3Q venture activity remains strong, with the second-highest amount of venture capital invested in the last decade
SEATTLE – PitchBook, the foremost data and technology provider for the global M&A markets, including private equity and venture capital, today released its 3Q 2014 global venture investment data. The numbers show no sign of pause for the global venture community, with a total of 1,633 fundings amounting to $21.3 billion of capital invested and 251 exits, IPOs or sales of venture-backed companies, all valued at a combined $17.2 billion. In addition, a striking 88 percent of funds met fundraising targets, 73 venture funds were closed and $9 billion was raised globally. The European venture industry witnessed a significant spike in venture activity, with 273 deals this past quarter totaling $3.4 billion. Additionally, and without surprise, deal sizes and valuations remain high across the entire funding spectrum.
Additional 3Q highlights
- Venture fundraising continues to be strong with the average fundraising time falling to under a year for the first time in several years
- Valuations continue to climb in the United States, with year-to-date pre-money valuations rising 20 percent at seed, 25 percent at Series A, 36 percent at Series B, 24 percent at Series C and 56 percent at Series D and later stages
- The net burn rates of companies, particularly in the software sector, have begun to increase over the last couple of quarters
- The summer marked a dip in venture-backed company IPOs and sales, although still remain at a healthy level. This will be one area to watch for signs of strains, as a result of the recent increases in valuations
- This quarter, the top three venture deals in terms of investment amount, all took place outside the U.S. markets (FlipKart - India, CureVac and Rocket Internet Germany)
“The main story lines of higher valuations and larger rounds continue to persist in the United States and increasingly outside the United States. The three biggest capital raisings were actually by companies in India and Germany, as evidence of the continued growth of the global venture industry,” explains Adley Bowden, Senior Director of Market Development and Analysis. “With down valuation rounds making up less than 15% of VC rounds, exit valuation step ups of over 80% and VC firms returning cash to LPs, we see the fourth quarter setting up to be another big one for the global venture industry.”
For a more visual look at the 3Q global venture numbers, see the corresponding datagraphic, here.
PitchBook Data, Ltd. is the foremost provider of data and research technology for the global M&A markets, including private equity and venture capital. PitchBook empowers clients to make the most informed business decisions by providing them with the highest quality information on the entire investment lifecycle through its flagship product, the PitchBook Platform. This award-winning, web-based platform features a powerful suite of integrated technology that meets the diverse, data-driven needs of the private markets. Better Data. Better Decisions.
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