The corporate venture capital fund officially arrived in 2019. Investors put $18.3 billion into female-founded startups across 2,184 deals, up from $16.9 billion and 2,057 deals in 2018, according to the report. It was a record year for female-founded startups seeking funding, with the number and value of deals involving companies started by women trickling higher. They pulled in a total of $43.5 billion, up six times from $7.3 billion a decade ago.Īlthough there's more money plunging into software startups, the number of those type deals fell from 4,141 in 2018. Last year logged almost 3,900 deals involving software startups. ![]() "Today, more than 90% of unicorns have already raised at least $100 million in a single private financing," he wrote. In the past, a venture-backed company would raise $100 million in financing on average ahead of going public at a valuation of $100 million, said Greg Becker, chief executive of Silicon Valley Bank, which also sponsored the report. The startups making their public markets debut in 2019 are much better funded than their predecessors. They are able to make more informed decisions because late-stage companies can raise money based on their battle-tested business models. It's a marker of investor interest in these types of deals. The number of late-stage deals reached a new record in 2019, topping 2,500 for the first time with a total of 2,597 deals. The venture funds focused on this sector raised $10.7 billion last year, setting a new high for the third year in a row. There's more money available to startups in the healthcare sector. The amount of money invested in startups on the West Coast slipped to 50% of the nationwide total in 2019 from 62% in 2018, while venture spending went up at least one percentage point in the Mountain, Southern, and Mid-Atlantic regions. In 2019, the San Francisco Bay Area posted its lowest proportion of overall venture investments since 2013. The nation's tech capital lost some of its share of venture deals to other emerging metropolises. Young startups gobbled up cash in the pursuit of growth without revenues, though this approach has come under fire from investors in recent months as more startups suffer layoffs. Those outsized transactions known as mega-rounds accounted for almost 25% of the capital put into early-stage deals in 2019. The startups that delay are more mature when they go to fundraise, and are able to command bigger deals and valuations, according to the report. Also, founders can raise money from other sources, such as crowdfunding or debt financing. PitchBook's report identified two reasons for this: The cost of starting a business has shrunk because of the availability of software services and cloud computing. In 2019, the median age of companies raising angel or seed funding was 2.9 years, continuing a steady rise from the 1.5 years median age in 2012. Startups are waiting longer to take outside capital. ![]() These super-sized deals are becoming more common - and were up almost 12% from 2018 - as tech investors raise bigger and bigger funds to compete for access to the fastest-growing startups. Last year there were 273 "mega-rounds," that is, a fundraising event where a company pulled in more than $100 million. ![]() PitchBook and the National Venture Capital Association credit this uptick to the "larger deals that have closed at every stage and in almost every sector." 273 mega-rounds The number of deals, however, crept higher to 10,777 in 2019 from 10,542 in 2018. ![]() Investors plugged $136.5 billion into venture-backed companies in the US last year, down slightly from 2018. There was no stopping the avalanche of capital plowing into startups in 2019. Whether they are surpassed once again in the next 12 months or stand as the high-water mark will be one of the big stories to watch in the VC industry. Here are some of the key metrics from 2019. The arrival of SoftBank and its $100 billion Vision Fund has super-charged the funding climate.īut even aside from SoftBank, last year contained several important milestones and developments for venture capital funds and startups. It's no secret that there's a lot of money pouring into the tech startup scene these days.
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