Asia recorded $129 billion worth of deals for 2018, exceeding North America's $113 billion. Singapore chalked up 227 venture capital deals, with an aggregate deal value of $4.9 billion.
Asia recorded more Venture Capital (VC) deals last year than North America, according to a report by alternative assets data provider Preqin. By sector, Internet firms accounted for 29 percent of global VC deal value in 2018, with 3,297 deals worth US$80 billion, while the telecoms and healthcare sectors accounted for 20 percent and 16 percent of total deal value, respectively.
Globally, VC deals hit a record of $274 billion across 14,889 transactions in 2018, according to the 2019 Preqin Global Private Equity and Venture Capital Report. The average deal size was about $25 million.
Growth Dominated By China
Growth in the Asian VC landscape last year was dominated by China, with 4,281 venture capital deals completed in Greater China, adding up to $107 billion, or 83 percent of Asia's total deal value. Blockbuster deals involving Chinese unicorns such as Ant Financial (which raised $14 billion in June 2018) contributed.
The increased activity in Asia may also be due to more comprehensive data gathering by Preqin. For instance, fundraising and Asset Under Management (AUM) figures for Asia-focused funds reported by Preqin have increased significantly since end-2016.
More Capital To Flow
For 2019, both investors and fund managers are concerned about valuations and many expect a market correction, according to a survey among market players by Preqin.
However, the majority of private equity and VC fund managers are still planning to deploy more capital this year than in 2018. «Competitive conditions notwithstanding, it is likely that more capital will flow into venture capital in 2019,» the report concluded.
