Overall US Deal Activity Increased 9%
Asia funding continues to rise, with 10% increase from Q1’18
NEW YORK, July 12, 2018 – As global deal activity continues to rise, the second quarter of 2018 saw in an increase in funding to VC-backed companies based in the United States and generated $23B in funding, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and CB Insights.
The United States recorded its third consecutive quarter with over 30 mega-round activity of $100M or more, resulting in 45 mega-rounds in Q2’18 and continuing the trend of larger deals. However, mega-rounds declined as a percentage of total VC funding to 34%, the second straight quarterly decline. The overall deal activity among VC-backed companies in the US increased by 9%.
Deal activity looks to be resurgent with $23B invested in VC-backed startups setting a new quarterly funding high since the start of this century, while also increasing activity to over 1,400 deals. Additionally, 2018's mega-rounds are currently on pace to beat what was an unprecedented 2017 -- which posted 111 mega-rounds."
Regionally, in the United States, San Francisco generated the most number of deals (271 deals), while Silicon Valley (South Bay) decreased in deal activity (166 deals). However, San Francisco saw a 14% decrease in funding between Q1’18 and Q2’18, dropping to $5.6B. Deal activity in New York increased quarter-over-quarter (193 deals), while funding remained flat.
As global investment activity continued to increase, Asia saw an explosive growth of mega-rounds, unicorn births, and deals during Q2’18. During this quarter, there were 5 new unicorns, as well as a 36% increase in deal activity in Asia alone. Additionally, total quarterly funding to Asia-based companies increased by 10%.
“Global deal activity remained strong with venture investment into Asian companies being particularly robust (funding grew 10% from Q1 to Q2). Asia is seeing lots of local and cross-border investment, and we expect this continue,” said Anand Sanwal, CEO and co-founder of CB Insights. “The growth in mega-deals (those over $100M) also highlights the immense amounts of capital that is pouring into the private company market.”
Key Q1 2018 highlights:
MoneyTree Report results are available online at www.pwcmoneytree.com.
CB Insights research can be found online here.
About PwC US
At PwC US, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com/US.
©2018 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
About CB Insights
CB Insights is a Pilot Growth and National Science Foundation backed software-as-a-service company that uses data science, machine learning and predictive analytics to help our customers predict what’s next—their next investment, the next market they should attack, the next move of their competitor, their next customer, or the next company they should acquire. The world’s leading global corporations including the likes of Cisco, Salesforce, Castrol and Gartner as well as top-tier VCs including NEA, Upfront Ventures, RRE, and FirstMark Capital rely on CB Insights to make decisions based on data, not decibels.
Industrial Products (Auto, Manufacturing, Mobility, Engineering & Construction, Aerospace & Defense) Houston, Dallas, San Antonio, Austin, New Orleans, San Francisco, San Jose, Seattle, Portland, PwC US
Tel: +1 (213) 392 9684