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Growth in APAC web whizzes bucks global trend

Paul Smith (via AFR) | April 18, 2013
Heightened interest from US and Europe-based investors has seen a surge in big money investment in tech companies in the Asia Pacific region.

Growth in APAC web whizzes bucks global trend

Internet Dealbook’s Benjamin Chong, a partner at Right Click Capital, says Asia Pacific deal prices were being driven up by greater interest in the region from US and European based investors....pictured with Lisa Cumes of the Founder Institute. Photo: Michele Mossop

Heightened interest from US and Europe-based investors has seen a surge in big money investment in tech and web companies in the Asia Pacific region, new numbers from market tracking firm internet Dealbook have shown.

The firm, which is the publishing arm of investment firm Right Click Capital, tracks deals globally and found that in the first quarter of calendar year 2013 total deal value and average deal values are down significantly on the same time last year. However the Asia Pacific region has bucked the global trends, with a world leading average deal size of $US22.8 million, up 34 per cent on the $17 million average for 2012.

These deals include investments in tech startups, as well as buyout. Asia Pacific is also the only global region to experience growth in the value of deals occurring in the first quarter of 2013 over Q1 2012, with deal value up 51 per cent. The Asia Pacific region also leads the way in the average deal size for investments (rather than acquisitions), average investment is $US24.1 million. The US meanwhile remained the king of big money acquisitions, with the average buyout coming in at $US166.4 million there.

 

GLOBALLY DEALS DOWN

Globally the quarterly numbers showed $US9.6 billion of deals tracked in the first quarter, this was down 55 per cent on $21.5 billion in the first quarter of 2012. All regions except North America had experienced a reduction in the total number of deals, and the average deal value for acquisitions had dropped significantly, by 62.7 per cent, to $US124.5 million from $US333.6 million in 2012.

With much of the world's startup focus remaining on Silicon Valley, the US still accounted for the vast majority of the 910 deals tracked globally in the first quarter. It recorded $US7.2 billion, or 75 per cent, of the $US9.6 billion global total..

Media, e-commerce and software and services related companies were the only sectors to record an increased number of deals.

Intent Dealbook's Benjamin Chong, a partner at Right Click Capital, said Asia Pacific deal prices were being driven up by greater interest in the region from US and European based investors. He said these investors saw an opportunity to tap into high quality technology companies away from the saturated US market.

 

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