Led by Sequoia, U.S. VC Investment in China Swells
September 18, 2015
According to data from the PitchBook Platform, U.S.-based venture capital firms participated in 139 deals in China worth $3.55 billion in 2011. Investment plummeted the following year, with 86 deals involving U.S. firms valued at a combined $1.06 billion. After a similar 2013 (79 deals valued at $1.44B), VC investment in China exploded in 2014; U.S. firms took part in 139 investments worth $4.38 billion. While deal flow has considerably slowed in 2015 (74 such deals to date), the value of Chinese deals involving U.S. firms has remained sky-high; at $4.12 billion, it's on pace to break even the previous year's total.
Of the most active U.S. VCs in China since 2010 (listed below), Sequoia is the most noteworthy. With 119 investments, it far and away tops the list. Furthermore, a quarter of Sequoia's China-based investments have come in the past year, reflecting the firm's recent emphasis on investment in Asia. In fact, Sequoia has completed more deals in Asia than in the U.S. so far this year; if that trend remains through 4Q, it will be the first time that a non-U.S. region has garnered the majority of the firm's deal flow in a given year.
The most active U.S. VC firms investing in China since the beginning of 2010, along with their deal counts: