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While financing in the Asian eCommerce market remains hot, exit valuations remain rather dreary.
Since 2010, $6.9B has been invested in Asian eCommerce companies across 383 deals from venture capital investors. Both deal volume and funding activitiy to the region are up 30% and 56% year-over-year respectively. Not surprisingly, India and China dominate the majority of this activity.
While the number of exits has continued to grow, the valuations of these exits have not been as high as investors might have hoped. The majority of exits have been relatively small as far as venture-level exits are concerned, at less than $50M. Nonetheless, there were 29 exits of Asian eCommerce companies in 2012 with 14 exits year-to-date in 2013. Despite 60% of Asia’s disclosed eCommerce exit valuations coming in at less than $50M, clearly investors believe the tide will turn as they continue to pour millions into the market.