Jul 19, 2016
From the Global Enterprise Institute
In this edition of the Venture Pulse report, we explore top-of-mind issues for investors in key regions of the world and reflect on a number of questions that will affect the VC market going forward, including:
- What factors are driving the declining number of deals in the VC market?
- How will the results of the UK’s Brexit referendum affect VC investment?
- Are VC-backed unicorns starting to die off?
- How are artificial intelligence technologies poised to reshape business?
Global Investors Continue to Dial Back Deal Activity in Q2’16
Following two consecutive quarters of declines, global funding to VC-backed companies edged up 3% to $27.4B in Q2’16, lifted by $1B+ rounds to ‘decacorns’ (such as Uber and SnapChat) valued at $10B+. Deal activity had already slowed noticeably in Q4’15 and Q1’16, but global financings dropped a further 6% in Q2’16, down to 1866.
Learn more about global VC activity,
US Deals Fall in Q2’16 While Funding Sees Slight Growth from Q1’16
US funding was up to $16.7B, rising 10% from Q1’16. However, the quarterly deal count of 1048 slipped 9% from the quarter prior, and represents a 26% year-on-year plunge. Quarterly deal growth was flat or negative across the top three states: California, Massachusetts and New York. But a few outsized mega-rounds lifted California’s total funding 63% from Q1’16.
For more analysis of North America VC activity,