Fri, Oct 23, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Venture Capital rebounds in Q3 as dealflow and valuations increase

Wednesday, October 14, 2020

Bailey McCann, Opalesque New York:

Despite the pandemic slowing down other parts of the private equity universe, new data from PitchBook and NVCA shows that dealflow in venture capital remained strong in Q3. The $37.8 billion invested in Q3 was relatively on par with Q3 2019, thanks largely to late-stage investments. VCs are also managing the shift to remote work more successfully than other GPs.

223 deals $100 million and above closed through the first nine months of 2020, putting the year on pace to set a new record for VC mega-deal count, according to the report. This trend has been accelerated by the pandemic as investors prefer higher quality businesses during times of volatility. Larger funds have also had more success. Through Q3, US VC firms have raised a total of $56.6 billion across 228 funds, exceeding 2019's yearly fundraising value of $54.9 billion.

In tandem with deal sizes, valuations at the late stage continued to soar relative to 2019 through Q3 2020. The median and average pre-money valuations now sit at $90.0 million and $672.3 million, respectively.

IPO window reopens

The robust investment environment for startups alongside the rapid rise of SPACs has reopened the IPO window. Exits were the hardest hit segment of the VC ecosystem over the first six months of the year, but all that changed in Q3. There were 13 IPOs at a $1 billion+ valuation in Q3, which is more than the total number of VC-backed IPOs in Q1 2020.

Early sta......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Coronavirus triggers borrowing spree by private equity managers, Venture capital investments reach new high in Brazil, Private-equity giants are racing to sell assets before year-end[more]

    Coronavirus triggers borrowing spree by private equity managers From FT: Private equity managers are turning to specialist borrowing facilities to ensure their highly leveraged strategies can survive the coronavirus pandemic, but there are growing concerns that the use of these complex f

  2. What's behind Viking's strong gains[more]

    From Institutional Investor: Viking Global Investors had strong performance in its three main funds in the third quarter, bringing gains for the year into the mid-to-upper teens. The Tiger Cub hedge fund firm, co-founded by O. Andreas Halvorsen, is far outperforming the broad-market averages a

  3. PE/VC: A record number of private equity funds are in the market - but closing them won't be easy, PE firms must be prepared to face challenges across each fund vintage, Wall Street is helping private equity recycle its old assets[more]

    A record number of private equity funds are in the market - but closing them won't be easy From Institutional Investor: Although there are a record number of private equity funds in the market, they are raising money at a slower pace, delaying fund closes, according to new data from Pre

  4. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol

  5. Opalesque Exclusive: A.W. Jones emerging manager fund of funds passes three year milestone, up +12.61% through August[more]

    Bailey McCann, Opalesque New York for New Managers: An emerging manager fund of funds from A.W. Jones has just passed its three-year milestone and is outperforming so far this year. The fund was up 3.29% in August a