Sluggish year for VC liquidity overall, but exit sizes are increasing
SEATTLE, Sept. 30, 2013 - According to the latest venture capital data from PitchBook Data, Inc., venture firms completed 131 exits totaling $6.9 billion in 3Q 2013. The overall number of exits was in line with recent activity but the lack of any billion dollar exits caused the total capital amount to drop by 23% from the $9 billion seen during the same period a year ago.
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PitchBook's Key Insight:
Though venture capital exit counts and total capital value are down, venture capital firms are seeing better returns on their realized investments. A rise in the median exit size for venture capital-backed portfolio companies from $55 million in 3Q 2012 to $82 million in 3Q 2013 is likely a major factor. More than a few companies even experienced exit valuation step-ups (an increase in valuation from one round to the next) of more than 100% this quarter.
"Billion dollar exits like Yammer and Nicira Networks last year are the homerun every VC dreams for," said John Gabbert, CEO & Founder of PitchBook. "The median exit deal size increasing to $88 million though and the number of companies seeing positive exit valuation step-ups bodes well for strong sustainable returns for venture capital firms."
Other Insights from PitchBook:
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