A pause, not a bubble popping
Overview
Despite a decline in activity, VC invested has remained robust
U.S. VC activity
Deal value ($B)
# of deals closed
8,722
9,608
9,091
7,690
6,534
5,260
4,167
4,571 4,351
3,177
$18
$78
$67
$44
$40
$42
$30
$26
$36
$35
1,810
$28
Overall U.S. VC activity slowed even
further in the first quarter of 2016,
even as capital invested remained
at a historically robust level. These
numbers are in line with what we
predicted in the previous edition of
this report series: a gradual deflation
in activity, in the initial stage of a
slowing private investment cycle.
Ample supplies of capital raised
in 2014 and 2015, however, still
incentivize VC firms to hunt for quality
opportunities. Consequently, capital
invested remained even stronger than
expected, but that can be chalked
up to timing as well as the sustained
activity of nontraditional VC investors
in a handful of massive late-stage
rounds—$9.4 billion of the $17.7
billion invested in 1Q was in late-stage
financings.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: PitchBook
*As of 3/31/2016
Sustained activity at the late stage has helped keep capital invested totals elevated
U.S. VC activity
$25
3,000
2,500
$20
2,000
$15
1,500
$10
1,000
$5
500
0
$0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010
Deal value ($B)
2011
2012
# of deals closed
2013
2014
Angel/Seed
2015
Early VC
2016
Late VC
Source: PitchBook
5
P I TC H B O O K 1 Q 201 6 U. S . V E N T U R E I N D U S T RY R E P O R T