PitchBook-NVCA Venture Monitor
July 10, 2017
For about two years now, the VC industry has been in a pattern of decline as the hyper activity of 2014 and 2015 gradually deflated back to normal. Now for two quarters in a row, overall VC activity within the US has been on the upswing. Deal count at both the early and late stage has seen increases, undoubtedly helped out by the robust fundraising that has taken place in recent years. Companies are still finding it difficult to find an exit route, however, and the investment-to-exit ratio has pushed to the highest spread in the past decade. While we don't expect this generate negative consequences, it will be interesting to see if the average time to exit continues to lengthen, which could eventually have consequences for LPs.