Over the past several months, the extremely hot local VC/PE market in China has returned to a rational level due to the combined effects of the widening global subprime mortgage crisis, the volatile economic situation, the continually roaring cost of raw material, resource and labor force.
According to Zero2IPO Research Center statistics, VC firms collectively raised US$492 million in the third quarter of 2008. The figure represents that the capital available for investing in Mainland China registered a 63% decrease in comparison to the same period last year. Additionally, VC firms injected a combined US$788M into Mainland China-based enterprises. In comparison with Q3’07, the disclosed investment amount increased 10%. Also based on Zero2IPO Research Center statistics, PE funds targeting Asia (including China) raised US$18.75B in the third quarter of 2008 (which is an adjustment period for the time being), 94% up year on year, but a total of US$2.65B PE investment during Q3’08 exhibited a 24% year-on-year decrease.
China’s VC/PE market did not catch a cold all of a sudden. Nevertheless, a large number of VC/PE firms whose capitals mainly originate from overseas market have slowed down the pace of investment in China. Obviously, they are more inclined to becoming cautious in an unclear context. Almost everyone has been worried about the foreign and domestic capital markets. Against this backdrop, Zero2IPO Group grandly held the second China Venture Capital & Private Equity Forum, London on October 7, 2008, providing a good opportunity of exchanging ideas and experiences and seeking for cooperation for about 200 top investors, entrepreneurs, LPs and professionals at home and abroad.
"Over the past nine years, we have held many Venture Capital and Private Equity forums in China. I am honored to launch the forum in Europe for the second time,” Gavin Ni, Founder, CEO & President of Zero2IPO Group said. “The last year’s forum in London was a great success, which attained great support from various professional institutions and businesses. I believe this year’s forum will be more splendid and you will give more surprise.”
Zero2IPO released the latest data of China Venture Capital and Private Equity market on the opening ceremony. The impact of China’s VC firms and that of China’s PE houses made by the financial turmoil shall be gauged, respectively. The plummeting global stock market has little direct effect on the performance of VC and PE in a short term, but VC/PE firms will readjust their profit estimates to a more rational level in the long term. VC firms mainly focusing on investments in high-tech companies and start-ups, together with VC firms with affluent individuals and large corporate companies as their LPs, will have relatively less impact. Nevertheless, PE firms whose capital sources are mainly dependent on large-size institutions, as well as hedge funds that allocate too large a portion of investments in real estate and securities, will have a pronounced impact. If VC/PE firms conduct investment in this period, they will attain investment opportunities with their investee company rationally evaluated. Meanwhile, with the shrinking possibility of cashing out in the near future, they need to work closely with the entrepreneurial companies. If united, they are able to wade through the bearish market together. After both parties survive the financial crisis and embrace a strong recovery, they will gain momentum after the economy is strong and attain growth in the next phase with brighter perspective. VC/PE firms with core competitiveness will get benefited from their industry expertise strength and added values, which will be more valuable at the current stage.
Keynote speakers include Mr. Colin Milton, Head of International Business Development Primary Markets, London Stock Exchange, Mr. KAZUNORI OZAKI, Chairman & CEO of Nikko antfactory K.K, Mr. Martin Bloom, UK-Chairman of The UK-China Venture Capital Joint Working Group, Ms. Sally Collier, Partner of Pantheon Ventures, Dr. Alexandra Goll, Partner of TVM Capital, and Mr. Zhou Liu, Chairman & President of Shenzhen Fortune Venture Capital Co., Ltd. These professionals made a wonderful speech at the forum.
In the sponsors’ list, you will find such international famous institutions as Nikko antfactory K.K, London Stock Exchange, Cyzone, Hong Kong Venture Capital and Private Equity Assocaiton, AltAssets, BrainsToVentures AG, Orbiso Global, City of London, AddVenture, China -Britain Business Council, Library House and CXO Europe.
China Venture Capital Forum (CVCF) has stepped into its ninth year since it was first launched in 2001. Today, it has developed itself as a premier brand name in the China venture capital industry. CVCF strives to be your preferred partner in the road ahead.
