Preqin‘s latest analysis of global venture capital investment activity shows that a total of $59bn has been invested in 5,272 deals globally in 2014 so far, compared to $37bn invested in 5,940 deals over the same period in 2013. While activity for the third quarter is below that of Q2 2014, the amount of capital invested is 45% higher than during the same quarter in 2013.
Venture Capital Investment: Other Key Facts
- 1,664 financings took place in Q3 2014 valued at an aggregate $19bn. This represents an 8% drop in the number of deals compared to the previous quarter, with a 16% decrease in aggregate value.
- The number of deals in North America is 6% lower in Q3 2014 compared to Q2 2014, with a 26% fall in aggregate value.
- There has been a 16% increase in deal flow in India, with 111 financings in Q3 2014 compared to 96 in Q2 2014.
- More deals took place in the telecoms sector (266) than the healthcare sector (233) in Q3 2014, the first time this has happened in any quarter.
- The two largest venture capital financing rounds in Q3 2014 were both in Asia – the $1bn investment in India-based Flipkart and the NZD615mn PIPE deal in China-based Beingmate Group Co., Ltd.
- The average deal value for Series D stage and later deals in Q1-Q3 2014, at $59mn, is 75% larger than the average in 2013 of $34mn.
- The Alibaba Group Holding Ltd (NYSE:BABA)’s $25bn IPO is the largest venture capital exit in Q3 2014, followed by the $1.7bn trade sale of Seragon Pharmaceuticals Inc.
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“Entrepreneurial companies worldwide have received a welcoming boost in 2014, with almost $60bn invested in young companies throughout the first three quarters of the year – 60% up on the amount invested during the same period last year. Asia in particular has seen a notable surge in activity, with investment levels across India and Greater China increasing significantly over the course of the year. The two largest venture capital deals of the quarter also took place in India and China. While the pace of new investments has slowed in 2014 compared to 2013, all stages of investment, with the exception of growth capital/expansion, have larger average deal sizes in 2014 so far than in 2013.”
Christopher Elvin, Head of Private Equity Products – Preqin