As we previously covered in the PitchBook Blog, IT companies, which normally dominate the VC IPO landscape, have seen their share of IPOs decrease significantly since the beginning of 2013. Instead, many of these companies have been raising massive financings (at eye-popping valuations) in the private markets. But it's not just VC firms that are making these giant funding rounds possible. Public market investors like Tiger Global, T. Rowe Price, Coatue Management, Fidelity Investments and Viking Global have become increasingly involved in the venture capital space, investing in companies that are successful, established and primed to go public—just not yet.
According to the PitchBook Platform, the five mentioned public market investors participated in a cumulative 30 financings involving VC-backed companies in 2013; in 2014 that number is already 21. Additionally, capital invested through those deals in 2013 added up to $1.7 billion; capital invested in such deals this year has already reached $3.3 billion. Some additional VC-backed companies that have recently turned to public market investors to help raise enormous funding rounds include Lyft, Square, Quora, Box and Credit Karma, among many others.