Last week (November 12 to 18), a total of 99 investments and acquisitions took place in China- a slight decline compared to the week before (105). Software as a service (SaaS) continued its dominance as the most preferred sector for Chinese investors. The 15 investments in SaaS accounted for 15% of the entire funds raised during the period. (See details in Chart-1).
The early stage fundings outnumbered acquisitions by a good margin- 14 Angel, 31 Series A, and 14 Series B, and acquisitions at 18. (See details in Chart-2).
Three Chinese conglomerates - Baidu (百度), Alibaba (阿里巴巴), and Tencent (腾讯)- actively participated in last week’s funding, of which Baidu engaged in three, Alibaba two and Tencent one.
Baidu participated in funding of NetEase Cloud Music, Xinchao Media and vcbeat.net
- On November 13, Chinese online music streaming platform NetEase Cloud Music (网易云音乐) raised USD 600 million in strategic round funding from Baidu, General Atlantic (泛大西洋投资), Boyu Capital (博裕资本) and others.
“Together with Baidu’s leadership in feed business and search content distribution capabilities in China, NetEase Cloud Music and Baidu look forward to working together to provide users with enhanced service through the strongest content distribution, and the highest quality content ecosystem.” said Wang Lu, vice president of Baidu.
NetEase Cloud Music could rival Tencent Music Entertainment (腾讯音乐娱乐集团) using the incoming funds.
- On November 14, Chinese advertising startup XinChao Media (新潮传媒) secured a USD 300 million from Baidu.
The funds would be used for business operations, promotion of elevator ads and to develop technology.
XinChao will use Baidu’s big data algorithms and AI technology to make its elevator ads more relevant, reported TechCrunch, an American online publisher of technology industry news.
- On November 16, Chinese healthcare innovation service platform VCBeat (动脉网) closed a Series A funding round led by Baidu’s financial affiliate Baidu Venture (百度风投), along with Long Hill Capital (长岭资本), Dalian Yi Fang Group (一方集团) and three other venture capital firms.
According to Chinese news website Sohu (搜狐), the fresh capital would be used to further improve VCBeat’s internal team, expand the coverage of technological innovation, and to officially launch its internationalization strategy.
Alibaba invested in 007 eService and Mobrella
- On November 13, Chinese online-to-offline (O2O) home furnishing platform 007 eService China Technology (神工007) raised USD 25 million in a Series C round from e-commerce mammoth Alibaba.
Chinese tech news aggregator 36kr.com (36氪) reported 007 would expand its operations across the nation, provide more integrated offline services, and team up with Alibaba in its new retail expansion. 007 would launch its services on Alibaba’s business-to-consumer (B2C) online retail website Tmall (天猫).
- On November 15, Mobrella (漂流伞), a Chinese mobile umbrella-sharing platform operated by Piaoliusan Technology (漂流伞科技有限公司), confirmed that it has closed a corporate round funding from Ant Financial, the financial arm of Alibaba.
Funds would be used to strengthen the team and for business expansion, according to Chinese online media NewSeed (新芽).
Tencent injected USD 14.39 million in QTrade
- On November 14, QTrade (上海快确信息科技有限公司), an over the counter (OTC) solution provider in China, announced that it has completed a Series A funding round with support from strategic investor Tencent.
A report published by The Passage team disclosed the investment round has reached CNY 100 million (USD 14.39 million). Tencent would have equity participation but not controlling power, according to QTrade’s official announcement. More details of the deal are available in Tencent invests USD 14.39 Mn in financial startup QTrade
Following is the list of highlighted investments last week.