The Garrison Group Remain Bullish About Asia as a Prominent and Growing VC Market Continues

Top Quote Recent reports suggest Asia is still doing well in VC funding, especially in late-stage rounds. End Quote
  • (1888PressRelease) October 17, 2015 - Brian Probert - Garrison Group's Managing Partner said "a recent report out from KPMG and CB Insights suggests that the Asian tiger is still alive and kicking despite all the recent unease. We are maintaining our push into the Asian market and are currently in discussion over later stage funding with two digital technology companies and expect to make an announcement in the near future".

    Market concerns about China, interest rates, and a tech bubble did nothing to abate the pace of investment into venture capital (VC)-backed companies in Q3 2015, according to Venture Pulse, the quarterly global report on VC trends published jointly by KPMG International and CB Insights. This quarter saw $37.6 billion invested across 1,799 deals marking another multi-year high for quarterly funding with the first nine months of 2015 already exceeding all of 2014.

    Among the major markets for venture capital investment, Asia saw the biggest gains in total funding. In 2013, Asia saw $6.5 billion invested into VC-backed companies. In just the first nine months of 2015, this number has climbed to $28.4 billion - representing a 337 percent increase with one quarter remaining in the year. Asia's biggest deals in Q3 centered on e-commerce, on-demand transportation companies, and fin-tech companies focused on payments.

    According to the Q3 2015 report, the first nine months of 2015 saw $98.4 billion invested into VC-backed companies, an 11 percent jump compared to all of 2014, which was a record year for VC-backed investment. The nine-month period also saw a 100 percent jump compared to all of 2013, which accounted for $49.3 billion invested.

    "It's been another banner quarter for VC investment around the globe," said Brian Hughes National Co-Lead Partner, KPMG Venture Capital Practice, and a partner for KPMG in the US. "From North America to Europe and Asia - the total amount invested continued to rise in all regions of the world. Large mega round deals also gained steam, rising to a median value of almost $35 million globally and an incredible $100 million in China."

    Anand Sanwal, CEO of CB Insights, commented: "Despite the chatter about an overheated market, the appetite for investment into fast-growing private startup companies remains insatiable. Q3 2015 marks another dot com level high for funding and this has become the new normal it seems. Investor FOMO (fear of missing out) continues to be a key driver of mega-financings and doesn't look to abate anytime soon."

    $100M+ financings shaping a new normal
    Large mega-round deals (those over $100 million) continued to gain steam, with 68 in Q3 and 176 in 2015 year-to-date. This year's mega-deals total $46.75 billion in funding so far, approximately 48 percent of the total funding received by VC-backed companies.

    North American companies, primarily out of Silicon Valley, along with Asian companies were the main recipients of these large financings. In Q3 2015, North America saw 37 mega-deals, while there were 25 in Asia. Comparatively, Europe only had 6 mega-rounds.

    North America leads, but all regions, especially Asia, display strength
    Regionally, North America continues to lead global venture capital activity. With $59.0 billion invested in the first nine months of the year, the region has already eclipsed all of 2014, which saw $58.3 billion of funding.

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