First half of 2017，my country’s entertainment industry continues its past development trend，From the same period last year，Capital market related data has been slightly reduced，But under the core concept of IP pan-entertainment，my country’s entertainment industry is creating a new development model。

From a capital perspective，Equity market、Motherboard Market、The New Third Board market is the three key channels for cultural and entertainment venture capital investment。Equity investment involving scale 616.5.8 billion yuan，Decreased by 21% year-on-year.16%；IPO listed companies have increased，for 16 families，Listed entertainment companies through private placement、Issue bonds、Issue trust financing 1465.0.3 billion yuan；NEEQ，Only 240 entertainment companies were listed in the first half of this year，36 year-on-year decrease.34%，However, entertainment companies listed on the New OTC Market launched 849 various investments。

Breaking it down，The development of the entertainment industry in the first half of 2017 is inseparable from the maturity and expansion of IP pan-entertainment，IP as the core，self-media、Webcast、Internet celebrity economy、Film production and distribution、Many traditional entertainment industries such as animation production and distribution have found a joint point for integrated development。With the help of social capital，The entertainment industry and the capital market have formed a healthy mutual development。

Since 2017，my country’s economy is improving overall under the leadership and supervision of multiple departments，The efforts of “seeking progress while maintaining stability” have initially yielded results of “making progress while maintaining stability”。Among them，The entertainment industry has played a huge positive role，After checking the above listing、Strict supervision of capital operations in the entertainment field, mainly mergers and acquisitions，my country’s entertainment industry gradually returns to value rationality，Film and television industry bubble extrusion，Premium valuation、The phenomenon of sky-high price acquisitions and other phenomena has been significantly reduced。Under the pan-entertainment concept with IP as the core，The entertainment industry actively integrates with the traditional cultural industry，Explore and innovate to form new industry forms，Resolutely implement and deepen supply-side reform，Effectively promote my country’s consumption upgrade，Promote economic structural transformation。

1. Capital market situation of entertainment industry in the first half of 2017

First half of 2017，my country’s entertainment industry capital market is experiencing some decline，From the perspective of equity investment，Both the total scale and cases have declined to varying degrees。In fact，First half of this year，my country’s entertainment entrepreneurship market 188bet app lacks attractive outlets and hot spots，The formal market has strengthened the IPO listing of entertainment companies、Refinancing、Multi-faceted supervision of credit risks in mergers and acquisitions，Many factors，It has just calmed down the excessive enthusiasm of capital for the entertainment industry in the past two years。You can often see movies and TV shows in 2016、Games and other pan-entertainment companies were acquired or invested at eye-popping prices，First half of 2017，This is the time for the entertainment industry to burst its bubble。

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First half of 2017，The IP concept of my country’s cultural industry is becoming more and more intense，In original literature、After animation and other leading fields have formed a relatively stable market structure，Most social funds focus on films and television derived from IP、Animation project investment，And entertainment companies are also making arrangements for IP derivatives，From Film and Television、Animation team to research and development and sales of peripheral derivatives、Theme parks, etc.，Gradually improve related industrial chains。But numerically，The number of funds active in the equity market has decreased。

1. The total volume declined slightly, and the overall scale became stable

According to statistics from the China Cultural Industry Investment and Financing Data Platform，First half of this year，A total of 410 equity investments and financings in my country’s entertainment industry，Involving capital scale 616.5.8 billion yuan。Compared to the same period in the past four years，The downward trend of equity investment and financing in the entertainment industry weakened in the first half of this year，The scale of funds involved decreased by 21% compared with the same period last year.16%，Decreased by 7 percentage points compared with last year；The number of cases decreased by 33 compared with the same period last year，Reduce 7.45%，Decreased by 26 percentage points compared with last year。

Chart 1  Status of equity investment and financing in the entertainment industry during the same period from 2014 to the first half of 2017

2. Industry concerns have changed significantly, and scale hot spots are scattered

Among the 410 equity investment and financing cases in my country’s entertainment industry in the first half of 2017，The industries involved are still diverse，The Internet information service industry has always maintained its top position，A total of 131 cases occurred in the first half of the year，Involving capital scale 170.5.1 billion yuan，Compared to 489 in the same period last year.6.2 billion yuan，The year-on-year decrease is as high as 41.73%，The number of cases decreased by nearly 13，The average size of a single case has also been significantly reduced。

First half of 2017，Under the influence of the concept of IP in the entertainment industry，Funds flowed to multiple fields，Looking at traditional statistical types，Industry hot spots are much more scattered than before。The top four industries in terms of financing scale in the first half of this year are the Internet information services industry、Software Industry、Musical Instrument、Toy and audio-visual equipment manufacturing、Journalism，As shown in chart 2，Scale 188bet sports betting app download proportion is 27.65%、17.13%、14.23%、12.46%；Comparing the top four equity investment and financing situations in the first half of 2016，respectively Internet information service industry 489.6.2 billion yuan (62.60%）、Sports Industry Management 99.9.1 billion yuan (12.7%）、Mobile Internet Service Industry 37.1.8 billion yuan (4.75%）、Software Industry 31.3.3 billion yuan (4.01%）。

