PitchBook, a Venture Capital, Private Equity and M&A Database, delivers data, research and technology covering private capital markets. A recent report by PitchBook and National Venture Capital Association, an organization dedicated to professionally invest private capital in new companies, shows that more money is being spread across fewer deals in 2018.
One of the key highlights from the report is that venture capital is likely to top $100 billion in 2018. This is primarily due to the 143 massive deals over $100 million that are becoming more common. Additionally, there have been 378 reported funding rounds so far this year of at least $50 million, while last year this number totaled to 292 deals. Fundraising has remained a hot topic this year with over $30 billion raised for the fifth year in a row. The volume of deals is also increasing, with the US likely to close 300 funds for the first time since 2006.
Austin has slowed in venture capital funding this quarter. Q1 2018 saw $450.3M over 58 deals, Q2 with 62 deals totaling $414M, and the 3rd quarter saw 45 deals totaling $225.9M, a drastic drop following two highly funded quarters. To put this in perspective, at this time in 2017 232 Austin deals were closed; currently, we are at 163 venture capital deals. This is not something unique to Austin, however, both San Diego and Washington DC have reported fewer funding deals, and Austin is just 6 deals below that of Chicago.
Pitchbook. (2018, October 8). PitchBook-NVCA Venture Monitor. Retrieved from https://pitchbook.com/news/reports/3q-2018-pitchbook-nvca-venture-monitor?utm_campaign=3q-2018-pitchbook-nvca-venture-monitor&utm_medium=nl-na&utm_source=reports
Wistrom, B. (2018, October 9). Austin Venture Capital Flow Slows in Q3 as U.S. is Poised for a $100 Billion Year. Retrieved from https://www.americaninno.com/austin/funding/austin-venture-capital-flow-slows-in-q3-as-u-s-is-poised-for-a-100-billion-year/?mc_cid=829c21e7ad&mc_eid=52e52af8d2