SEATTLE, July 11, 2019 – The second quarter of 2019 set a quarterly record with $138.3 billion in exit value, bringing total venture-backed exit activity through the first half of the year to $188.5 billion, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity in the entrepreneurial ecosystem jointly produced by PitchBook and the National Venture Capital Association (NVCA), with support from Silicon Valley Bank, Perkins Coie and Solium. A flurry of highly anticipated tech IPOs drove exit value to already surpass every other annual exit total. This strong exit activity has produced strong distributions for LPs, who are recycling that capital into new VC funds. Total venture capital investment through the first half of 2019 reached $66 billion and is nearly on pace to match the record levels of capital invested in 2018. At this pace, 2019 would mark the second consecutive year in which VC invested has topped $100 billion, further proving how the strategy has evolved and matured over the last decade. CVC activity tempered slightly this quarter but the percentage of CVC-involved deals over $50 million rose to a new decade high of 21% in the first half of 2019. Mega-deal ($100 million+) activity flourished, with 123 mega-deals closed through the first six months of the year accounting for 44.6% of total VC investment. However, deal sizes and valuations in aggregate have plateaued so far in 2019 after climbing incessantly for several years. Fundraising activity got off to a slower start this year relative to 2018’s record but accelerated through 2Q and appears primed to maintain the momentum through year end. Read more
SEATTLE – April 9, 2019 – After setting an all-time high in 2018, VC investment maintained its momentum in the first quarter of 2019, according to the PitchBook-NVCA Venture Monitor. The quarterly report is the authoritative source on venture capital activity in the US entrepreneurial ecosystem and is jointly produced by PitchBook and the National Venture Capital Associate (NVCA), with support from Silicon Valley Bank, Perkins Coie and Solium. For the first time, the report includes a new section on venture investment in US-female founded companies, which will be a recurring section in all future reports. Continuing the developments of the past few years, larger deals drove elevated total capital investment across fewer transactions as valuations have again climbed to unprecedented levels. These ongoing trends are largely due to increased investor competition and the prevalence of mega-funds (VC funds over $500 million). Corporate VC activity as a share of overall VC activity reached a new high, doubling over the past six years and underscoring the heightened role that CVC investors are taking in large rounds at later stages. The exit market retained some of its momentum from 2018, with outsized liquidity events driving quarterly exit value higher. Lyft’s IPO and six VC-backed acquisitions over $650 million helped to carry exit value in 1Q 2019, with a host of upcoming outsized IPOs poised to buoy exit value throughout the year. Fundraising in 1Q cooled compared to 2018 levels but appears primed to accelerate throughout the year as several prominent firms are on the road with new vehicles seeking at least $1 billion. Read more
SEATTLE – January 10, 2019 – By the end of 2018, the venture industry deployed $130.9 billion in US-based startups, surpassing the all-time high in 2000 and illustrating the maturation of the VC ecosystem, according to the PitchBook-NVCA Venture Monitor. The quarterly report is the authoritative source on venture capital activity in the US entrepreneurial ecosystem and is jointly produced by PitchBook and the National Venture Capital Associate (NVCA). With $75.7 billion in VC dry powder, investors funneled capital into the startup ecosystem at a record pace in 2018, boosting deal sizes across the entire VC spectrum. Mega-deals continued to dominate the dealmaking environment, increasing in count by 91.3% over 2017. The strength of dealmaking over the last several years led to a strong exit market in 2018 with elevated exit sizes driving total value to $122.0 billion. IPOs returned greater than 50% of exit value for the second straight year as IPOs and buyouts continued to scrape away at M&A’s lead as a proportion of exit count and value. Similar to the record dealmaking environment, 2018 was also a banner year for venture fundraising as VCs raised over $55.5 billion across 256 vehicles, the highest total capital raised recorded. Read more
Mega-Funds Fuel Strong Dealmaking, Particularly in Late Stage Startups and Unicorns as Investors Compete Fiercely for Deals; Several Outsized Exits Drove Exit Value & Provided Much-Needed Liquidity
SEATTLE, WA – October 9, 2018 – In the third quarter of 2018, investment into US venture capital-backed companies topped $27.8 billion, pushing 2018’s total venture capital (VC) deal value to $84.3 billion. At this pace, 2018 could hold the mark for most venture capital invested in the US in a single year, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity in the entrepreneurial ecosystem jointly produced by PitchBook and the National Venture Capital Association (NVCA). Findings reveal 2018 median VC deal sizes experienced double-digit percentage growth across all stages compared to 2017, the highest jump since 2015. The steady increase in deal sizes can be attributed to the growing number of mega-funds raised, as investors increasingly view larger vehicles as a competitive advantage to invest in high-quality startups. This can be seen by the growing proportion of venture investment in the late stage, which made up nearly 23% of total VC deal count, the highest percentage since 2011. Additionally, the VC exit market has shown signs of strength, with $20.9 billion exited across 182 deals in 3Q, bringing the yearly total to $80.4 billion. Sustained dealmaking in the later stage of the VC market is expected to drive more outsized exits for the duration of this market cycle, suppressing investor concerns over liquidity. Read more
Sustained Momentum in Venture Fundraising Continued to Fuel Strong Dealmaking Across All Stages in 2018; Exit Market Showed Signs of Improvement with IPO Count on Track to Become Second Best Year since 2000
