Taking thousands of early-stage innovative companies that are in Series A round as a sample, EqualOcean selects the Global & China's TOP100 rising stars based on multiple criteria, and discusses the investment trends of early-stage venture capital in multiple regions and industries.
On December 9-12, EqualOcean is holding the World Innovators Meet (WIM) 2020. This year, the event's main topic is 'Technology and Innovation Connect the World.' WIM2020 gathers innovators from Asia, Africa, Europe and the Americas to share their knowledge and key achievements, promoting the concept of 'Tech for Equal.'
In the context of the economic recession, companies that still receive financing in 2020 have greater vitality
Since 2008, the share of economies in recession has maintained at around 20, but this number has soared to 93 in 2020 due to the epidemic's devastation. From another perspective, the impact of the black swan ‘gave birth’ to new entrepreneurial opportunities. Those startups that can still get financing in 2020 and even those founded in 2020 are more likely to represent the future.
Investment trends of companies in Series A round and an overview of 100 Chinese companies
The Sino-US trade friction that began in 2018 and the sudden pandemic in 2020 have gradually reduced the capital market's enthusiasm. The amount of investment in the A round has dropped from CNY 3.21 trillion in 2018 to CNY 1.10 trillion in 2020, a 66% decrease. Correspondingly, the number of investments has plummeted from 298 in 2018 to 93 in 2020, suggesting that venture capital is more cautious in the funds' returns.
Among the 100 companies we selected, healthcare, enterprise services, manufacturing, hardware, and e-commerce ranked top five in terms of industries. Industries that require outdoor activities, such as sports and agriculture, which are more severely affected by the epidemic, are least favored by investors.
2020 gives birth to more healthcare companies. Among the 100 companies, 17% of them were established in 2020, of which seven are from the healthcare field, accounting for 40% and ranking first. Two are from the manufacturing industry, accounting for 12%, ranking second.
Investment trends of companies in Series A round and an overview of 100 global companies
The current international economic situation is facing severe challenges, and prospects are full of uncertainties. Investment and trade protectionism, geopolitical tensions, and the troubled multilateral trading system have severely inhibited international investment recovery prospects in the near and medium-term.
After the amount and numbers of investment around the A round reaching its peak in 2Q 2019, under the global epidemic's influence, the global economic contraction in 2020 has led to a continued downturn in the capital market. The number of investments dropped to 284 in 3Q 2020, the same as the 4Q 2016. North America, Asia and Europe ranked top three in terms of investment activity.
Rising stars are distributed in 12 industries. Among them, the number of companies in the healthcare, enterprise services, and financial sectors ranked in the top three, accounting for 53%, 18% and 11%, respectively. The number of startups in the healthcare sector has been ranked first for five consecutive years. Among them, the United States accounted for 66%, which tripled from 22 in 2019.
China Rising Tech Stars TOP100
Global Rising Tech Stars TOP100
Click the links below for more details about the report
Rising Tech Stars 2020: Global & China's 100 (English version)
Rising Tech Stars 2020: Global & China's 100 (Chinese version)
About WIM
Hosted by EqualOcean, the World Innovators Meet (WIM) (click to watch the online event on December 9-11, 2020) is a global event for innovators. It provides limitless opportunities to learn from and connect with the most sought-after technology pioneers.
About WIA
The World Innovation Awards (WIA) are announced at WIM to recognize game-changers across various industries and geographies. Selected by a committee of distinguished experts, entrepreneurs and investors, WIA are designed to acknowledge technology disruptors striving to make a positive impact on a global scale.
See this year's WIA lists and download the research reports in English and Chinese on EqualOcean and 亿欧智库 respectively.