Preqin Research shows that the aggregate value of global VC investment in Q1 2014 was $15.6bn, the highest amount for any quarterly period since 2008.

In Q1 2014, there were 1,402 venture capital financings globally with an aggregate value of $15.6bn, representing the highest quarterly value since the financial crisis in 2008. This surpasses the previous high of $14.9bn in Q2 2011 and is a significant increase from $10.0bn for the first quarter of 2013. However, the number of global VC investment has fallen consistently over recent quarters, dropping from 1,724 deals in Q2 2013 to 1,402 in Q1 2014. As a result, the average size of global VC investment has increased from $7.0mn in Q2 2013 to $11.1mn in the first quarter of 2014.

Global VC Investment

Global VC Investment: Other Key Facts:

  • North America witnessed an increase in the aggregate value of venture capital financings in Q1 2014 at $10.6bn, compared to $8.6bn the previous quarter.
  • Greater China also saw an increase in the aggregate value of deals from $800mn in Q4 2013 to $2.0bn in Q1 2014 as a result of several large financings.
  • Both the number and value of European venture deals dropped in Q1 2014 compared to the previous quarter. 313 venture capital deals were announced in Europe valued at $2.0bn, compared to 330 deals valued at $3.4bn in Q4 2013.
  • Angel/seed deals remain the most abundant investment stage for the quarter, accounting for 19% of deals in Q1 2014, with 16% being series A, and growth capital/expansion deals representing 5%.
  • The average angel/seed financing round so far in 2014 is $1.4mn, the highest figures since 2008 and the first time this figure has exceeded $1.1mn since 2008.
  • The highest number of deals continues to come from the internet sector, accounting for 27% of the number of deals in Q1 2014. This quarter, internet deals also accounted for the highest value of all venture capital deals of any sector at 30%, up from 24% in Q4 2013, surpassing software and related deals.

Global VC Investment

For more information and analysis, please see the following fact sheet

Comment:

“A welcome boost for entrepreneurs and small companies worldwide has come at the start of 2014, as venture capital investment is at its highest level since the financial crisis. A total of $15.6bn was invested into venture capital opportunities during the first quarter of 2014, higher than any other quarter since the start of 2008. While this will be welcome to firms that have received funding, it has come at a cost: far fewer companies acquired investment.

Even though the majority of investment was in North American companies, there seems to be a rejuvenation of the Chinese venture capital industry, with $2.0bn worth of deals being announced, almost topping the $2.3bn which was invested in the whole of 2013.”