So, uh ... 'Oh no! I hate it when that happens, boss. I hate it when low value deals dominate.' Shut up, you idiot! You don't even know what we're talking about. 'What are we talking about then?' It's a PR email from GlobalData. 'Oh, those guys again.' They're all right, Voice. And later this afternoon ... 'What?' Detlef again. 'Brilliant!' Yeah, yeah.
Anyway ...
For immediate release: 20th January 2020
So, uh ... 'Christ! Why can't you release immediately, boss, like they want you to?' Whose blog is this? 'Yours.' Exactly. Right -
Low value deals (investment <=US$10m) accounted for the majority of the venture capital (VC) investment volume in the Asia-Pacific region during the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.
Okay, okay. And is this a problem? 'I bet it is.' You know nothing. 'You know nothing.' Yes. And that's why we're a great team.
VC investment volume (with disclosed deal value) and value increased by 36.9% and 17.9%, respectively, in Q4 2019 compared to Q4 2018. The share of low value deals as a percentage of the total deal volume increased from 60.8% in Q4 2018 to 67.5% Q4 2019.
The share of low value deals across all the funding size ranges increased in Q4 2019 compared to Q4 2018. Within the low value deals, the highest number of deals was announced in the range of US$1-5m.
Okay, okay. But what about the other hand? 'Er ... they haven't said anything about a hand, boss. Any hand.' Jesus! Will you trust me? Please!
On the other hand, the top 20 deals announced during the quarter accounted for more than 50% of total deal value in 2019. While Q4 2018 witnessed three billion dollar deals (investment >=US$1000m), Q4 2019 witnessed announcement of four such deals.
Some of the notable deals announced during Q4 2019 included US$3.7bn funding in Tenglong Holdings, US$3bn raised by Beijing Kuaishou Technology and US$1.5bn funding in Oravel Stays (OYO Rooms).
You see, Voice? 'Yeah, yeah. So you're right again. Congratulations.' Thank you.
[I'm just glad it wasn't the Hand of Glory, like in Angel Heart. That would have been utterly bizarre. Do you know what I mean, dear reader(s)? Thankfully, GlobalData aren't a bunch of total lunatics.]
Okay, okay. There's more of, uh ... all that, but I want to jump to Bose, and - 'What? Who?' Bose. Aurojyoti Bose. 'Oh, him again.' Yes, him again. / Something about China ...
Aurojyoti Bose, Financial Deals Analyst at GlobalData, says: "Investors still have lot of interest in China but trade tensions, slowdown and mounting debt made investors cautious and kept investors away from committing big ticket investments. However, the US signing trade deal with China on 15 January 2020 is expected to ease some of the investor concerns and fuel funding activity in the country."
Thank you, Aurojyoti!
Well, I suppose low value deals are a problem, BUT(!) ... I'd rather have low value deals than no deals at all. Do you know what I mean, dear reader(s)? Having said that ... I want a big deal with a major record company. 'Ha! I knew you would squeeze music into this post somewhere, boss. You're incorrigible.' Shut up, Voice! There's no harm in it.
ENDS
...
Anything else? Not much at the moment, no. I'll be writing another post this afternoon, with our Detlef. Well, not writing it with him. It's a PR email. 'What about this time?' Funds. Funds that are flowing. 'That's nice.' Yeah.
So, later(s), kook(s)!
