Han Kun Law Offices ("Han Kun") today officially released the "Han Kun 2023 VC/PE Data Analysis" (English Version) (the "Report"). The online version of the Report has been successfully launched on the firm’s website:

https://www.hankunlaw.com

In the Report, Han Kun summarizes the data from nearly 400 VC/PE transactions it assisted clients in closing in 2023 and analyzes the investment structures and a number of key legal provisions commonly used in such transactions. At the same time, Han Kun compares the data collected from nearly 3,900 VC/PE transactions it worked on in the previous seven years, showing the characteristics of the VC/PE transactions in 2023 and the trends of the investment structures and key legal provisions over the time span.

Part I

Part I of the Report is an executive summary which highlights the trends and characteristics of the VC/PE transactions in 2023:

  • l Both the number of transactions and the deal value declined while early-stage investments defied the slide.
  • Onshore transactions continued their upward trend while VIE structure lost luster for offshore transactions.
  • Shanghai, Beijing, Shenzhen, Hangzhou and Suzhou were the most popular cities in China for investee companies to base their principal operations.
  • Biomedical, new materials, semiconductor, smart hardware, automobiles and transportation were the top draws for VC/PE investments.
  • Transactions originated by financial investors trended upward.
  • Term sheet transactions reached a new low.

Part II

The second part of the Report focuses on a number of key legal provisions in VC/PE projects and summarizes the trends in recent years. These terms include: pre-emptive right, right of first refusal and co-sale right, repurchase right, anti-dilution right, drag-along right, dividend preference, control right, employee equity incentive plans, liquidation preference, restrictions on founders, share transfer by founders, information right and inspection right, survival period of representations and warranties, indemnification and founders’ personal liability, restrictions on investors, most-favored nation clause, valuation adjustment mechanism and dispute resolution.

Han Kun has been publishing VC/PE data analysis reports for eight consecutive years. Based on its own industry experience and observations, Han Kun hopes that the 2023 VC/PE Data Analysis will provide a valuable reference for the 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. We have over 800 professionals located in Beijing, Shanghai, Shenzhen, Hong Kong, Haikou, Wuhan, Singapore and New York City. All our lawyers are graduates of top universities and have extensive experience in complex cross-border transactions and dispute resolution as counsel to both Chinese and foreign clients. For further details, please visit our official website at: https://www.hankunlaw.com/en/

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