Semi-annual 2014 Venture Capital Market Trends Report
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Venture capital (VC) activity is off to a notable start in 2014, with the total investment in the industry increasing to $22.7 billion in the first half of 2014 from $13.2 billion in the corresponding period in 2013. This indicates a jump of over 71 percent in 2014, compared to 2013. This marks the highest deal flow in the VC industry since the first half of 2001, when $24.5 billion dollars was invested.
The number of deals increased to 2,099 deals in the first half of the year, an increase of over 9 percent from last year. The number of deals in 2014 has been the highest since the first quarter of 2009. However, while deal flow has increased dramatically in 2014, the number of deals has increased by only 9 percent, compared to 2013. This indicates that the fund managers find it beneficial to consolidate the deals by making large investments in fewer deals in order to devote more attention to their portfolio companies and manage them efficiently. The average deal size has increased to $10.8 million in 2014 from $7.2 million in 2013, which is the highest since the first quarter of 2001.
Major industries that received VC funding so far in 2014 include life sciences (which comprises the biotechnology and medical devices and equipment sectors), software, information technology services, media and entertainment, and industrial and energy.
Further analysis and insights covered in the report include:
- New funds vs. follow-on funds
- Deal flow by industry
- Funding by stage of development, including seed, early, expansion and later
- First-time financing insights by industry and development stage
- Venture capital exits and the impact on IPOs and mergers and acquisitions
For more information, contact Hitesh Kothari, Director, RSM, at 212.372.1087.