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PitchBook-NVCA Venture Monitor

2Q 2018

PitchBook-NVCA Venture Monitor

July 9, 2018

Maybe more than ever before, the first half of 2018 embodied the high level of capital availability throughout the US venture industry. $57.5 billion was invested across 4,000 deals, pacing the year to surpass 2017's decade-high total for capital invested by the end of next quarter. Never since the dot-com era has so much capital flowed into every stage. Continued strength of the VC fundraising ecosystem will continue to fuel the fire, but the activity of large nontraditional investors is adding further opportunities for entrepreneurs and established startups to raise money. 

The 2Q 2018 PitchBook-NVCA Venture Monitor, written in partnership with Silicon Valley Bank, Perkins Coie and Solium, analyzes the data behind the continued boom for US VC, looking at deals, exits and fundraising through the lens all participants in the market. This edition contains breakdowns of corporate VC, mega-deals and nontraditional investment, as well as a Q&A on the life sciences market.

Key highlights:

  • The $57.5 billion of VC invested in US companies through 2Q 2018 is higher than six of the past 10 full-year totals, and puts the year on pace to surpass $100 billion in deal value for the first time since the dot-com era. Despite the high deal value, deal count has remained stable, though at a slower pace than seen in 2013-2015. 
  • Exit value remains robust despite a slightly slower exit pace than 2017. Near $29 billion in exit value has been realized so far in 2018. 11 companies have exited at a post-money valuation of at least $1 billion, with nine more reaching at least $500 million. Such large exits continue to underpin the high levels of capital being returned to investors and LPs.
  • While the fundraising surge from 2014-2016 was thought to be the precursor to a slowdown for GPs raising, the high level of commitments to new VC funds has continued. Not including Sequoia's $6 billion first close on their record-breaking fund, 2018 has already seen $20.2 billion in commitments received for new vehicles. The year is also pacing to see more than 300 new funds raised in a single year for just the second-time.