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U.S. Venture Capital Activity Robust Throughout 2019

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.

Preqin partnered with First Republic Bank to prepare this information regarding U.S. venture capital. This report is for information purposes only and is not intended as an offer, solicitation, advice (investment, legal, tax or otherwise), or as the basis for any contract. First Republic Bank has not independently verified the information contained herein and shall not have liability to any third party in any respect for this report or any actions taken or decisions made based upon anything contained herein. This information is valid only as of January 2020 and neither Preqin nor First Republic Bank will undertake to update this report with regard to changes in market conditions, information, laws or regulations after the date of this report. This report may not be further reproduced or circulated without the written permission of Preqin and First Republic Bank.

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