Venture capital spending hits US$558m

Venture capital investment in China rose 136% year-on-year to US$558.1 million in the second quarter, the largest single quarter investment in more than two years, a survey found. The 54 deals completed also represented the largest number of agreements in a single quarter since Ernst & Young and Dow Jones Financial Information Services started running the survey in 2001. "The venture capital ecosystem in China is getting mature, although it is still very young," said Gil Forber, global director of Ernst & Young's venture capital advisory group. "Many of them [entrepreneurs and investors] have worked in a few start-ups before." Investments are also becoming more diversified. While IT accounted for 57% of total investments in the quarter, there was greater interest in medical devices, healthcare services and alternative energy. The largest deal was a US$99 million investment in solar cell developer CEEG Nanjing PV-tech.