AVCJ

Weekly digest - February 22 2023

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22 February 2023
INDIA EXITS: SUSTAINABLE TREND?
COVER STORY
Deglobalisation is broadening the concept of cyber risk from preventing attacks to navigating a minefield of data regulations. GPs are under pressure.
PROFILE
JAMES MI OF LIGHTSPEED CHINA PARTNERS
JAMES MI OF LIGHTSPEED CHINA PARTNERSRejecting a life-changing job offer from Google and overseeing a failed start-up are two of James Mi’s mistakes. He learned from them and then made a success of Lightspeed China Partners.
DEAL FOCUS
VCs BACK LOAM BIO'S AGRI-CLIMATE OFFERING
VCs BACK LOAM BIO'S AGRI-CLIMATE OFFERINGSoil carbon sequestration specialist Loam Bio’s Series B is the largest ever seen in Australian agricultural technology. The company’s backers expect it to go big and go global.
DEAL FOCUS
AFFINE PLANS FOR AN OFFICE BEYOND OFFICE
AFFINE PLANS FOR AN OFFICE BEYOND OFFICEAdamantem Capital bought Retail Zoo from Bain Capital with a view to continuing the rollout in Australia and overseas while potentially picking up more food and beverage brands.
DEAL FOCUS
SMALL IS BEAUTIFUL AT QUANTUM BRILLIANCE
SMALL IS BEAUTIFUL AT QUANTUM BRILLIANCEAustralia-based Quantum Brilliance has raised USD 18m in pre-Series A funding on the back of technical breakthrough that delivers quantum computing without large-scale cooling infrastructure.
AVCJ AWARDS 2022
FIRM OF THE YEAR - MID CAP: PACIFIC EQUITY PARTNERS
FIRM OF THE YEAR - MID CAP: PACIFIC EQUITY PARTNERSReflecting on a 12-month period characterised by a string of bumper exits, Australia’s Pacific Equity Partners sees a clear connection between performance and well-established team and culture.
AVCJ AWARDS 2022
FUNDRAISING OF THE YEAR - VENTURE CAPITAL: QIMING
FUNDRAISING OF THE YEAR - VENTURE CAPITAL: QIMINGQiming Venture Partners defied tough conditions to close its eighth US dollar-denominated fund on USD 2.5bn. Managing Partner Nisa Leung looks back on the process and examines the prospects for healthcare.
AVCJ AWARDS 2022
OPERATIONAL VALUE ADD: OWNDAYS
OPERATIONAL VALUE ADD: OWNDAYSL Catterton’s investment in Japanese eyewear brand Owndays demonstrated a hands-on approach to sharing commercial networks, expertise in omnichannel scaling, and operating capabilities.
By the Numbers
AVCJ RESEARCH
THE RENMINBI QUESTION
DCM raised renminbi-denominated funds at the behest of its target entrepreneurs. Complaining that changing US dollars into local currency was too difficult, they petitioned the venture capital firm to give them local currency instead. DCM acquiesced but the initiative lost traction when China relaxed its conversion policies.
Capital raised for renminbi funds reached USD 34.8bn in 2022, up slightly on 2021, but still a pale imitation of the environment a few years ago. Yet the lack of a resurgence in fundraising activity appears to run contrary to China’s prevailing dynamics.
Start-ups in sensitive industries like semiconductors and deep technology are said to be wary of taking US dollars in case they find themselves caught in a bind later if – for example – overseas investors are forced to exit their positions. Why aren’t more renminbi funds being raised in response? Maybe they will, maybe they won’t.
Separately, it might be that GPs with US dollar funds are wary of the renminbi space – high-quality LPs are relatively few – and they recognise it is not a prerequisite. First, foreign and local investors can co-exist in companies that adopt joint venture structures. Second, there is the Qualified Foreign Limited Partnership (QFLP) regime.
Last week, Primavera Capital Group secured a QFLP quota for its debut VC fund. Some of the capital can be converted into renminbi at the fund level and invested locally. Going onshore doesn’t make sensitive sectors more accessible – regulators focus on the ultimate beneficial owners – but it does make life easier in other respects.
CHART
All of the trends featured here were sourced from AVCJ's proprietary database, AVCJ Research, featuring comprehensive information on private equity deals, fundraises and exits.
The rest of the week
FUNDS
DEALS
PEOPLE MOVES
For your calendar
UPCOMING EVENTS

 

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