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Venture Pulse - Q2 2016 Global Analysis of Venture Funding

Jul 19, 2016
From the Global Enterprise Institute

q1 venture pulse

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,

KPMG's Venture Capital Practice

KPMG’s Venture Capital practice offers audit, tax and advisory services tailored for venture-backed startups and the next generation of leading companies. Whether you are launching a new company, expanding abroad, complying with regulatory pressures or planning an exit – our global teams are there to help at each stage of growth. Our passion and mindset matches the companies we serve: entrepreneurial, hands-on, proactive, visionary, and dedicated.  

For further analysis of global and regional venture capital activity and trends, contact our professionals in the Venture Capital practice. Visit www.kpmg.com/us/venturecapital