Last week (November 19 to 25) a total of 79 investments and acquisitions materialised in China- 20 less than the week before. Software as a service (SaaS) continued to reign supreme in investments. The 15 investments took place in the SaaS accounted for 19% of the entire funds raised during the period. However, hardware tied with SaaS at the first place (See details in Chart-1).
The majority of last week’s funding remained in early stages - 28 Series A, 13 Angel, and 2 Seed. Moreover, acquisitions rose by 1 to 14 (See details in Chart-2).
Baidu (百度), Alibaba (阿里巴巴), and Tencent (腾讯) – had a quiet week. Let’s take a closer look at the most interesting investments.
On November 25, Chinese game developer and distributor iDreamSky (乐逗游戏) opened up its retail front for a planned Hong Kong initial public offering (IPO). The company set an indicative share price ranging between HKD 6.0 and HKD 7.8 apiece with 127 million shares on offer, targeting HKD 990 million (USD 126 million) in total, reported news publisher China Daily (中国日报网). Technology news portal itjuzi.com (IT桔子) reported Sony and JD.com invested USD 5 million each as well.
On November 22, China’s investment management service provider Value Simplex (熵简科技) secured CNY 100 million (USD 14.48 million) in Series A funding round led by smartphone maker Xiaomi (小米), reported itjuzi.com. Beijing Qingquanshi Investment Center (清泉石资本) and Harvest Investments (嘉实投资管理) participated in the round.
Value Simplex would use the proceeds to recruit talents, launch new products, and for research and development.
On November 20, Chinese commercial space launch startup LandSpace (蓝箭航天) closed a CNY 300 million (USD 43 million) Series B+ round led by China Growth Capital (华创资本). China Zhongji Investment (中冀投资), Juzhuo Capital (聚卓资本), the venture capital fund of 36kr.com along with existing investors such as Goldwind (金风科技), Chuangxiang Angel (创想天使), and Chung Tin Group Holdings (中天世纪) also committed funds.
The funds will be used for research and development of its core products including the medium-sized liquid launch vehicle system ZQ-2 and to set up infrastructure, according to 36kr.com. Chinese intelligent electric vehicle startup Leap Motor (零跑汽车) secured CNY 2 billion (USD 290 million) in a Series A round of financing jointly led by Shanghai Electric (上海电气) and CRRC Corporation (中车股权). Other participants included Gopher Asset (歌菲资本), Industrial Securities (兴业证券) and existing investor Sequoia Capital China (红杉资本).
The firm initially set the goal to raise CNY 2.5 billion (USD 360 million) in Series A. After the latest round, the company reached the unicorn status with a valuation of CNY 8 billion (USD 1.15 billion).
Leap Motor said the proceeds will be used for marketing activities, research and development of vehicles, EV battery, electric motor etc. The company also announced its partnership with Shanghai Electric on resource sharing, commented 36kr.com.
On 19 November, China’s community-based e-commerce platform Xiaoqule (小区乐) completed a USD 108 million Series A round co-led by GGV Capital (纪源资本), Vertex Ventures (祥峰投资) and SIG Asia Investment (海纳亚洲联合领投). Other investors included Matrix Partners (经纬创投), ShunWei capital (顺为资本), GF Xinde Investment Management (广发信德), Zhongwei Capital (众为资本), ZhenFund (真格基金) and Ping An Ventures (平安创投).
The fresh capital will be used to attract talents, upgrade supply chain and marketing.
Golden Education (高顿集团), a company focused on providing financial training and certification programs, received CNY 800 million (USD 115 million) in a Series C funding round from lead investor Hillhouse Capital (高瓴资本), reported 36kr.com. Morgan Stanley, Yonghua Capital (涌铧资本) and Vision Knight Capital (嘉御基金) participated in the round.
The proceeds will be used to build a lifelong education ecosystem and improve on artificial intelligence, big data and cloud computing technologies.
Check the list of major funding rounds below.