Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

COVID-19: With a total of 963 deals aggregating $27bn in Q1, 2020, US venture capital deals fell 19%

Thursday, May 14, 2020

Laxman Pai, Opalesque Asia:

Following a strong 2019, venture capital deal flow in the US slowed in Q1 2020 as COVID-19 introduced practical challenges for dealmakers, said a study.

A total of 963 deals were completed in the US for an aggregate $27bn in Q1 2020, a 19% decline from 1,191 deals in Q1 2019, said a study by Preqin and the First Republic.

"With social distancing and travel restrictions imposed across the US to contain the spread of COVID-19, many business meetings were canceled," the report pointed out. Despite the slowdown in activity, some large deals were still completed in Q1. The five largest transactions accounted for 23% ($6.1bn) of the aggregate value of venture capital deals in the quarter.

These included the $2.25bn financing round held by Waymo LLC, a developer of self-driving car technology which began as the Google Self-Driving Car Project in 2009.

Early-stage investments (Series A and earlier) accounted for half of all venture capital deals completed in the US in Q1 2020. Series B and Series D and later investments constituted the joint largest share (21%) of aggregate deal value among financing rounds.

Information technology was the most active industry for US-based venture capital investment in the quarter, representing 54% of all deals and 40% of total deal value.

Exit activity increases compared with the prior year

In Q1 2020, there were 147 venture capital-backed exits for US-based companies, valued at an aggreg......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1