Chart 2  Distribution of equity investment and financing industries in my country’s entertainment industry in the first half of 2017

The number of equity investment and financing cases in various industries reflects the market’s attention。First half of 2017，The industry with the largest number of cases is the Internet information service industry，And the proportion is 31.12%，32 compared with the same period last year.28% is not much different。But ranked second in 2016、The top three mobile Internet services and sports industry have taken a back seat under the influence of the IP concept，First half of 2017，Film and television production and distribution、The two major Internet content production industries rank second、Third。

Chart 3  Distribution of the number of equity investment and financing cases in various entertainment industries in my country in the first half of 2016

Chart 4  Distribution of the number of equity investment and financing cases in various entertainment industries in my country in the first half of 2017

3. Major counterattack in second-tier cities, key enterprises make efforts

From the perspective of geographical distribution，Beijing will maintain the scale of equity investment and financing in the entertainment industry for a long time、The number one position，First half of this year，A total of 184 cases involving 310 funds.3.3 billion yuan，Accounting for 43 respectively.71%、50.33%。

What is more special than before is the change in the second echelon。In terms of quantity，Shanghai、Guangdong is still the city with the largest number of cases after Beijing，But judging from the scale of financing，Shanghai、Guangdong is far behind Zhejiang and Tianjin。There were 27 equity investment and financing cases in Zhejiang Province in the first half of 2017，The scale of funds involved is as high as 92.5.4 billion yuan，The main one is Hangzhou-based Koubei.com’s financing of up to US$1.1 billion；Tianjin followed with only 8 financing cases，But the capital size is as high as 88.0.6 billion yuan，The main force is LeTV Zhixin (Internet TV business) twice in total 86.700 million yuan financing behavior，Accounting for 98% of Tianjin’s entertainment industry financing scale.46%。

Chart 5  Regional distribution of equity investment and financing in my country’s entertainment industry in the first half of 2017

4. Online education has attracted much attention, and the hot spots are slightly different at each stage

Overview of the financing situation at various stages of my country’s entertainment industry in the first half of this year，still reflects the same characteristics as before: the number of cases in the start-up stage is absolutely dominant，But the total financing amount is relatively small；Growth period、The number of equity investment and financing cases of mature-stage enterprises is relatively small，But the financing scale accounts for the majority。

Chart 6  The equity investment and financing rounds of my country’s entertainment industry in the first half of 2017

Look at it in stages，The degree of investment and financing attention at each stage is slightly different。

The total number of equity investment and financing cases in the start-up stage (seed angel round) is 100，Internet Information Services、Film and television production and distribution、Online games、The number of investment and financing 188bet online sports betting cases in 8 industries including Internet content production accounts for 85%，Details are shown in Figure 7。In various industry segments，Online education、Online travel attracts the most attention，The number of cases even exceeds that of other major industry categories。

Chart 7  Investment and Financing Situation of Equity Investment and Financing in the Initial Stage of my country’s Entertainment Industry in the First Half of 2017

In a growing entertainment company，From the perspective of major categories，Except for Internet information services，The mobile Internet service industry and sports industry have the most investment and financing cases，Internet content production and film and television production and distribution rules、The software industry is only slightly behind。From the perspective of industry segments，Online education still attracts much attention，Secondly, Internet advertising and marketing catches up，Online travel has lost much attention。

Chart 8  The investment and financing situation of my country’s entertainment industry equity investment and financing in the growth period in the first half of 2017

In the mature stage of entertainment enterprises，The situation of capital concern has changed again。Except for Internet information services，Online games have the most investment and financing cases、Software Industry，Followed by film and television production and distribution，Text、body、Entertainment equipment manufacturing，Musical Instrument、Toys and audio-visual equipment manufacturing are three relatively asset-heavy industries。And in the subdivision，Online education is still the focus of capital。

 Chart 9  The investment and financing situation of equity investment and financing in my country’s entertainment industry in the mature period in the first half of 2017

(2) Main board listing: increased number of IPOs，Listed cultural companies actively participate in the capital market

1.The number of listed companies increased rapidly year-on-year，The film and television pan-entertainment companies are absent

First half of 2017，The IPO of my country’s cultural and entertainment companies is greatly affected by policies，A total of 16 cultural enterprises are listed on the main board。Since the second half of 2016，The China Securities Regulatory Commission further strengthens film and television、Entertainment enterprise IPO review，To the first half of 2017，Although the number of cultural companies IPO'd on my country's main board has increased compared with the same period last year，But most of them serve cultural creativity and design、Industrial categories such as arts and crafts production，IP pan-entertainment companies represented by film and television IPOs are absent。

Chart 10  Overview of my country’s cultural industry IPOs in 2016 and the first half of 2017

