series F financing to Grab, and a $550M Series B to GO- JEK. www.cbinsights.com 48 SOUTHEAST VC-BACKED ASIA TECH QUARTERLY TREND Q1’16 – Q1’17
  49. 49. 57% 65% 38% 52% 55% 26% 22% 32% 23% 21% 6% 4% 23% 3% 11% 2% 2% 6% 5% 2% 6% 2% 2%9% 4% 2% 10% 8% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Seed / Angel Series A Series B Series C Series D Series E+ Other SE ASIA SERIES B DEAL SHARE INCREASES Series B deals increased as a category from 3% to 11% of deal share. Early-stage deals (seed and Series A) maintained nearly 75% of deal share compared to Q4’16. www.cbinsights.com 49 SOUTHEAST VC-BACKED ASIA TECH QUARTERLY DEAL SHARE BY STAGE Q1’16 – Q1’17
  50. 50. 75% 73% 74% 77% 71% 25% 20% 26% 23% 29% 0% 2% 0% 0% 0% 2% 2% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Internet Mobile & Telecommunications Software (non-internet/mobile) Computer Hardware & Services Electronics MOBILE AND INTERNET DEALS DOMINATE SE ASIA Through Q1’17 Southeast Asia deals to the mobile sector increased from 23% to 29%. Internet sector deals decreased as a percentage of deal share from 77% to 71%. www.cbinsights.com 50 SOUTHEAST VC-BACKED ASIA TECH QUARTERLY DEAL SHARE BY SECTOR Q1’16 – Q1’17
  51. 51. GRAB AND GO-JEK LARGEST DEALS IN SE ASIA Singapore-based ride- hailing company Grab and Indonesia-based hyperlocal transport startup GO-JEK both received massive financings in Q3’16. The next largest funding went to Sea Group (fka Garena), the Singapore- based online gaming, e- commerce and digital financial services company. www.cbinsights.com 51 RANK DESCRIPTION 1 Singaporean ride-hailing mobile app 2 Indonesian on-demand transport, courier, food-delivery and shopping service 3 Singaporean digital entertainment, e- Commerce and digital financing services company 4 Indonesian e-Commerce platform 5 Malaysian internet TV and movie platform 6 Malaysian internet TV and movie platform 7 Singaporean consumer-to-consumer e- Commerce platform 8 Singaporean dating and social media mobile app 9 Singaporean e-Commerce delivery and logistics company 9 Indonesian peer-to-peer lending platform $30M Series B $30M Series A $147M Series E $90M Series B $45M Corporate Minority $35M Series B $32.5M Series D SOUTHEAST ASIA TOP DEALS Q1'16 - Q1'17 FINANCING ($M) $750M Series F $550M Series B $170M Series D COMPANY
  52. 52. SOUTHEAST ASIA FINTECH FUNDING OFF TO SLOW START IN 2017 Funding to venture capital-backed fintech companies in Southeast Asia fell 52% on a year- over-year basis in 2016. In the first quarter of 2017, venture capital- backed fintech companies in Southeast Asia raised $33M. www.cbinsights.com 52 $11 $35 $22 $170 $81 $33 8 9 22 32 35 3 0 5 10 15 20 25 30 35 40 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 YTD SOUTHEAST ASIA VC-BACKED FINTECH INVESTMENT TREND 2012 - 2017 YTD (Q1'17) Amount ($M) Deals
  53. 53. CB Insights (cbinsights.com) encourages you to review the methodology and definitions employed to better understand the numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your firm has been underrepresented, please send an email to info@cbinsights.com and we can work together to ensure your firm’s investment data is up-to-date. NOTES ON METHODOLOGY www.cbinsights.com 53 What is included: What is excluded: – Equity financings into emerging companies. Fundings must come from VC-backed companies, which are defined as companies who have received funding at any point from either: venture capital firms, corporate venture group or super angel investors. – Fundings of only private companies. Funding rounds raised by public companies of any kind on any exchange (including Pink Sheets) are excluded from our numbers, even if they received investment by a venture firm(s). – Only includes the investment made in the quarter for tranched investments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results. – Round numbers reflect what has closed – not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed. – Only verifiable fundings are included. Fundings are verified via (1) various federal and state regulatory filings; (2) direct confirmation with firm or investor; (3) press release; or (4) credible media sources. – Equity fundings to joint ventures and spinoffs/spinouts are included, given that they meet the VC-backed criteria. – “Asia” includes the following countries: Bangladesh, Bhutan, Brunei, Cambodia, China, Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, Nepal, North Korea, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Timor-Leste, Vietnam. – “Southeast Asia” includes the following countries: Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, Vietnam. – No contingent funding. If a company receives a commitment for $20M subject to hitting certain milestones but first gets $8M, only the $8M is included in our data. – No business development / R&D arrangements whether transferable into equity now, later or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included. – No buyouts, consolidations or recapitalizations. All three of these transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. – No private placements. These investments, also known as PIPEs (Private Investment in Public Equities), even if made by a venture capital firm(s). – No debt / loans of any kind (except convertible notes). Venture debt or any kind of debt / loan issued to emerging, startup companies, even if included as an additional part of an equity financing, is not included. If a company receives $3M with $2M from venture investors and $1M in debt, only the $2M is included in these statistics. – No government funding. Grants, loans or equity financings by the federal government, state agencies, or public-private partnerships to emerging, startup companies are not included. – Fundings and unicorns from the following countries are not included: Afghanistan, Armenia, Azerbaijan, Bahrain, Cyprus, Georgia, Iran, Iraq, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Maldives, Oman, Palestine, Qatar, Russian Federation, Saudi Arabia, Syrian Arab Republic, Tajikistan, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Yemen.
  54. 54. CBINSIGHTS.COM @ cbinsights info@cbinsights.com

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