2014 was the year with the highest value for Venture Capital-backed companies according to Dow Jones VentureSource.
The value of venture capital (VC) in Chinese companies reached $25.5 billion last year, the highest level since 2006. It also doubled the 7.3 billion recorded in 2011
This rapid increase in venture capital investments in China is mainly due to two important aspects:
The first is the use of internet on mobile phones and other devices that has surpassed the use of internet from personal computers for the first time in July 2014 with 205 million users for mobile online shopping. 42% more than in December 2013.
The three biggest investments were Xiaomi, the world’s third largest smartphone maker $1.1 billion and DiDiDache ($700 million) and Kaidi Dache ($600 million), two taxi-hailing apps that have spread amazingly fast to users in cities like Shanghai.
The second is the relaxation initial public offerings (IPO) controls. There were 15 venture backed (IPOs) in 2013 and 61 in 2014. This trend is likely to inspire even more VCs to back companies.
The biggest IPO deal was by Huadian Heavy Industries Co Ltd in November, which raised 244.65 billion on the Shanghai Stock Exchange.