Low value deals (investment <=US$10m) accounted for the majority of the venture capital (VC) investment volume in the Asia-Pacific (APAC) region while billion-dollar deals remained mostly non-existent during the fourth quarter (Q4) of 2020, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that the region saw the announcement of 948 deals (with disclosed deal value) during the quarter with low value deals dominating the VC investment landscape with 59.6% share of the overall investment volume. Deals valued more than US$100m and US$1bn accounted for just 6.2% and 0.2% share, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “With the uncertain market conditions and dampened investor sentiments, VC investors preferred staying away from high-value transactions.”
VC investment volume (deals with disclosed deal value) decreased by 2.1% from 338 deals in October to 331 in November and further shrank by 15.7% to 279 in December 2020.
In October 2020, low value deals as a percentage of the total deal volume stood at 64.8% while the share of deals valued more than US$100m stood at 4.7%. The month did not see the announcement of any deal valued more than US$1bn.
The share of low value deals as a percentage of the total deal volume stood at 58.9% in November while the share of deals valued more than US$100m and US$1bn stood at 5.4% and 0.3%, respectively.
Meanwhile in December, the share of low value deals accounted for 54.1% and the share of deals valued more than US$100m and US$1bn stood at 9% and 0.4%, respectively.