Venture Capital Report - Dow Jones & Company

Venture Capital Report

U.S.

|

3Q

|

2019

VENTURE CAPITAL REPORT

VENTURE CAPITAL REPORT

The following report presents Dow Jones VentureSource¡¯s quarterly findings for U.S. venture capital investment, fundraising, and liquidity. The

included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.

Highlights for 3Q 2019 include:

?

Equity investment retreated from recent highs, but still remained strong, with $27.53 billion invested in 1,295 deals.

?

The IPO market turned in another powerful performance with $6 billion raised this quarter, and 2019 has already set a new annual record.

?

M&A activity dipped modestly from the previous quarter, with $26.93 billion invested in 163 transactions.

?

VC fundraising dipped slightly from 2Q but remained at historically high levels, with $12.04 billion raised across 126 fund closings.

VENTURE CAPITAL REPORT

2

VC INVESTMENT PULLS BACK FROM RECENT

HIGHS, BUT REMAINS ROBUST

FINANCING

VC-backed startups received $27.53 billion in 1,295

rounds this quarter, a noticeable decline of 17% and

14%, respectively, from 2Q. While the amount raised

was the lowest in nearly two years, it¡¯s important to put

this figure in perspective: it qualified as the 9th largest

quarterly total on record, dating back to 1992. The

number of deals, however, was the smallest since 1Q

2014.

The top deal of the quarter went to San Francisco-based

OpenAI LP, which received corporate equity financing of

$1 billion from Microsoft.

Equity Financings in U.S.-Based,

VC-Backed Companies (2016¨C2019)

$50.00

1800

$45.00

1600

$40.00

1400

$35.00

1200

$30.00

1000

$25.00

800

$20.00

600

$15.00

$10.00

400

$5.00

200

$0.00

0

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Amount Raised ($B) $19.34 $14.86 $20.74 $22.04 $24.03 $22.70 $27.86 $30.23 $33.01 $44.70 $32.89 $33.10 $27.53

Number of Deals

1463 1328 1523 1577 1544 1419 1691 1692 1600 1532 1398 1504 1295

VENTURE CAPITAL REPORT

3

TOP ROUNDS FOR VC-BACKED COMPANIES

(3Q 2019)

FINANCING

Brief Description

Round Investors

(* denotes lead)

Corporate

$1,000.00

Equity

Microsoft Corp.

Location

OpenAI LP

San

Francisco, CA

Systems

Software

Software

Information

Technology

Radiology

Partners Inc.

El Segundo,

CA

Outpatient

Facilities

Healthcare

Services

Healthcare

Provider of

professional

7/19/2019

radiology services.

VC 4th

$700.00

Starr Investment Holdings LLC*

Knotel Inc.

New York, NY

Facilities/

Operations

Management

Business

Support

Services

Business

and

Financial

Services

Provider of flexible

8/21/2019

office space.

VC 3rd

$400.00

Wafra Inc.*; Rocket Internet AG; Norwest Venture

Partners; Newmark Knight Frank; Mori Trust Co.

Ltd.; Mercuria Investment Co. Ltd.; ITOCHU Corp.;

Bloomberg Beta

Urban Compass

New York, NY

Inc.

Shopping

Facilitators

Consumer

Information

Services

Consumer

Services

Provider of a real

estate purchase

7/30/2019

and rental

platform.

VC 8th

$370.00

SoftBank Vision Fund; Qatar Investment Authority;

Dragoneer Investment Group; Canada Pension

Plan Investment Board

Root Insurance

Co.

Insurance

Financial

Institutions and

Services

Business

and

Financial

Services

Provider of a car

insurance portal.

VC 5th

$350.00

Tiger Global Management LLC; Scale Venture

Partners; Ribbit Capital LP; Redpoint Ventures;

DST Global*; Drive Capital LLC; Coatue

Management LLC*

Columbus,

OH

Industry Code Industry Segment Industry Group

Close Date Round Type Raised ($M)

Company Name

Provider of

artificial

intelligence

research

principles.

7/22/2019

9/3/2019

VENTURE CAPITAL REPORT

4

IT & BUSINESS SERVICES COMPANIES SPLIT

LION¡¯S SHARE OF VC FUNDING IN 3Q

FINANCING

Business & Financial Services

IT companies once again grabbed the largest portion of VC deals

and dollars in 3Q, with $7.92 billion across 408 rounds. OpenAI had

the top deal in this sector (as well as the quarter overall), raising $1

billion.

299

Consumer Goods

408

Industry

Breakdown

By Number

of Deals

Consumer Services

86

Energy & Utilities

Healthcare

55

Companies in the Business & Financial Services group came in

second place, securing $7.08 billion in 299 deals. New York-based

Knotel Inc. took the largest round in this space, with a $400 million

3rd round to fund its flexible office space services.

184

242

Industrial Goods & Materials

15

Information Technology

Business & Financial Services

The Healthcare sector followed closely behind, raising $5.19 billion

across 242 deals. Radiology Partners Inc., an El Segundo-based

provider of professional radiology services delivered through a

technology-enabled national group practice, secured the top

financing in this sector.

Industry

Breakdown

By Amount

Raised ($B)

Consumer Goods

26%

29%

Consumer Services

Energy & Utilities

3%

4%

Healthcare

18%

19%

1%

Industrial Goods & Materials

Information Technology

VENTURE CAPITAL REPORT

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download