Saturday, February 1, 2014
DJX VentureSource U.S. Venture Capital Report for 4Q 2013,
U.S. Venture Investment on the Rise in 4Q 2013
U.S.-based companies raised $8.9 billion from 901 venture capital deals in 4Q 2013, an increase both in capital (2%) and in number of deals (5%) from the previous quarter.
Compared to the same period in 2012, both number of deals and amount invested registered an increase, 3%
and 7% respectively.
Business and Financial Services and Healthcare are the strongest sectors, each having a 26% share of total
In 2013, 3480 deals have been completed raising $33 billion, a respective 5% decrease and 1% increase on
figures posted in 2012.
Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (4Q 2013)
Business and Financial Services saw the largest investment allocation, with 207 deals garnering $2.3 billion and accounting for 26% of total equity investment.
The Healthcare sector raised the second highest proportion of investment for 4Q’13. Healthcare companies
drew $2.3 billion across 188 deals, up 20% and 11% from respective 3Q’13 figures.
Information Technology (IT) placed third with $1.7 billion in 248 deals, dropping significantly from the $2.4 billion accumulated in the previous quarter. The sector’s investment figure represents a 19% share of total equity investment into U.S. VC-backed companies for the quarter.
$1.6 billion were raised by Consumer Services in 177 deals, an increase of 9% in deal flow, while capital invested went up by 3%.
U.S. VC-backed M&As (2011-2013)
U.S. venture capital acquisition activity still on the rise in the fourth quarter of 2013, ending with the highest number of exits for 2013.
115 M&As raised almost $12 billion during 4Q 2013, a 17% increase in M&A valuations despite the number of deals only increasing 1% compared to the previous quarter, when 114 M&As garnered $10.2 billion.
The largest M&A of the quarter was The Climate Corp., which was acquired by Monsanto Co. (NYSE: MON) for
U.S. VC-backed IPOs (2011-2013)
20 venture-backed companies raised $3.6 billion through public offerings in 4Q 2013. Number of deals
decreased by 20%, while capital raised registered a 60% increase from the previous quarter.
The largest IPO of the quarter was Twitter Inc. (NYSE: TWTR), which completed a $1.8 billion IPO.