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VC Investment into U.S. Companies on Track for a Solid Year

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 microventure capital market. Here are some highlights from the findings:

  • Venture capital investment in U.S.-based companies got off to a strong start in 2019 and the trend of fewer, but larger deals continued. To note, there were 2,179 deals completed for a total value of $55 billion in H1, which represented a 17% increase in deal value, but a 20% drop in number of deals from H1 2018.
  • Early-stage investments (Series A and earlier stages) accounted for 51% of all deals but only 19% of total dollars raised by venture-backed companies.
  • So far in 2019 there have been 304 venture-capital-backed exits of U.S.-based companies, valued at an aggregate $47 billion.
  • Fundraising continues at a rapid pace, with nearly 200 new funds closing in H1 2019. Despite this activity, over 1,000 firms are in market fundraising seeking $95 billion in capital, an 8X increase from the same period in 2011.
  • We continue to observe a trend where fund managers are coming back to market earlier than expected, driven by quicker-than-anticipated deployment paces of funds, and firms raising preemptively, potentially as a defense to potential future macroeconomic disruption.
  • Coming off a record year for microventure capital, the growth of the institutional seed space continues, with $3.4 billion collected across 128 funds completed in H1 2019, which exceeds the aggregate number of funds and dollars raised by this category of funds from 2009–2012.

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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 July 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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