The US venture market was a bit unsettled heading into 2017. Dealmaking last year was a bit frosty compared to 2014 and 2015, when capital seemed easy to come by. To be fair, there were many unknowns: Would the new president’s policies have a major impact on investment? How would the public markets embrace unicorns and other highly valued startups? What would fundraising look like following two record years?
The early indication is that 2017 will be a healthy year for VC, and the recently published 1Q 2017 PitchBook-NVCA Venture Monitor report lays out all the current trends in the US venture market to help explain how the industry is moving. Here’s a recap of the top 24 charts from the report:
Venture Industry – Deals
Activity and deal value have started the year off slow
Median deal size has stayed at heightened levels at every stage
Angel & seed deals have seen the deepest drop
Early-stage deal value has come to somewhat of a plateau
The late stage has seen an increase in deals the past two quarters
Software received 37% of the deal flow in 1Q
First financing activity has fallen for seventh consecutive quarters
Corporate VC participation has stayed relatively strong
Growth equity deals have declined in count and value during recent quarters
More than 50% of 1Q deal value was in West Coast-headquartered companies
EXITS
Large exits by Snap ($3.4B) and AppDynamics ($3.7B) account for much of 1Q value
FUNDRAISING
Fundraising on pace to surpass $30 billion for the fourth straight year
For a full breakdown of the US venture industry, download your free copy of the 1Q 2017 PitchBook-NVCA Venture Monitor.
Article by PitchBook
