During the 2nd half of 2017, the new era’s characteristic of cultural consumption has shown itself. With Internet development has reached its threshold limitation, the consumption of offline activities and new types of culture has skyrocketed.
According to a research done by CMBN, 294 cultural and creative companies finished financing during the 2nd half of 2017, 2% lower than the 1st half of the year. Among which, there are 44 companies has been invested over 100 million or more. Compared to 1st half of 2017, the number lowered by 15.4%
As shown in the graph above, the number of companies who have finished Angle round raised noticeably, in fact by 22.7%, compared to 1st half of the year.
Cultural and creative companies with different varieties have grown exponentially during this new era of consumption. The layout of the investors in the cultural and creative industry is a lot more vertical and focused as well.
In the consideration of when these companies finished their financing, the general layout of investments and finances was fairly even during the 2nd half of 2017, with the number of August and September being slightly higher, 56 financing deals.
Following is the monthly review of Cultural and Creative companies’ financing situation in 2nd half of 2017, sorted by CMBN
Note: “Few million” in the sourced documents will be noted as “2 Million” in the chart. “Few tens of million” will be noted as “20 Million”. And “few hundreds million” will be noted as “100 Million”.
Focusing on the musically related pan-entertainment industry, there is a total of 42 companies finished financing. The number is 14.3% of the total financed companies in the 2nd half. It’s also 61.6% higher than the 1st half and 50% higher than the 2nd half of 2016.
As in financing rounds, Angle Round, Pre-A Round, and A Round have taken the greater percentage (52.3%) in the total financing rounds. In the aspect of financing amount, the amount, that musically related pan-entertainment companies financed, has reached to almost 1.8 Billion CNY, 210% higher than the same period of 2016 (580 Million CNY). There were 23 companies that financed between ten thousands and hundred thousand, which is the majority among the total financed companies.
Except for the companies that haven’t disclosed their financing amounts, there are 3 companies whose amounts has reached over 100 Million. Pearl River Piano financed 1.09 Billion CNY and Huoxin Digital Entertainment financed 100 Million in Pre-A Round. Also during November of 2017, Toutiao has spent whopping 1 Billion USD in the M&A of Musical.ly
In the analysis of a previous CMBN article The Financing Review of Chinese Music Industry in 2017, it mentioned that Indie Labels has become the most important part of the music industry. Indie labels have gained a lot more attention in 2017. Also with the rising potential in the fields of Artificial Intelligent, Context Consumption, and Short Video, companies who combined music with these fields has gained a deal of recognition from the investors.
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