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U.S. Venture Capital Maintains Momentum into 2019

Prequin Q1 2019

Following a record 2018, venture capital activity in the U.S. is off to a robust start in 2019 as 1,026 deals were completed in Q1 2019 for an aggregate $28 billion, up from $19.4 billion in Q1 2018. Continuing the trend of mega-rounds, the top five deals of the quarter accounted for $6.2 billion or 22% of the total amount of venture capital invested.

Some of this quarter’s highlights include:

  • Early-stage investments (Series A and earlier) accounted for 49% of venture capital deals in Q1 2019 and 20% of capital invested, and Series B investments accounted for 23% of capital invested. Software was the most active industry for U.S.-based venture capital investment, representing 36% of deals and 28% of deal value. 

  • As of the end of Q1 2019, there were 129 exits valued at an aggregate $17.7 billion, led by exits for Lyft, Auris Health and SendGrid. Ten venture-backed companies went public in Q1 2019, and with the IPO window appearing open, many more venture-backed companies are expected to file in 2019.  

  • A record 405 U.S.-based venture capital funds closed in 2018, raising $46 billion. Based on Q1 2019’s fundraising statistics, 2019 is expected to be an equally strong year, with 96 funds bringing in an aggregate $12 billion so far.

  • In the first quarter of 2019 alone, 64 micro venture capital funds held a final close, surpassing the total number of micro venture capital funds raised in 2009. In 2018, 63% of the micro funds closed had managers with prior institutional investing experience, and in Q1 2019 that figure is up to 72%. 

  • The 10 largest U.S.-based venture capital fund managers have raised $73 billion over the past 10 years. Although the top 10 U.S. fund managers cover a range of investment stages, only Sequoia Capital and Bessemer Venture Partners have seed stage-focused funds.

Preqin partnered with First Republic Bank to prepare this information regarding US 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 April 2019 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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