Half Of Venture Capital Flows To The Internet In One Quarter

With China's Internet users breaking 80 million, the Internet venture capital which has been going downhill since the second half of 2000 has finally got a new look. The newly released Zero2ipo Qing Ke China venture capital survey in the first quarter of 2004 shows that the recovery of the Internet industry has led to partial changes in the structure of the investment industry.

The survey showed that the industries with the largest investment in the quarter were Internet, telecommunications / telecommunications, IC, software and traditional industries. Among them, the Internet industry won the championship with close to the total score of 50% of the total investment (mainly from four funds led by Softbank and Japan) to the huge injection of 8200 yuan by Alibaba.

A total of 35 Chinese and foreign venture capitalists invested in 33 Mainland and related enterprises, with a known amount of $216 million, compared with the fourth quarter of 2003, according to Zero2ipo, a venture capital research and consulting company.

Although the Internet has the largest amount of money, the number of Internet users ranked third, and telecommunications / Telecommunications ranked first, followed by IC, traditional industries and biomedicine.

A total of 7 telecommunications and telecom start-ups have successfully financed the venture. The research center of the Qing Ke venture capital believes that broadband applications, mobile Internet and other data services will receive more attention in 2004 with the development of broadband users and the further development and integration of telecommunications networks and the Internet.

In the first quarter of this year, $216 million of funds went into their field of vision. The result is that the pan IT field is still the most attractive field for venture capital companies to invest in the first quarter of this year. As a result, Zero2ipo has been highly sensitive to venture capital investment in mainland China.

But in the subdivision, the recovery of the Internet industry has made it the biggest winner of the investment this quarter. The Internet industry has invested nearly 50% of its total investment (mainly from four funds of Japan, led by Softbank, Japan, 8200 yuan of huge injection to Alibaba), followed by communications / telecommunications, IC, software and traditional industries.

This is the latest release of "Zero2ipo Ching Ke - China venture capital survey in the first quarter of 2004," the report shows.

The survey also shows that a total of 35 Chinese and foreign investment institutions have invested in 33 Mainland and mainland related enterprises.

The estimated investment amount of US $216 million is a substantial increase compared with the fourth quarter of 2003. From the perspective of investment volume, a total of 7 telecom / Telecom start-ups have successfully financing, and communications / telecommunications, IC, Internet, traditional industries and biopharmaceuticals are among the top ones.

In the first quarter of this year, the performance of the two types of investors in mainland China and foreign capital is very similar: the investment volume of the two types of investment institutions in China and foreign countries is roughly the same, but in terms of investment amount, foreign investment organizations are far ahead of the rest in the investment volume of.

Local venture capital invested a total of 14 enterprises in the quarter to invest $21 million 750 thousand, and foreign venture capital institutions invested 16 enterprises in the quarter, with a total investment of US $185 million.

In the industry orientation of investment, foreign venture investment is still concentrated in the generalized IT, while local venture capital investment is still relatively scattered, but the investment in the generalized IT field has increased. It reflects that when the industrial situation is improving, the adjustment of investment strategy by local institutions, investment behavior is still the main feature of investment behavior of foreign venture capital institutions, while the characteristics of local venture capital holding companies are not outstanding in this quarter.

The withdrawal of IPO continued to be active in the fourth quarter of 2003. A total of 12 Chinese and foreign venture capitalists successfully withdrew from the 11 projects. The total withdrawal amount was 41 million 740 thousand USD. In the quarter, a total of 3 VC supported enterprises were successfully listed. 5 of the investments in the survey have been withdrawn or partially withdrawn through 3 IPO.

At the same time, the backlog caused by the low tide of the industry has also led to the withdrawal of a considerable number of organizations as the focus of 2004. These two factors will have a positive impact on the withdrawal in 2004.

In addition, more IPO will enhance the performance of relevant institutions and greatly enhance the confidence of investment institutions in the future.