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Laxman Pai, Opalesque Asia: Deal activity declined in venture capital markets across the globe in Q1 2020 as the world comes to terms with the COVID-19 pandemic.
According to Preqin, nearly 1,000 fewer deals were completed globally in Q1 2020 compared with Q4 2019, while aggregate deal value fell by 18% in comparison.
The quarterly deal flow had remained steady throughout 2019, following a drop from 2018 levels, but the figures for the first quarter of 2020 represent a sharp decline.
The venture capital market in Greater China was hit the hardest. As the original epicenter of the COVID-19 outbreak, business activity was significantly disrupted at the start of the year.
The 495 deals completed for Greater China-based venture capital companies represent a drop of 39% from the previous quarter. That said, deal activity declined in all major venture capital markets across the globe.
Markets in North America (-27%) and Europe (-12%) recorded notable declines from the previous quarter in the number of completed deals.
Aggregate exit value remained steady in Q1. The $35bn of exits globally exceeds the previous two quarters, despite the number of exits falling by 8% in comparison with Q4 2019.
Two large exits of San Francisco-based fintech companies boosted total Q1 exit value: Intuit Inc.'s $7.1bn purchase of Credit Karma, Inc. - a financial platform that enables users to receive credit scores and reports - and Visa Inc.'s purchase of Plaid Inc. for $5.3...................... To view our full article Click here
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