How will institutions reduce the number of investment events in January to support Wuhan’s unicorns?
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The number of investment and financing in January dropped by more than 60%!
Which epidemic impacts venture capital financing?
How will the organization support the “unicorn” in Wuhan?
Source: Wealth management of Fuji Niubi. At 19:54 on the last February 2 of the reporter, 14489 cases of new coronavirus pneumonia were confirmed and 304 died.
In January of this year, the outbreak of new coronavirus pneumonia in Wuhan city spread across the country, which has caused huge impacts on various industries, including the venture capital industry.
According to Zero2IPO private equity data, there were 188 domestic investment and financing incidents in January this year, citing the 480 cliff-like declines of 60 in January 2019.
Among them, there were 5 investment incidents in Wuhan where the company was registered, compared with 11 in the same period last year.
At the same time, according to the “2018 China Unicorn Enterprise Development Report” (hereinafter referred to as the “Report”) issued by the Great Wall Enterprise Strategy Institute, as of the end of 2018, the number of “unicorn enterprises” in the country reached 202, of which 5 were in WuhanOn the list, all are located in Optics Valley.
Are these unicorn companies affected by the epidemic?
What measures have the investment institutions behind to support startups?
The Daily Economic News made a visit in this regard.
According to data from Zero2IPO Private Equity, a total of 188 investment incidents occurred in January this year.
Among them, the industry with the most concentrated investment incidents was “IT services” with a total of 20 occurrences; followed by the general health sector with a total of 18 financings; meanwhile, there were 12 and 8 investments in other IT services and other network services.
And in the investment event in January, the largest amount was a round of fixed increase completed by China Merchants Shipping on January 8, with a total of 36 raised funds.
1,000,000; On January 9th, the $ 1 billion D-round financing completed by chronic disease digital health company “Zhiyun Health” (formerly Pocket Sugar Doctor) also attracted the attention of the market. In addition, digital operation services for new energy logistics vehiclesThe multi-million-dollar C1 round of financing completed by the company “ground railway”, and the pre-A round of ten-million-dollar financing obtained by the crypto asset service provider Keystore are also considerable in the industry.
Let’s take a look at the round of financing in January: From this statistical point of view, the early angel round, round A and round B had the most investment events.
Let’s take a look at the data of the same period last year-a total of 480 investment incidents occurred in January 2019.
Among them, the most concentrated industry is big health care (including biopharmaceuticals, bioengineering), a total of 60 cases occurred; followed by IT services, a total of 50 financing; network services, software and e-commerce three financing track eventsThere are 26 times, 22 times and 20 times respectively, which are also relatively long. At the same time, the frequency of investment and financing incidents in other machinery manufacturing, hardware, other hardware, environmental protection and other fields is also relatively high, 17 times, 16 times, 14 times and11 times.
Of the investment events in January 2019, the most noticeable of course is the two fixed increases by COSCO SHIPPING and Huaxia Bank, because the scale is relatively large; in January 2019, “Just on Time” announced the official completionA round of financing and settlement reached 2.4 billion yuan, setting the largest single financing record in the history of B2B supply chain logistics. In addition, there were several investment and financing of hundreds of millions of dollars in the month, such as the agricultural product trading B2B platform “one acre”Tian “completed a series of millions of RMB C round of financing, and” Jumeng Logistics “received more than one million Pre-A + rounds of financing, etc., both in terms of investment volume and scale, more than one year in January.
Looking back at the proportion of investment rounds in January 2019, it can be found that the proportion of rounds B and further rounds exceeds 60%, and the trend of early investment is still very obvious.
Some investors said in an interview with the Wealth Management Company (ID: buerniu5188) that the “black swan incident” such as the epidemic will indeed delay the progress of investment decisions and bring impact on the overall investment market throughout the year.
Objectively speaking, a large number of financing events in January were finalized or even completed before the outbreak, plus the Spring Festival holiday, so the subsequent impact may continue to manifest internally.
Let’s take a look at the situation in Wuhan separately.
The following are the investment and financing events in Wuhan in January: to compare with the investment events in Wuhan in January 2019: Looking at the changes in the past two years, in January 2019, except for Beijing, Shanghai, and Shenzhen, these venture capitals are popular.In terms of regions, Wuhan’s investment events and scale are ranked higher in the country.
By this year, of the five investment cases, Optics Valley talent entrepreneurship accounted for two, and the amount of financing was far less than last year.
Are the “北京夜网unicorns” in Wuhan all right?
According to the “Report”, unicorn enterprises in Wuhan include Douyu Live, Anhan Optoelectronics, Curly Skin Network, Zebra Run and Medicine Help (small medicine).
Among them, Douyu landed on Nasdaq in July 2019; Anhan Optoelectronics’ application board for science and technology board was revoked in March 2019, but its IPO review was terminated in November of that year, when the company posted on the official websiteThe statement stated that it is not expected to completely resolve the litigation within the time limit for review, and “actively withdraw the application for the initial public offering of shares and listing on the science and technology board”.
According to the private placement data and public information, Niu Mei compiled a list of several generally recognized unicorn companies in Wuhan: Niu Mei tried to contact the 杭州夜网论坛 companies in the form and found that some of the public telephone numbers were empty numbers, and some of the contact details were suspended.Use, there are still some companies or affected by the epidemic have not resumed work.
The final release, we have not received a response from the relevant company.
In fact, the data can be grinded. The financing time of the merged company has been a long time ago. Zebra Run, which was estimated to have exceeded US $ 5 billion, was still in the “operating storm” in early 2019.
According to the “2019 Annual Optics Valley Gazelle Enterprise Development Report” prepared by Wuhan East Lake High-tech Zone, Optics Valley identified 414 gazelle enterprises in 2019, with a total revenue of 193.
4 trillion, an average of 49 in the past two years.
At that time, a person in charge introduced that the merger of Optics Valley Gazelle companies has gradually grown out of six unicorn companies such as Douyu Live, Medicine Help, and nine listed companies such as Polytechnic and Shengtian Network.
Then, from another perspective, from the perspective of investment institutions, what kind of support will the institutions provide to the investees in the face of the upcoming epidemic? Sun Yaying, a partner of Meiya Indus Fund, told Niu Mei that the main reason is that post-investment management measures are closer and interactions are closer, helping the investees to solve some problems they encounter in their operations.
Founding partner of Shengshi Investment, Chairman Jiang Mingming also stated in a public explanation of today’s document that it will help the invested company manage the cash flow, pay attention to the accounts receivable and payable of the company in a timely manner, whether it is due to employee rework and upstream and downstream supply.The chain and other issues can normally operate production within the period, whether there is a risk of contract breach, etc., and open source and reduce expenditure.
However, related to specific assistance measures and policies, a series of venture capital institutions interviewed by Niu Mei said that they are still discussing and researching, “taking into account the opinions and guidance of regulatory agencies, and it is estimated that they will not come out so soon.”