China Trade Information

In the third quarter of this year, venture capital investments amounted to US$677 million, with a total of 59 deals,  while risk investment attracted by service-oriented industries created a record, according to a joint report published by Ernst and Young and Dow Jones VentureOne.

The report showed that in the third quarter of this year, a total of 28 VCs deals worthing US$432 million were derived from the business, consumer, retail trade and other service-oriented industries. The volume of investment took up more than 60% of the entire venture investment in this quarter, breaking the record of US$242 million made by these industries in the previous quarter.

The report also revealed that the VCs related to the IT industry posted a decrease of 23% over the same period last year, with a total investment of US$217 million.

Managing Director of Transaction Advisory Services and the VC Advisory Group of Ernst and Young, Robert Partridge, said that more investors worldwide are investing in services-oriented companies.  Services companies offer relatively low capital threshold, the ability to attract customers quickly, as well as high risk premiums obtained in IPO or mergers and acquisitions, thereby making it appealing to investors.

Tags: China Investment, IPO

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