July sees record 55 giant VC deals worth over US$15 billion

August 08, 2018 11:56
Venture capital investment in companies based in the Boston metro area has reached US$5.19 billion so far this year. Photo: Bloomberg

A total of 55 "supergiant" venture deals raised more than US$15 billion in July, setting what is likely an all-time record high or at least the highest number of big financing deals in a single month over the past 10 years, Crunchbase News reports.

Each of the deals amounted to US$100 million or more.

Six of the 10 largest venture capital (VC) financing rounds for the month involved Chinese startups, which raised US$5.31 billion, or 35 percent of the total, the report said.

JD Finance under JD.com raised US$1.9 billion, the highest for the month, in a series B funding round led by CICC Capital, China Securities, Citic Capital and BOGCGI.

China Media Capital followed, raising US$1.46 billion. Also among the top 10 are Suning Sports, WeWork China, Didi Chuxing and Zuoyebang, which raised funds ranging from US$350 million to US$600 million.

In the United States, Massachusetts is the biggest recipient of venture investments so far this year, according to Crunchbase data.

Investment received by companies based in Boston's metropolitan area alone has reached US$5.19 billion this year, outperforming New York City, which has received US$4.35 billion, but still behind Silicon Valley.

The Boston startups that received VC funding this year are engaged in biotechnology, enterprise software, artificial intelligence and consumer apps, among other fields.

Venture capital has enabled startups to gain financial and strategic support for research and development and business expansion, without having to hurry up to launch an initial public offering.

But Crunchbase News notes that in “Newtonian physics, a market that goes up will also come down”.

Aside from the escalating US-China trade conflict, fears of a change in the US monetary policy, the downward trend of tech shares such as Facebook, Twitter and Netflix, and the diminishing or disappearing paths to liquidity are all contributing uncertainty to the investment atmosphere for tech startups.

This article appeared in the Hong Kong Economic Journal on Aug 7

Translation by Jonathan Chong

[Chinese version 中文版]

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Hong Kong Economic Journal