Each quarter First Republic partners with Preqin, a leading source of fund performance data, to offer you an in-depth review of U.S. venture capital industry with coverage of fundraising, deal totals and exits, plus a detailed examination of the micro venture capital market. Here are some highlights from the findings:
- U.S. venture capital activity continued to be robust in 2019, overcoming general macro and micro concerns that surfaced during the second half of 2019.
- The aggregate value of venture capital deals for U.S.-based companies reached a new peak of $104 billion in 2019, despite an 18% decrease in the number of deals from 5,656 in 2018 to 4,637 deals in 2019.
- Early-stage investments (Series A and earlier) accounted for 52% of U.S. venture capital deals in 2019 and 18% of capital invested.
- Exits dropped slightly from 2018 totals; 592 exits were completed for a combined $78 billion, compared to 671 exits for $89 billion in 2018.
- Capital raised by U.S. funds reached $50 billion in 2019 which represented a small increase from 2018.
- At the start of 2020, a record 1,023 funds were in market, up 15% from the prior year. Over the past decade, the aggregate capital targeted by venture capital funds on the road grew almost sixfold from $34 billion in January 2010 to $98 billion at the start of 2020.
- U.S.-based micro venture capital funds ($100 million or less) had another record-breaking year in 2019, surpassing the $8.3 billion raised in 2018 with $8.4 billion secured through 282 fund closures.