23 Jul Global analysis of venture funding Q2 2015
KPMG and CB Insights have just released their inaugural edition of Venture Pulse Report. This report anlayzed on VC-backed Companies Haul in US$32 Billion Globally in Q2 2015 Due to Mega Financing and Rise of Non-Traditional Investors Venture capital backed companies raised more than $32B in Q2 2015 across 1819 deals globally. The Venture Pulse Q2’15 Global Analysis of Venture Funding offers in-depth analysis into the financing trends including Unicorn growth, mega-rounds, country breakdowns, the most active investors, and more.
It’s an interesting time to be in the venture capital market, with high returns for investors who get it right. From disruptive technologies to creative business models – there is a lot to talk about. The goal of this report is to provide you with more than investment statistics; to highlight what’s driving certain trends and provide some foresight into what might be coming down the road.
This quarter’s report shares insights on a number of key questions, including:
• Why is Unicorn investing on the rise?
• Why does corporate investing continue to be strong, particularly in Asia?
• What is prompting the funding spike in Europe?
• Why is Asia seeing a VC investment boom?
Key highlights include:
Mega-rounds on the rise: $100M+ financings to VC-backed companies have drastically increased in 2015, with over 100 mega-rounds including 61 in Q2’15 which cumulatively raised over $16B.
Unicorns Rising: Q2’15 saw 24 new billion-dollar companies compared to just 9 in the same quarter a year prior. North America led all continents with 12 new Unicorns in Q2’15.
US Funding on track for $70B+ year: After a multi-year high of $56.4B in 2014, 2015 is on track to reach five-year highs with $36.9B already invested in the first half of the year.
Corporates get active in Asia: Corporates accounted for one-third of all deals to Asian VC-backed companies in Q2’15, compared to one-fifth of deals on a global level.
Late-stage deal sizes expanding in Europe: Late-stage European deal sizes hit an average of $52.2M in Q2’15, almost double the level of a year before. Four mega-deals of $100M+ contributed to the spike including a $526M Series G to Spotify.
UK Extends its reign as top European market: The UK accounted for roughly one-third of all European funding and deals, including a $500M corporate minority investment in OneWeb and a $150M Series E for Funding Circle.
VC Investment on the Rise
Venture capital investment is thriving around the world. During Q2-2015 alone, there was over $32 billion raised worldwide across 1,819 deals. A number of factors are driving this activity, including low interest rates compelling investors to seek avenues of greater return, strong participation by corporate investors, and new capital sources including hedge funds, mutual funds and sovereign wealth funds. Taken together, these factors mean that VC-focused investment capital is more available than ever before.
Numerous disruptive technologies and applications are also spurring interest and investment from the VC community. The growth of new on-demand platforms continues to be particularly robust. This trend, which escalated with Uber and Airbnb, is now expanding into new verticals and well beyond North America.
Access to investment and stronger investor interest, combined with a trend towards late stage mega-rounds means companies are staying private longer and growing to an immense size. Already this year, 35 venture capital backed companies have achieved billion-dollar valuations, including Lyft, Domo Technologies, Zomato Media and BeiBei.
While many analysts are predicting a slight decrease in venture capital investment in the months ahead, we believe the strength of such fundamental growth drivers have created strong conditions for continued VC investment. Even with a possible slow- down, 2015 is shaping up to be a record year.
Read the complete report from KPMG International and CB Insights here!
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