Preqin’s latest analysis of global venture capital investment activity has shown that the average value of Series D and later stage deals that occurred in H1 2014 was $64.1mn, a significant increase on the average size of late stage deals done in 2013, which stood at $34.4mn.

 venture capital deals

The aggregate value of venture capital deals that took place in Q2 2014 was up 27% on the aggregate value of Q1 2014 deals, yet the number of venture capital financings was 1% lower. All stages of investment have increased in terms of average deal value for 2014 in comparison to 2013, except for growth capital/expansion rounds which have fallen from $18.3mn on average to $15.9mn.

 venture capital deals

Venture Capital Deals: Other Key Facts

  • 1,563 venture capital financings took place over the last quarter, compared to 1,577 in Q1 2014 and 1,896 during Q2 2013.
  • $21.5bn was invested in venture capital opportunities in Q2 2014, up 71% on the $12.6bn invested during Q2 2013.
  • Deal flow in North America has fallen 2% from Q1 2014 to Q2 2014, with a 24% rise in value.
  • In Europe, 334 deals took place in Q2 2014 valued at $2.6bn, representing a 1% drop in deal flow, but a 27% increase in value from the previous quarter.
  • There has been a 23% increase in deal flow in India, rising from 75 financings in Q1 2014 to 92 in Q2 2014.
  • The average angel/seed financing round so far in 2014 is $1.3mn, the highest average value since 2007.
  • The highest proportion of deals continues to take place in the internet sector, accounting for 23% of the number of deals in Q2 2014. This quarter, internet deals also accounted for the highest value of all venture capital deals of any sector at 30%, up from 23% in Q4 2013, surpassing software and related deals.

 venture capital deals

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

Comment:

“Companies towards the end of the venture capital financing cycle have received far larger investments on average over the first half of this year compared to recent years. In fact, all venture capital financing stages except growth stage/expansion have seen higher average values in H1 2014, as firms invested over $38bn in companies over the first two quarters of the year. Even though specific countries and regions, such as India, have seen a notable uptick in deals being made, the general trend across the world is that of static numbers of deals taking place over recent quarters. With fewer companies receiving larger financing rounds on average, it may be very competitive for many young, innovative companies, as well as more established firms, to secure valuable funding going forward.”

Christopher Elvin, Head of Private Equity Products – Preqin

Note to Editors:

Preqin is spelled without the letter ‘U’ after the ‘Q’, the company name being an amalgamation of the former name, Private Equity Intelligence.