Qian Zhan Wang·2025-09-17 06:13Core Insights - The supply chain finance market has shown a declining trend in both investment and financing activities from 2014 to 2025, with a peak financing amount of 38 billion yuan in 2018, reflecting the rapid development of the supply chain industry and its funding needs [1][2] - The average single investment amount in supply chain finance has mostly remained between 100 million to 200 million yuan from 2014 to 2025, with notable spikes in 2018, 2020, and 2022 due to specific policy supports and economic measures [2][9] - The investment landscape is shifting towards more cautious capital market behavior, with average single investment amounts expected to drop to the million yuan level starting in 2024 [2] Investment Trends - The number of financing events in the supply chain finance sector peaked in 2016 with 113 events, but has since decreased, with only 8 events recorded in both 2023 and 2024 [1] - In the first half of 2025, the total investment amount further decreased to 230 million yuan, indicating a continued contraction in the market [1] - B-round and strategic financing rounds are the most common, each accounting for 23% of the total financing rounds from 2021 to 2025, indicating a trend towards maturity and stability in financing needs [9] Geographic Focus - Investment in the supply chain finance sector is primarily concentrated in Shanghai (33%), followed by Beijing (16%), and both Guangdong and Zhejiang (15%) [12][14] - These regions are characterized by their economic development, numerous enterprises, and well-established industrial chains, facilitating frequent flows of capital, goods, and information [12] Investment Entities - Private equity and venture capital (PE/VC) firms dominate the investment landscape, accounting for 62% of total investments, while corporate investors make up 24% [11] - The presence of local government-backed funds is also notable, with government investments comprising around 4% of the total [11] Mergers and Acquisitions - The supply chain finance industry is experiencing a trend towards horizontal mergers, with most transactions involving the acquisition of over 50% equity in smaller firms, reflecting a move towards industry standardization [18] - The primary motivations for mergers and acquisitions include business expansion and capital appreciation, with a focus on enhancing service quality and regulatory compliance [18]