Venture investment activity sees $16.5 billion deployed to 1,797 companies in first quarter
SEATTLE, WA – During the first quarter of 2017, investors deployed $16.5 billion to 1,797 venture-backed startups, marking a slight uptick in capital invested over Q4 2016, but the fewest companies to receive investment since Q4 2011, according to the PitchBook-NVCA Venture Monitor. This decline, while significant compared to peak investment levels recorded between 2014 and 2016, indicates that the deceleration that started in the back half of 2016 continues in 2017 as the venture industry returns to a steadier pace of investment. Despite the slowdown in deal making, venture firms have plenty of cash to deploy to promising startups across the United States. Following a record year for venture fundraising in 2016, investors raised $7.9 billion across 58 vehicles, building on the record U.S. dry powder figures. (more…)
WASHINGTON, DC – Ahead of a congressional hearing today in the House of Representatives, the National Venture Capital Association (NVCA) outlined for lawmakers the negative impact the Volcker Rule has had on venture capital fund formation and investment in startups. The House Financial Services Subcommittee on Capital Markets, Securities, and Investment is holding a hearing today entitled, “Examining the Impact of the Volcker Rule on the Markets, Businesses, Investors, and Job Creators.”
“The American entrepreneurial spirit is key to expanded economic opportunity in the U.S., but is not being fully realized due to the unintended consequences of the Volcker rule on venture capital fund formation,” wrote Bobby Franklin, President and CEO of NVCA, in a letter to subcommittee Chairman Bill Huizenga (R-MI) and Ranking Member Carolyn Maloney (D-NY). (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today in support of the Fostering Innovation Act introduced by Reps. Kyrsten Sinema (D-AZ) and Trey Hollingsworth (R-IN).
“Since 2000 the United States is averaging less than half the number of IPOs annually. With more and more startups opting not to go public, this creates a lose-lose situation for the startups and the U.S. economy,” said Bobby Franklin, President and CEO of NVCA. (more…)
WASHINGTON, DC – At a congressional hearing today before the Senate Committee on Commerce, Science, and Transportation, NVCA Board Chair Venky Ganesan, Managing Director at Menlo Ventures, testified on the critical role of venture capital in supporting innovation in cybersecurity. Since 2010, venture investors have deployed over $14.6 billion in more than 740 cybersecurity companies, including $3.52 billion in 2015 and $2.75 billion in 2016.
“Cybersecurity innovation and venture capital have been inextricably intertwined right from the beginning. Some of the biggest innovations in cybersecurity have been introduced by venture capital backed startups,” said Ganesan in his prepared testimony. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced that NVCA Chair Venky Ganesan, Managing Director at Menlo Ventures, will testify on Wednesday, March 22 before the Senate Committee on Commerce, Science, and Transportation at a hearing entitled, “The Promises and Perils of Emerging Technologies for Cybersecurity.” The hearing will focus on the impact of emerging technologies in cybersecurity, including the opportunities and risks presented by new fields such as artificial intelligence, the internet of things, blockchain and quantum computing.
“We are excited to have Venky participate in a conversation with senators on the important role venture capital plays in spurring innovation in new technologies to counter emerging cyber threats ,” said Bobby Franklin, President and CEO of NVCA. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today in support of the nomination of Scott Gottlieb, M.D. for Commissioner of the Food and Drug Administration (FDA). A Resident Fellow at the American Enterprise Institute (AEI), Gottlieb has deep experience in the venture industry, having previously served as a venture partner in life sciences startups at New Enterprise Associates (NEA).
“Through his experiences in public service, as a practicing physician and as an investor in healthcare startups, Dr. Gottlieb has been on the front lines of medical innovation for decades,” said Bobby Franklin, President and CEO of NVCA. (more…)
MENLO PARK, CA – The National Venture Capital Association (NVCA) today honored leaders of the venture capital industry at the annual NVCA Leadership Gala for their significant contributions to advance innovation, strengthen the industry and promote entrepreneurship. In addition to the Lifetime Achievement in Venture Capital Award, Outstanding Service Award and American Spirit Award, NVCA added three new categories to the lineup this year, including the Rising Star Award, the Excellence in Healthcare Innovation Award and the Venture Firm of the Year Award. (more…)
Policies for Non-discrimination, Recruitment, Childcare Leave, Mentorship, Affinity Groups and Flexible Work Included in Model Document
WASHINGTON, DC – The National Venture Capital Association (NVCA) today unveiled sample human resources (“H.R.”) policies—titled “Sample H.R. Policies for Attracting and Retaining Diverse Talent” (“the Policies”)—to assist venture capital firms in fostering diverse and inclusive cultures. Prepared by Proskauer Rose and Miller Law Group with support from Silicon Valley Bank, the Policies are an extension of the work of the NVCA Diversity Task Force and will be made available on nvca.org with all the other model legal documents NVCA shares with the venture community.
Included in the document are sample policies for a firm mission statement, non-discrimination, recruitment, childcare leave, mentorship, participation in outside affinity groups and activities, and flexible work arrangements. (more…)
New and Improved Yearbook Features Updated Layout and Expanded Content
WASHINGTON, DC – The National Venture Capital Association (NVCA) today released the 20th edition of the annual NVCA Yearbook, documenting trends and analysis of venture capital activity in the United States from the past year and capturing historical data and information about venture’s role in fueling entrepreneurship in America. The NVCA Yearbook is an annual publication that provides statistics on the size and impact of the U.S. venture industry, investments into startups, capital raised and managed by venture capital firms, and exit activity either thorough an initial public offering (IPO) or merger and acquisition (M&A).
NVCA made several changes to the Yearbook this year, including an updated format and layout of the data, expanding the highlights of NVCA and its role in the entrepreneurial ecosystem, and sourcing the data to PitchBook, now the official data provider of NVCA. In addition to the Yearbook, NVCA is making available a copy of a supplementary data pack in PDF format (available to the public) and XLS format (available only to NVCA members). (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) today pledge to work with President Trump to advance opportunities for women in entrepreneurship and business. Recently President Trump announced an initiative in partnership with Canada to support women in business through the “Canada-United States Council for Advancement of Women Entrepreneurs and Business Leaders.”
“America’s venture capitalists are ready, eager, and able to partner with your Administration on this important initiative. NVCA members, hundreds of U.S. venture capital and corporate venture capital groups, support entrepreneurs by investing capital and resources to build the next-generation of innovative companies,” wrote Bobby Franklin, President and CEO of NVCA, in a letter to President Trump. (more…)