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Venture capital firms invested $677m in Mainland China in third quarter14/11/2007. Source: AltAssets. 
 Venture capital firms invested $677m across 59 deals in Mainland China during the third quarter of 2007. This is a five per cent increase over the $645m (invested in 76 deals) during the same period last year, according to the China Quarterly Venture Capital Report released by Ernst & Young and Dow Jones VentureOne.
With $432m invested - nearly 64 per cent of all capital invested in the third quarter, the business/consumer/retail industry category set a new quarterly record. The category's previous quarterly record of $242m was set in the second quarter of this year. Deals in this category were up to 28 from 17 in Q2 2007.
The bulk of investments in this category went to consumer/business services companies, which garnered a record $335m in 14 deals.
This brings the year-to-date investment total for the business/consumer/retail category to $710m, besting the annual record of $676m set in 2006.
'What we are seeing in Mainland China is a continuation of a global trend for venture capital investors to back service-focused deals, reflecting the fast growth in China's middle class, which increasingly consumes more services,' said Bob Partridge, Ernst & Young's China and Far East Venture Capital Advisory Group leader. 'Moreover, venture capitalists are attracted to this area by the relatively low capital requirements of services companies, their ability to acquire customers rapidly, and the strong exit valuations they are receiving in both IPOs and M&A transactions.'
Mainland China's healthcare industry accounted for four deals and $19m worth of venture capital. IT investments stood at $217m with 24 deals.
Copyright © 2007 AltAssets
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