SEATTLE, WA – Investment in 3,912 venture-backed companies reached $57.5 billion invested across 3,997 deals in the first half of 2018, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity in the entrepreneurial ecosystem jointly produced by PitchBook and the National Venture Capital Association (NVCA). At this pace, venture investment is expected to meet or exceed capital invested in 2017, which saw the highest amount of capital deployed to the entrepreneurial ecosystem since the dot com era (early 2000’s). Deal value was driven in part by investment in late-stage companies and unicorns, however, deal sizes increased across all stages. This is most notable in the angel and seed stage, which has been boosted by the emergence of pre-seed financings. These pre-seed rounds allowed for more mature business models by the time of initial seed rounds, naturally leading to larger deal sizes. Additionally, the venture exit market remained healthy in the first half of 2018 and is expected to continue improving with several unicorns poised for exits. Venture fundraising also remained strong, especially for first time fund managers with niche or regional strategies. Read more
Investors Deployed Record Amount of Capital to Venture-Backed Companies in 1Q 2018, Despite Slower Pace of Fundraising and Sluggish Exit Market; Industry Remains Optimistic for Another Banner Year, According to 1Q 2018 PitchBook-NVCA Venture Monitor
SEATTLE, WA – Investment into venture-backed companies is already on pace to experience another record-breaking year in 2018, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity in the entrepreneurial ecosystem jointly produced by PitchBook and the National Venture Capital Association (NVCA). Coming off multiple years of record fundraising, just over $8 billion raised in 1Q 2018, a slight decline from previous quarters. Despite the slow start, several billion-dollar mega-funds have since been announced, which are expected to boost fund size and count as 2018 unfolds. The sustained momentum in venture fundraising has continued to fuel ramped dealmaking. Investors deployed the highest amount of capital in 1Q 2018 than any single quarter since 2006 ($28.2 billion), with unicorns attracting over 18% of total VC capital. The exit market for venture-backed companies remained sluggish in the first quarter; however, several landmark deals helped drive exit value, including Amazon’s $1.2 billion acquisition of Ring and DropBox’s $756 million public debut. The momentum generated from these exits has created optimism for a stronger exit market in 2018.
“The first quarter of 2018 picked up right where 2017 left off, with the largest amount of capital deployed into venture-backed companies in a single quarter since 2006, marking a very strong start to venture investment this year,” said Bobby Franklin, President and CEO of NVCA. Read more
2017 Was a Banner Year for Venture Capital, Marked by Record Fundraising and Unicorn Investment Activity and Exits, According to the PitchBook-NVCA Venture Monitor
SEATTLE, WA – The U.S. venture capital (VC) industry finished strong in 2017 with $84 billion invested in 8,035 companies across 8,076 deals, the highest annual amount of capital deployed to the entrepreneurial ecosystem since the early 2000’s, according to the PitchBook-NVCA Venture Monitor. Over the past several years, the VC industry has evolved as VC-backed companies stay private longer and command larger deal sizes. With fewer transactions yet more capital deployed into higher valued companies, deal counts dropped to the lowest figure since 2012, while median and average deal sizes reached a decade-high in 2017. Helping to drive this trend, Unicorns (i.e., VC-backed companies valued at $1 billion or more) alone raised $19.2 billion in capital, more than they have in any other year on record. This group also received a dramatically outsized portion of capital at 22.8% of total dollars, yet made up just 0.9% of deal volume. Boosted by 13 unicorn exits in 2017, overall VC exit value remained flat, despite a three-year decline in exit counts. Meanwhile, fundraising continued at a high clip as limited partners (LP) committed more than $32 billion to the asset class in 2017, bringing the trailing four-year total to $142 billion. Read more
Investors Pressed Pause on Fundraising as They Pump Capital into World’s Most Promising Companies, Meanwhile PE Firms Provide Much Needed Liquidity for VC’s Sluggish Exit Market
SEATTLE, WA – Investment into venture-backed companies in 2017 is on track to match or exceed dollars deployed in 2016, and if this pace holds, full-year 2017 venture capital (VC) dollars invested could be the highest in the past decade, according to the 3Q 2017 PitchBook-NVCA Venture Monitor. Venture investors deployed $21.5 billion to more than 1,699 venture-backed companies during the third quarter, bringing 2017’s total investment to $61.4 billion deployed across 5,948 deals to date. Mega-deals completed in the third quarter, like WeWork’s $3 billion infusion of VC, helped inflate deal value and have become the new normal in VC where investors pump larger amounts of capital into fewer companies, especially in the later stages. In fact, deals that carried a valuation of $1 billion or more represented less than 1 percent of 2017 deal count, but nearly 22 percent of the aggregate deal value. Meanwhile, private equity firms are increasingly providing an alternative liquidity option for a tepid exit market, which is pacing for the lowest number of exits since 2010.
“We are witnessing an upward trend in the amount of capital deployed while the number of companies receiving investment continues to shrink. However, if you peel back the onion, you uncover the influence unicorns are having on market dynamics, with investments by non-traditional investors into these companies inflating the overall dollars invested and valuations,” said Bobby Franklin, President and CEO of NVCA. Read more
Fundraising Environment Remains Favorable with $130 Billion Raised since 2014 for Deployment to Entrepreneurial Ecosystem
SEATTLE, WA – Investors deployed $21.78 billion to 1,958 venture-backed companies during the second quarter, marking a significant uptick from the first quarter in capital invested while the number of companies receiving investment was stable, according to the PitchBook-NVCA Venture Monitor. Through the first six months of the year, 3,876 companies received $37.76 billion in financing, setting a pace to near or surpass the $71 billion invested last year, and confirming that the industry has leveled off after peaking in 2015. Looking to the second half of the year, venture investors will continue to deploy capital to high-growth startups, having raised more than $130 billion since 2014, including $11.4 billion raised in the second quarter of 2017 across 58 funds.
“Venture investment activity the last few quarters supports evidence from the field that the industry is in the middle of a self-correction as valuations come down and the marketplace cools off,” said Bobby Franklin, President and CEO of NVCA. Read more
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. Read more
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