The last year, 2017, proved to be a landmark in Asian economic history. As per records, for the first time, Private Equity (PE) and Venture Capital (VC) investments in South East Asia overtook Europe.
According to Singapore Venture Capital & Private Equity Association (SVCA), Private equity (PE) and venture capital (VC) investments into South-east Asia hit a record US$23.5 billion in 2017.
“While North America continues to capture the lion’s share of PE and VC financing (US$275.2 billion, constituting 48.4 per cent); investments into Asia grew a remarkable 37.6 per cent to reach US$158.4 billion, constituting 27.8 per cent of global investments, surpassing Europe for the first time.”
VC financing, from US$1.7 billion in 2014 increased 4.8 times amounting US$8 billion in 2017. Seed and Series A investments experienced a good rise from US$39.5 million in 2014 to US$83.1 million in 2017. The report further states that Series C investments grew from US$738 million to US$6.3 billion, accounting for 79 per cent of total venture investment in 2017.
“The growth momentum of these deals and size of these rounds have attracted strong participation from corporate venture, hedge funds and private equity blurring traditional boundaries,” states the report.
The growth rates shows, Series A and Series B investments have been attracting investors more compared to Series C investments. From 2014, average round sizes of seed, Series A and Series B investments have been up-swinging, growing around 12 per cent per annum since 2014 to reach US$0.8 million for seed, US$6.4 million for Series A, and US$19.4 million for Series B. Series C investments so far appeared a bit flat with its average round size at around US$34 million