Jul 16, 2020 04:13 PM

Charts of the Day: Internet Startup Funding Rebounds to $6.52 Billion in Second Quarter

Funding for Chinese internet startups strengthened in the second quarter, paralleling the country’s own nascent rebound from the Covid-19 pandemic, with online finance, transportation and grocery shopping all doing well, a new report showed.

Investors poured $6.5 billion into 321 internet deals during the first quarter, according to the report released this week by the China Academy of Information and Communications Technology. The investment figure represented a 37% rise from the previous quarter, though it was down 18% from the second quarter of last year.

The latest quarter’s deal volume was nearly triple the previous quarter’s, indicating the average deal size was smaller than that in the first quarter. That fact was also reflected in the data, which showed that 70% of all deals during the second quarter were early-stage investments compared with 53% that went to such investments during the first quarter.

The most active sectors during the quarter were enterprise services, with 58 deals, followed by e-commerce with 47 deals and online education with 35. E-commerce and online education were both in the spotlight during the quarter as the Covid-19 pandemic forced many homebound people to go online for both the shopping and education that they would normally do at brick-and-mortar locations.

Among the top 10 deals, internet finance took two places, led by the quarter’s largest funding of $1.29 billion by Lufax Holding Ltd. Transport-related plays took three of the top 10 spots, led by a $1 billion financing for DiDi Bike, the shared bike service owned by ride hailing giant Didi Chuxing. And online grocers took two of the top 10 spots, including a $300 million funding for Tencent-backed MissFresh.

The following charts summarize some of the highlights of China internet fundraising in the second quarter.




Contact reporter Yang Ge (

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