United States

Venture capital deal flow slowing, but capital invested on a high

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Venture capital activity in the U.S. has slowed, with 2015 on pace to see about as many investments as 2012, which would mark an end to five consecutive years of increasing activity. However, with $36.8 billion already doled out to U.S. startups this year, it will by no means be a slow year for capital invested. Should this pace hold, 2015 may end up challenging the $65.2 billion invested last year, a post-2000 high.

According to RSM’s Hitesh Kothari, investment sizes are going up while the total number of deals is going down because venture capital investors prefer to consolidate their deals and invest in growing, expansion stage companies. Investors’ perspectives have shifted in the last few years and there’s more redeployment of their funds in these kinds of companies because they have less of a gestation period in terms of exit.

With data powered by PitchBook and a Q&A with Kothari, the 3Q 2015 Venture Industry Report examines U.S. venture capital activity in the second quarter of 2015. The report offers an array of insights into the current U.S. venture capital landscape, including deal flow analysis, exit activity and valuation trends.

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