The following report presents Dow Jones VentureSource’s quarterly findings for U.S.
venture capital fundraising, investment, valuation, and liquidity. Charts and
graphs available here offer a comprehensive view of the trends currently affecting the venture capital
market.
Highlights for 4Q 2014 include:
U.S. venture capital fundraising rose both in number of funds and amount invested;
Venture capital investment into U.S. companies experienced a quarter-over-quarter increase; Median pre-money valuation increased 30% from 3Q 2014 and more than doubled the 2013 value;
Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As) experienced an increase from the previous quarter.
Highlights for 4Q 2014 include:
U.S. venture capital fundraising rose both in number of funds and amount invested;
Venture capital investment into U.S. companies experienced a quarter-over-quarter increase; Median pre-money valuation increased 30% from 3Q 2014 and more than doubled the 2013 value;
Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As) experienced an increase from the previous quarter.
FUNDRAISING
Venture Fundraising Increases in U.S. during 4Q 2014
85 funds garnered $8.1 billion in 4Q 2014, a 25% increase in the amount raised and also a 4% rise in number of funds from the prior quarter.
Venture capital funds have raised a total of almost $33 billion across 332 funds in 2014, up 62% from the total amount raised in 2013 and 27% in number of funds.
Tiger Global Private Investment Partners IX LP was the largest U.S. venture capital fund of 4Q 2014 raising $2.5 billion and accounting for 31% of the total amount raised during the quarter.
Median U.S. fund size was $110 million in 2014.
85 funds garnered $8.1 billion in 4Q 2014, a 25% increase in the amount raised and also a 4% rise in number of funds from the prior quarter.
Venture capital funds have raised a total of almost $33 billion across 332 funds in 2014, up 62% from the total amount raised in 2013 and 27% in number of funds.
Tiger Global Private Investment Partners IX LP was the largest U.S. venture capital fund of 4Q 2014 raising $2.5 billion and accounting for 31% of the total amount raised during the quarter.
Median U.S. fund size was $110 million in 2014.
FINANCING
U.S. Venture Investment on the Rise in 4Q 2014
U.S.-based companies raised $13.8 billion from 814 venture capital deals in 4Q 2014, an increase in capital (24%) despite deal flow dropping 12% from the previous quarter.
Compared to the same period in 2013, number of deals decreased 20%, while amount invested registered a 44% increase.
In 2014, 3682 deals have been completed raising $52 billion, a respective 4% decrease and 47% increase on figures posted in 2013.
U.S.-based companies raised $13.8 billion from 814 venture capital deals in 4Q 2014, an increase in capital (24%) despite deal flow dropping 12% from the previous quarter.
Compared to the same period in 2013, number of deals decreased 20%, while amount invested registered a 44% increase.
In 2014, 3682 deals have been completed raising $52 billion, a respective 4% decrease and 47% increase on figures posted in 2013.
Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (4Q 2014)
Consumer Services saw the largest investment allocation, with 159 deals garnering almost $3.8 billion and accounting for 27% of total equity investment.
Information Technology (IT) raised the second highest proportion of investment for 4Q’14. IT companies drew $3.3 billion across 245 deals, up 52% and 13% from respective 3Q’14 figures.
Business and Financial Services placed third with $3.2 billion in 206 deals, increasing 4% from the $3.1 billion accumulated in the previous quarter, despite a 23% drop in number of deals.
$2.5 billion were raised by the Healthcare sector in 143 deals, down both in capital invested and deal flow (8% and 23%, respectively).
In 2014 as a whole, Business and Financial Services took a 26% share of investment ($13.7 billion), IT a 24% ($12.3 billion), Consumer Services a 23% ($11.9 billion), and Healthcare a 21% ($11 billion).
Consumer Services saw the largest investment allocation, with 159 deals garnering almost $3.8 billion and accounting for 27% of total equity investment.
Information Technology (IT) raised the second highest proportion of investment for 4Q’14. IT companies drew $3.3 billion across 245 deals, up 52% and 13% from respective 3Q’14 figures.
Business and Financial Services placed third with $3.2 billion in 206 deals, increasing 4% from the $3.1 billion accumulated in the previous quarter, despite a 23% drop in number of deals.
$2.5 billion were raised by the Healthcare sector in 143 deals, down both in capital invested and deal flow (8% and 23%, respectively).
In 2014 as a whole, Business and Financial Services took a 26% share of investment ($13.7 billion), IT a 24% ($12.3 billion), Consumer Services a 23% ($11.9 billion), and Healthcare a 21% ($11 billion).
LIQUIDITY
Venture M&A and IPO Market Activity in the U.S. during 4Q 2014
Mergers and acquisitions (M&As) of venture-backed companies increased by 60% from 3Q 2014, with 102 deals garnering $32 billion.
Initial public offering (IPO) activity increased in 4Q 2014 raising $3 billion, up 134% from the previous quarter.
Mergers and acquisitions (M&As) of venture-backed companies increased by 60% from 3Q 2014, with 102 deals garnering $32 billion.
Initial public offering (IPO) activity increased in 4Q 2014 raising $3 billion, up 134% from the previous quarter.
U.S. VC-backed M&As (2011-2014)
102 M&As raised $32 billion during 4Q 2014, a 60% increase in M&A valuations despite the number of deals decreasing 23% compared to the previous quarter, when 132 M&As garnered $20 billion.
The largest M&A of the quarter was WhatsApp Inc., which was acquired by Facebook (NASDAQ: FB) for $19 billion.
483 M&As were completed for venture-backed companies in the U.S. during 2014, up 8% from the 449 completed during 2013 and 2% from the 473 seen during 2012.
102 M&As raised $32 billion during 4Q 2014, a 60% increase in M&A valuations despite the number of deals decreasing 23% compared to the previous quarter, when 132 M&As garnered $20 billion.
The largest M&A of the quarter was WhatsApp Inc., which was acquired by Facebook (NASDAQ: FB) for $19 billion.
483 M&As were completed for venture-backed companies in the U.S. during 2014, up 8% from the 449 completed during 2013 and 2% from the 473 seen during 2012.
U.S. VC-backed IPOs (2011-2014)
21 venture-backed companies raised $3 billion through public offerings in 4Q 2014. Number of listings decreased by 5%, while capital raised more than doubled the amount from the previous quarter.
The largest IPO of the quarter was LendingClub Corp. (NYSE: LC), which completed a $870 million IPO.
2014 saw the highest number of US VC-backed IPOs since 2000, when 210 were completed. During 2014,105 companies garnered a total of $9.2 billion, an increase of 42% and 12% from respective 2013 figures.
21 venture-backed companies raised $3 billion through public offerings in 4Q 2014. Number of listings decreased by 5%, while capital raised more than doubled the amount from the previous quarter.
The largest IPO of the quarter was LendingClub Corp. (NYSE: LC), which completed a $870 million IPO.
2014 saw the highest number of US VC-backed IPOs since 2000, when 210 were completed. During 2014,105 companies garnered a total of $9.2 billion, an increase of 42% and 12% from respective 2013 figures.
This is my very first time that I am visiting here and I’m truly pleasurable to see everything at one place.shailendra singh sequoia india
ReplyDelete