2. Listed cultural companies actively participate in the capital market  

First half of this year，my country’s listed entertainment companies actively engage in investment and financing activities through the capital market，where，In terms of financing, discovery bonds and private placement are more commonly used.，Financing 581 respectively.2.7 billion yuan and 880.7.6 billion yuan；Investment，Usually conducted by initiating or participating in mergers and acquisitions、Equity investment、Investment Fund、Establishment of a subsidiary，The highest cost is mergers and acquisitions，188bet online sports betting In total 52 cases，Total funds involved are 308.4.6 billion yuan，In comparison，A total of 54 new subsidiaries were established，The scale of funds involved is only 35.7.2 billion yuan。

Chart 11  Capital trends of my country’s listed entertainment companies in the first half of 2017

3. The concept of IP is prominent, and the investment of listed companies is mainly in film and television

In the Capital Dynamics of Listed Cultural Enterprises，Outside investment funds and non-cultural industries，77 mergers and acquisitions in total、Equity investment、Relevant cases of newly established subsidiaries are in the cultural industry，Inflow 353.3.7 billion yuan。From the perspective of investment direction，A total of 18 cultural industries are involved，The software industry with the largest number of occurrences，But the total investment is only 38.7.7 billion yuan。The film and television production and distribution industry includes film production and distribution、TV Production and Distribution、Animation production and distribution and cinema line four industry subcategories，A total of 16 cases occurred in related fields，The scale of funds involved is the largest among all industries，As shown in chart 12，The second is the online gaming industry，10 investment events，Investment amount 55.4.1 billion yuan。

Chart 12  Investment directions of my country’s listed cultural enterprises in the first half of 2017

(3) New OTC Market: Declining willingness of literary companies to list，Capital flow methods urgently need to be enriched

1. The number of listings dropped sharply during the same period, and the industry changed significantly

Compared to the same period last year，The number of Chinese entertainment companies listed on the New OTC Market has dropped significantly，Decreased from 377 in the first half of 2016 to 240，Decrease reaches 36.34%。

From a policy perspective，Although after the NEEQ implemented the tiered system，Lowered the listing standards，However, the number of listings of entertainment companies did not rise but fell，It can be seen after entering 2017，The willingness of entertainment companies to list has weakened。

Chart 13  Number of cultural and entertainment companies listed on the New OTC Market in 2016 and the first half of 2017

From the perspective of various fields，The number of listed companies in various industries has generally declined。Among the 9 industries with more than 15 companies listed in 2016，Internet informatics service industry only、Software Industry、Advertising Creativity and Agency、Training Industry、The tourism industry still maintains more than 15 listings；And tourism，It is also the only industry that has experienced growth。In each segment，The largest decline was in the mobile Internet service industry，Decrease by 69.57%，The second is the film and television production and distribution industry，Decrease of 67.5%。

Chart 14  New OTC listing status of various entertainment industries in my country in 2016 and the first half of 2017

2.The capital behavior of third-board companies is single，Investment directions are evenly distributed

Due to the new three board mechanism design，Equity trading only has one method: directional issuance，Circulation is relatively simple。According to statistics from the China Cultural Industry Investment and Financing Data Platform，First half of this year，The capital trends of entertainment companies on my country’s New OTC Market are all investment directions，That is, a new subsidiary、Initiate or participate in mergers and acquisitions、Equity investment、Four 188bet Online Sports Betting and Casino ways to initiate or participate in investment funds，A total of 849 capital actions occurred，But the scale of funds involved is not comparable to that of companies listed on the main board，Only 85.300 million yuan。

What is different from listed companies，NEEQ companies prefer to invest by establishing subsidiaries，shown in chart 15，There were 539 cases of NEEQ companies establishing subsidiaries in just half a year，Involving 37 funds.7.4 billion yuan。

Chart 15  2017 New OTC Market Cultural Enterprise Capital Trends

From the perspective of capital operation，Go out to invest in funds and non-cultural enterprises，A total of 632 cases were invested in the cultural industry，Involving 42 funds.8.1 billion yuan。Judging from the total scale of each field，The distribution of various industries is relatively even，But judging from the number of cases，The gap is significant: among them，A total of 102 investment behaviors occurred in the Internet information service industry；Training Industry、Advertising Creativity and Agency、Film and television production and distribution are the second echelon；Secondly，Tourism、The number of cases in the online gaming industry is more than 35，The number of cases in other industries is less than 30。

Chart 16  Distribution of my country’s New OTC Market Entertainment Enterprise Investment Industry (Top 15) in the First Half of 2017

*This article is "China Entertainment Industry Entrepreneurship and Investment Analysis Report in the First Half of 2017》The first half, please click the link to read the second half:《China Entertainment Industry Entrepreneurship and Investment Analysis Report in the First Half of 2017(Part 2)》 . Source of article: Mala Entertainment Investment, original title: "China Entertainment Industry Entrepreneurship and Investment Analysis Report in the First Half of 2017》