According to venture capital reports provided by KPMG and CB Insights, the total amount of venture investments for the three-quarters of 2015 has already outrun the amounts of venture investments for 2014. Moreover, there is a clear growing trend, which promises to bring even more VC deals in the nearest future. For now there have been 1799 venture deals made all over the world, with more than $37 bln of funding given to newly created ventures, while the year is not over yet. Here is some key features of capital market development in the three-quarters of 2015.
- Unicorns still appear and expand in number.
As of the third quarter in 2015, there have been noticed 23 new private companies with billions of dollars in value. In comparison, Q3 in 2014 came up with only 12 unicorns. The leading region producing unicorns is still North America, 17 of the billion-dollar projects originate in the US, and only 3 – in Asia.
- Deal amounts continue to rise
Most of the 2015 venture capital deals involved relatively large sums of money. The average amount of late-stage investments hit $35 mln while the biggest deal of Q3 was made by a Chinese startup named Didi Kaudi: this online taxi service managed to raise $3 bln of venture capital. Early-stage deals are also characterized by large amounts with a global median of $2.5 mln.
- Regional trends: compare North America, Asia, and Europe. Although the US remains the leader of all the investments made, with the largest share of startup funding, its growth rate of venture capital activity starts to fall. Still, $57.9 bln has been invested in American startups as of Q3 2015, compared to $56.5 bln in 2014. It is worth mentioning the falling number of seed deals among US companies.
Asia has demonstrated an impressive growth in funding. Compared to $6.5 bln of investments in VC-backed enterprises in 2013, by the third quarter of 2015 this number has risen up to $28.4 bln. Most of these great deals were made by fin-tech companies, on-demand transportation services, and e-commerce industry. At the same time, Asian investment trends can be still considered quite conservative, since the level of interest rates is relatively low, despite the open willingness of VC investors to spend money.
Europe leads the global capital markets in terms of seed investments, which comprise 40% of all deals. However, later stage deals are the fewest in comparison with North America and Asia. On the whole, there have been a number of megadeals in Europe, including BlaBlaBlaCar’s acquisition of $200 mln funds after D round.
To give you a final comparative image of the regions as for the third quarter of 2015 in terms of large VC deals: North America produced 36 mega-deals, Asia – 25, Europe – 6.
It seems like despite all current problems in world economies the appetite for investment into fast-growing private startup companies remains insatiable. In fear of missing some profits, investors continue participating in large financing deals involving certain risks.
You may sign up our monthly newsletter to receive updates or news from our team.