IDG sees 15 start-ups achieve unicorn status in 2016

IDG said in a statement posted on its official WeChat account that it saw three portfolio companies go public in 2016, while two others won approval to list. The IPOs were led by Meitu, a photo and community app provider that raised $629 million in Hong Kong, the largest internet offering on the exchange since 2004. Snack maker Zhou Hei Ya also went public in Hong Kong and Top Score Fashion listed on the A-share market.

There were also 14 M&A exits, including the sale of Hollywood film production studio Legendary Entertainment to Chinese conglomerate Dalian Wanda Group for $3.5 billion. IDG was one of several minority investors in the business.

More than 110 companies successfully completed funding rounds over the course of the year. Of these, 36 fell within the fields of artificial intelligence, consumer upgrades, and entertainment, which were identified by IDG as its three priority investment themes.

The firm describes its China strategy as "VC plus," in that it now pursues private equity and M&A in addition to early-stage transactions, across US dollar and renminbi-denominated funds. Working with Breyer Capital, IDG closed its latest flagship fund at $1 billion in July 2016; as well as venture and growth-stage companies, it targets international companies that are looking to enter the Chinese market.

In June of last year, the firm teamed up with China Everbright to launch the Everbright-IDG Industrial Fund, which looks at M&A and restructuring opportunities in areas ranging from financial technology to high-end manufacturing. The vehicle reached a first close of RMB10 billion ($1.45 billion) and deployed the capital within five months. A final close of RMB25-30 billion is expected in the first half of 2017.

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• Topics
• Greater China
• Technology
• Early-stage
• IPO
• Expansion
• Trade sale
• China
• IDG Capital Partners
• TMT
• Venture