Han Kun Law Offices ("Han Kun") officially released the "Han Kun 2022 VC/PE Data Analysis" (English Version) (the "Report") in September 2023. The online version of the Report has been successfully launched on the firm’s website:
https://www.hankunlaw.com/upload/portal/20230918/165154259edd99d942a409faa5900ce1.pdf
In the Report, Han Kun assesses the data collected from around 500 VC/PE transactions it has assisted clients in completing in 2022 and then analyzes the investment structures and key legal provisions prevalent in such transactions. Han Kun also provides a horizontal comparison of the data compiled from nearly 3,500 VC/PE transactions it has advised on over the past six years, showing the evolution of the investment structures and key legal provisions over the time span.
Part I
The first part of the Report summarizes the features and trends of the VC/PE transactions in 2022:
l The number of transactions and total investment declined in 2022, while early-stage investments bucked the trend.
l Onshore transactions continued their upward trend.
l Beijing, Shanghai, Shenzhen, Hangzhou and Suzhou were the most favored domiciles for investee companies to base their principal operations.
l The top five market sectors for VC/PE investments were biomedical, semiconductor, smart hardware, e-commerce and food catering.
l Transactions by financial investors trended upward.
Part II
The second part of the Report focuses on a number of key legal provisions in VC/PE transactions and summarizes their trends in recent years. These provisions include liquidation preference, repurchase right, preemptive right, right of first refusal and co-sale right, drag-along right, anti-dilution right, dividend preference, restrictions on founders, share transfer by founders, control right (protective provisions and board composition), information right and inspection right, employee equity incentive plans, survival period for representations and warranties, indemnification and founders’ personal liability, restrictions on investors, most-favored nation clause, valuation adjustment mechanism, and dispute resolution.
Han Kun has published VC/PE data analysis reports for seven consecutive years. The Report embodies Han Kun's industry experience and observations in the past years, as well as rigorous and professional data analysis. It is our hope that the Report will serve as a valuable reference for the further development of the VC/PE market.
About Us
Han Kun is a leading full-service law firm in China. Over the years, Han Kun has been widely recognized as a leader in complex cross-border and domestic transactions and compliance matters. Our main practice areas include private equity, mergers and acquisitions, international and domestic capital markets, investment funds, asset management, compliance, banking and finance, aviation finance, foreign direct investment, antitrust/competition, data protection, private client/wealth management, intellectual property, bankruptcy and restructuring and dispute resolution.
For further details, please visit our official website at: https://www.hankunlaw.com/en/
Our official WeChat account: 汉坤律师事务所 (WeChat ID: hankunlaw)