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Alternative Market Briefing

US VC funding fell in 2019 in both Q3 and Q4, after a record-breaking Q2

Monday, January 20, 2020

Laxman Pai, Opalesque Asia:

US venture capital-backed companies raised $23bn in Q4'19, down 16% compared to Q3. YoY funding fell 9% to $108bn making 2019 the third biggest year ever (with 2018 in the first place; 2000 in second).

Mega-rounds ($100m+) played a role in this as they fell for the second-straight quarter. 38 companies raised rounds worth $100m or more in Q4'19. This is a sharp decline from 58 in Q3'19 and a record 67 in Q2'19, said the 'US MoneyTree Reporting' by PWC.

That said, 2019 saw the most $100m+ rounds ever (213), raising $47bn in 2019; the second biggest amount of mega-round funding.

US technology IPOs fall for the second-straight quarter, though YoY exits remain elevated: 20 US VC-backed tech companies exit in IPOs in Q4'19, compared to 22 in Q3'19.

YoY IPOs increase, with 90 technology companies exiting in IPOs in 2019, compared to 86 in 2018.

At the end of 2019, a record number of unicorn companies remain in the US: As of EoY 2019, there are 199 US VC-backed private companies valued at $1bn+; up significantly from 149 at the end of 2018.

Global deal activity, funding declined in the last quarter of 2019 on US trend.

North America, Asia, and Europe saw combined funding of $45bn in Q4'19. Global VC funding fell 16% in Q4'19 compared to Q3'19, said the report.

Asia and Europe saw increased deal activity, while North American deals fell.

Asia and Europe see increased deal activity, while North American dea......................

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