Friday, July 26, 2013
Dow Jones VentureSource U.S. Quarterly Report - 2Q 2013
Dow Jones VentureSource’s quarterly findings for U.S. venture capital fundraising, investment, valuation, and liquidity.
Highlights for 2Q 2013 include:
*U.S. venture capital raised 4% more funds in the first half 2013 than in the first half of the previous year
*Venture capital investment saw its worst quarter since 1Q 2010
*Median pre-money valuation increased 27% from 1Q 2013 Initial public offerings (IPOs) doubled from the previous
Venture Fundraising Increases in U.S. during 2Q 2013
50 funds garnered $6.8 billion in 2Q 2013, a 4% decrease in number of funds, but a 48% increase in the amount raised from the prior quarter.
Insight Venture Partners VIII LP, the largest U.S. venture capital fund of the year, raised $2.6 billion, accounting for 38% of the total amount raised in 2Q 2013.
Median U.S. fund size was $150 million in the first half of 2013.
U.S. Venture Investment Fall Slows in 2Q 2013
U.S.-based companies raised $7.2 billion from 801 venture capital deals in 2Q 2013, a 2% decrease in capital and a 0.5% decrease in number of deals from the previous quarter.
Compared to the same period in 2012, a 16% decrease was registered in number of deals, while amount raised went down 19%.
With the exception of Healthcare and Consumer Goods that experienced a drop of 8% and 80% respectively, all others sectors saw an increase in amount raised.
Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (2Q 2013)
Information Technology (IT) saw the largest investment allocation, with 238 deals garnering $2.1 billion and accounting for 29% of total equity investment.
Healthcare followed with $1.9 billion in 168 closed deals, a decrease of 8% in amount invested and 3% drop in number of deals compared to the previous quarter.
Business and Financial Services increased quarter over quarter, with $1.3 billion invested in 169 deals – a 10% and 16% rise in dollars and deals, respectively, compared to 1Q 2013.
Investment in Consumer Services registered both the highest quarter over quarter increase in capital invested and number of deals: 40% and 20%, respectively.