US Venture Capital Investment in 2016

Venture capital firms invested $69.1 billion in 2016, down from $79.3 billion invested in 2015, according to the PitchBook-National Venture Capital Association Venture Monitor. There was 40 percent fewer rounds of more than of $100 million in companies by VC firms last year— 59 large rounds last year, down from 98 in 2015.

At the end of 2016, fundraising slowed down with 50 funds raising $7.8 billion in the fourth quarter, down from 62 funds that raised $11.7 billion in the fourth quarter of 2015. However, VC firms raised the most amount of capital last year ($41.6 billion in 253 funds) By comparison; VC firms raised $35 billion in 2015. Firms that raised funds with over $1 billion of total capital last year include Kleiner Perkins Caufield & Byers, Greylock Partners, and Andreessen Horowitz.

Exits from Portfolio Company investments also reduced last year, with 726 exits worth $46.8 billion, down from 961 exits valued $50.4 billion in 2015. The slowdown was more in the 4th quarter, with 142 exist worth $6.8 billion, compared to 185 valued $16 billion in the 4th quarter of 2015.

References

http://www.prnewswire.com/news-releases/after-peaking-in-2015-venture-investment-activity-normalizes-in-2016-according-to-pitchbook-nvca-venture-monitor-300389051.html

http://www.pionline.com/article/20170111/ONLINE/170119955/venture-capital-investing-down-in-2016-despite-highest-fundraising-in-10-years

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s