Venture capital deals in India saw an increase of 16% during July-September quarter, with 111 financings compared to 96 in the April-June quarter, according to Preqin. The two largest venture capital financing rounds in Q3 2014 were both in Asia - the $1 billion investment in India-based Flipkart and the NZD 615 million PIPE deal in China-based Beingmate Group, it said.
Global venture capital investment activity showed a total of $59 billion has been invested in 5,272 deals globally in 2014 so far, compared to $37 billion invested in 5,940 deals over the same period in 2013, as per Preqin. While activity for the third quarter is below that of Q2 2014, the amount of capital invested is 45% higher than during the same quarter in 2013.
1,664 financings took place in Q3 2014 valued at an aggregate $19 billion. This represents an 8% drop in the number of deals compared to the previous quarter, with a 16% decrease in aggregate value. The number of deals in North America is 6% lower in Q3 2014 compared to Q2 2014, with a 26% fall in aggregate value.
More deals took place in the telecoms sector (266) than the healthcare sector (233) in Q3 2014, the first time this has happened in any quarter. The average deal value for Series D stage and later deals in Q1-Q3 2014, at $59 million, is 75% larger than the average in 2013 of $34 million.
On the other hand, the Alibaba Group's $25 billion IPO is the largest venture capital exit in Q3 2014, followed by the $1.7 billion trade sale of Seragon Pharmaceuticals Inc.
Christopher Elvin, Head of Private Equity Products, Preqin said, "Entrepreneurial companies worldwide have received a welcoming boost in 2014, with almost $60 billion invested in young companies throughout the first three quarters of the year - 60% up on the amount invested during the same period last year. Asia in particular has seen a notable surge in activity, with investment levels across India and Greater China increasing significantly over the course of the year. The two largest venture capital deals of the quarter also took place in India and China. While the pace of new investments has slowed in 2014 compared to 2013, all stages of investment, with the exception of growth capital/expansion, have larger average deal sizes in 2014 so far than in 2013."
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