Australia ranks third in global investments and acquisitions
According to the latest report by Internet Deal Book, Australia (117) had the third largest number of internet and technology deals of any country in 2013 – surpassed by the US (2639) and UK (209). Over USD$200 billion were spent on investments and acquisitions across the globe last year, with Australia sitting at $1.06 billion (Average Deal Value: $16 million).
Startups in Australia are realising that a good idea alone does not guarantee success. They may have pulled 80-hour weeks for over a year drawing no wage, but eventually the stark reality hits home. Part of this is why we are seeing an exodus of startups from Australia.
The numbers in the Internet Deal Book report support the argument that Australia has a risk-adverse investment culture. Although we sit in third position in regards to the number of internet and technology deals worldwide, the total dollar value of the deals are outranked by Finland ($1.76 billion), Israel ($1.88 billion), UK ($2.13 billion), Canada ($2.56 billion), China ($5.74 billion), and the US ($71.29 billion).
However, the report also indicates that the total investment value in the Asia/Pacific region rose 80 percent from $3.14 billion in 2012 to $5.64 billion in 2013. While it wouldn’t be too far-fetched to attribute this rise to China’s booming economy, Australia’s deal value has also doubled. In 2012, there was $503.73 million worth of disclosed deal value from 85 total deals – half of $1.06 billion in 2013.
Other revelations in the report indicate that a majority of investments and acquisitions are happening in the Hardware & Infrastructure sector, doubling from $26.64 billion in 2012 to $54.28 billion in 2013. This is followed by Software & Services ($17.78 billion), Transactions ($6.02 billion) and Media ($5.99 billion).
The least invested and acquired industries – by dollar value – is Mobile & Apps ($5.66 billion), Ecommerce ($4.44 billion), Marketing ($4.16 billion), and Games ($2.21 billion).
Top 5 highest deals of 2013:
- Nest Labs – acquired by Google for $3.2 billion
- IBM – acquired by Lenovo for $2.3 billion
- AirWatch – acquired by VMWare for $1.5 billion
- Ticket Monster – acquired by Groupon for $260 million
- Dropbox – BlackRock invests $250 million
Number and dollar value of investments by region (2013):
- North America – 2342 – $25.47Bn
- Europe – 571 – $4.86Bn
- Asia/Pac – 299 – $5.64Bn
- Middle East – 73 – $0.25Bn
- South America – 25 – $0.21Bn
- Rest of World – 15 – $0.16Bn
Number and dollar value of acquisitions by region (2013):
- North America – 398 – $48.38Bn
- Asia/Pac – 123 – $4.4Bn
- Europe – 66 – $9.54Bn
- Middle East – 12 – $1.66Bn
- South America – 5 – $0.09Bn
- Rest of World – 1 – $0.00Bn
For more information, visit internetdealbook.com.