The year 2014 is heading ahead with aggressive investments and M&A activities in the tech space. Globally, during the first half only over USD 7.5 billion has been invested in 50 of the largest tech financings. Wherein Tiger Global emerged as the top investor in the deals, Sequoia Capital got noticed due to the number of large financings it participated in.
In U.S., Sequoia Capital had established U.S. Scout Seed Fund 2013 last February. Also, in August last year, it established the US venture fund XIV (USD 550 million) and the China Fund (USD 350 million).
The major investment deals include AirBnB (USD 500M, Series C), SunRun (USD 150M, Series E), Okta (USD 75M, Series E), Coupang (USD 100M, Series C) and many more.
It has seen 6 exits so far in 2014 with 1 IPO, 4 acquisitions, and 1 asset sale. This includes, MobileIron, an enterprise mobile device management company; Kontera Technologies, a content management platform and WhatsApp which was acquired by Facebook in February for USD 19 billion.
The graph below shows the scattered plot for Sequoia Capital’s exits over time for disclosed valuations:
Investment activities in Asia
If talked about Asia, then Sequoia Capital has been found to increase its interest there, over the last two years. Although, till date Israel was getting the most attention, now India is expected to take the major portion of the firm’s investment in Asia. Recently, it also introduced its USD 530 million India focus fund, to invest in sectors like health care, consumer and technology wherein Mobile Software & Services companies made up 33% of its’s Asian tech investments.
Below is the Geography heat map for Asia-The size of the box represents the number of deals and the darkness of the blue represents total funding.
As per a CB Insights study, in year 2013, Sequoia Capital’s tech investments in Asia saw 37% YoY rise. From 2012-2013 India and China made up a combined 74% of deals out of Asia versus 83% in 2010-2011, while Israel grew from 15% to 20% deal share in the same time period.
This includes deals such as USD 50 M Series D funding in China’s Chukong Technologies, USD 37 million Series D in India based Zomato and USD 57 million Series E in Just Dial.
Also, it was seen that the firm’s focus has been reduced in the eCommerce space. Year 2014, till date, has marked only the follow-on investments in companies such as fashionandyou, Jiuxian and Meituan.
Well, considering the way eCommerce companies like Flipkart are raising funds, and number of technology startups emerging everyday, where Sequoia Capital would lay its bet, would be worth watching.