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Startups in Asia raised over US$93 billion last year, up from about US$65 billion the previous year, thanks to a number of mega deals in the region. Venture capital (VC) invested in Australia reached a record $900 million.
In the fourth quarter alone, Asia saw four deals above the $1 billion mark — led by China-based ByteDance’s $3 billion raise. But the latter deal pales in comparison to the best deals of 2018 — China’s Ant Financial raised $14 billion in the second quarter, followed by a $12.8 billion funding round completed by U.S. e-cigarette maker Juul.
Globally, venture capitalists poured more than $255 billion into startups and other early-stage companies, a record high, despite a third straight annual decline in deal volumes. Key investment areas included artificial intelligence, autonomous vehicles, horse riding, healthcare, fintech and biotech. In a market dominated by private equity firms, enterprise business reached an all-time high, with enterprises accounting for more than 20% of all deals. In Asia, this percentage was even 30%.
Meanwhile, in Australia, venture capital investment reached $899 million in 2018, up from $656 million the previous year.. “2018 was the biggest year ever for venture capital investment in Australian startups. For the first time, we are witnessing a steady flow of large funding rounds of over USD 10 million aimed at helping locally-based businesses gain a foothold in global markets. In Australia, the diversity of funded startups is a testament to the scale of the economy and opportunity,” explained Amanda Price, Director of High Growth Ventures at KPMG. in Australia.
Major financing deals in the country included an $81 million Series B round from Nura, a $21 million Series A round from Nura. USD and Gilmour Space Technologies in a USD 13.9 million Series B. The third quarter was Australia’s best quarter with 41 deals valued at USD 325 million. USD, compared to, for example, 15 closed stores. in the last quarter of the year.
Commenting on the outlook for 2019, Price said: “We expect a high-cost climate and volatile market environment that will lead to heightened investor caution, although record capital remains to be deployed.”
From a global perspective, John Lavender, global chairman of KPMG Enterprise, noted that it is safe to assume that 2019 may not improve on the results achieved in 2018. safe bets and later-stage companies. This is likely to result in the average deal size continuing to increase while deal volume either remains stable or continues to decline.”
Related: In 2018, New Zealand was named the most startup-friendly country in the world.
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