The Venture Capital Industry in 2019?>
Crunchbase data shows 2019 first quarter deal volumes of $75 billion, that growth of just 6% year on year. While this is impressive growth these figures are much smaller than the performance of the industry in the past decade. 2018’s total financing of $254 billion was a 46% leap in 2017. The slower growth rate and could be due to a dampening appetite for Chinese investments. The second and third quarters are historically the most active investing periods, so as the year unfolds, a clearer picture of the trend will appear.
- There are fewer companies being funded
- Startups are raising larger rounds and staying private longer
- More growth and value upside is remaining inside private markets
- More ‘mega rounds’ are happening to maintain private stakes
While the industry appears relatively healthy, an unprecedented trend of fewer funded companies, but larger round sizes have emerged.
Investors agree that some of the best opportunities are in the US ecosystem. Appetite for innovation returns remains robust. The successive fundraises by venture firms are larger than ever, and family offices and private equity firms are eager to participate.
Exciting prospects are appearing in Canada which is capitalizing on its leadership role in artificial intelligence.
Despite the declines, the market for startup fundraising remains good with capital abound.