16 US and 13 Asian Companies Reached Unicorn Status in Q3
Asia Funding Drops Off, Decreasing 11%
NEW YORK, October 9, 2018 – During the third quarter of 2018, VC-backed companies based in the United States saw a 17% increase in funding, bringing up the total dollar amount invested to $28B, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and CB Insights.
Globally, Q3’18 generated record levels of mega round activity of $100M or more, birthing 16 new unicorns in the United States and 13 in Asia. Specifically, US private companies raised 6 $500M+ and 55 $100M+ VC rounds, the most of any quarter on record.
“This quarter approached quarterly funding records, with $27.5B invested in VC-backed startups and 55 mega-rounds. On the other hand, VC-backed deal volume is down to a level unseen since Q4 of 2012. As early-stage startups wonder if there are adequate funds available, the overall deal volume (1,229) still reflects a healthy startup ecosystem.”
Regionally, in the United States, New York spiked up after multiple flat quarters, rising 110% in Q3’18 to $5.8B, compared to $2.7B in Q2’18. However, San Francisco continued to take the lead in terms of deal share, generating $7.9B across 229 deals. Similarly, Silicon Valley (South Bay) saw an increase in funding by 24% compared to Q2’18, hitting $4.8B in Q3’18.
Global funding activity increased slightly during Q3’18, increasing by 2% to $53.1B across 3,408 deals. Notably, funding to Asian companies dropped by 11% to $19.3B in Q3’18, amid rising VC funding globally. Early-stage deal sizes declined across all regions, as later-stage funding drove funding to record levels. During this quarter, later-stage deal size for Asian companies rose for the second quarter in a row to $100M.
“The unicorn birth rate picked up in Q3’18 with 16 US startups and 13 Asian companies seeing valuations rise above $1 billion dollars. Mega-rounds (those over $100M) also reached record levels in the US as money rushed into mid- and later-stage companies,” said Anand Sanwal, CEO and co-founder of CB Insights. “The casualty of this rush has been the seed stage, which saw a global decline. The migration out of seed won't be felt now, but it will have impacts on the venture ecosystem in the coming years."
Key Q3 2018 highlights:
MoneyTree Report results are available online at www.pwcmoneytree.com.
CB Insights research can be found online here.
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