In the second quarter of 2015 there was a significant increase in venture capital investments in the Asian region. The total was over half of America’s level ($19.2bn), coming in at $10.5bn. It has been suggested that this large number was due in part to a slew of deals that have been aimed at developing digital champions in parts of Asia.
As well, according to a study put out by CB Insights for KPMG, this boost is said to have been “the most prominent feature of a global surge in start-up investing this year.”
The flipside of this surge is how it makes Europe look. Even though that region has been encountering a slight development, it’s not nearly on the same par as what has been transpiring in Asia. And this of course has an impact on the global economy.
As well, while looking at Asia as a whole might be extremely positive, in July, China’s factory industry “appeared to be contracting at the fastest pace in 15 months.” Indeed, there was a plummet of Asian stocks possibly as a result of pessimistic data from China at the end of last month. The Shanghai composite index went down to 8.47%, marking its worst performance in three weeks.
So despite the increase in Asian VC investments, the region is not completely out of the woods yet.