PRINT THIS PAGE Venture capital investment in China up to $2.49bn in 200720/02/2008. Source: AltAssets. 
In 2007 venture capitalists invested $2.49bn across 241 deals in China, according to the China Quarterly Venture Capital Report, released by Dow Jones VentureSource. The amount invested was the highest since 2001, when $2.87bn was invested in 62 deals. It represents a five per cent increase over 2006, although deal flow was down by 14 deals in 2007. The fourth quarter saw 60 deals and $660m invested in China, a six per cent increase over the $622m invested in 63 deals in the fourth quarter of 2006.
The business/consumer/retail sector saw a record $1.25bn invested in 94 deals in 2007, up 83 per cent over the $682m invested in 2006. The most popular segment within this industry was consumer/business services, which accounted for 48 deals and $761m in 2007 – 61 per cent of the industry's investment total, the report found.
China's energy segment, which enjoyed record investment and deal flow in 2006, cooled in 2007. The area saw six deals completed and some $31m invested in 2007, significantly down from the $421m invested in 14 deals in 2006.
‘As has been the trend for several years, venture capitalists continue to diversify their investments in China,’ said Jessica Canning, global research director for Dow Jones VentureSource. ‘While prior years saw big gains in energy and web-related investment, 2007 saw much of that interest shift to the non-technology-focused business, consumer and retail area. This industry really picked up in the second half of the year with more than $831m invested in the third and fourth quarter.’
Seed and first-round deals make up the majority of deal flow in China with about 61 per cent. Second and later rounds now make up 50 per cent of total venture investment.
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