Decline for financing China culture and media industry in H1 2012 (ChinaVenture)

25 August 2012 11 h 01 min Comments Off

The culture and media industry saw its financing decline in the first half of the year, according to a report released on Aug 23 by ChinaVenture, a research and consulting firm focused on venture capital investment.

According to Data from CVSource, venture capital (VC) and private equity (PE) companies raised 78 million dollars for 21 financing projects in the first six months this year. The cases number saw a decline of 19% year-on-year, while investment volume down 68% year-on-year.

In more details, film and television entertainment, advertisement and animation industry are the most welcomed by investors, attracting accordingly 40 million, 22.72 million and 15.2 million dollars in the first half year. These industries got almost all of the investment in the culture and media industry in the first half.

Among the top 3 popular industries, film and television entertainment is no doubt the most popular. 10 out of the total 21 financing cases took place in this sector.

According to ChinaVenture, “as the general trend of China film industry is generally oversupply, while demand for excellent films exceeds supply, high risks still exist for VC and PE companies due to the low degree of specialization”.

In comparison, animation industry may be the most promising. According to the report, “famous foreign animation companies provide mature business models. Added with the increasing consumption in culture sector and great investment volume raised recently, animation industry in China will meet with a period of high speed development”.

According to CVS, the decrease of financing activities in Mainland China is not only for the culture and media industry. The number of completed merger and acquisition deals decreased by 50 percent year-on-year in the first quarter of 2012 amid the global economic slowdown,

Sources: ChinaVenture, morningwhistle.com, China Daily (24/08/2012)

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