Venture capital (VC) deal volume continued to fall in Q1 2017 with only 2,716 deals completed globally during the period compared to 3,201 in Q4’16, according to the latest ‘Venture Pulse’ KPMG report.
Despite the fourth straight quarter of declining deal activity, VC investment grew to $26.8bn in the first quarter of the year. The increase in funding was strongly affected by a resurgence in mega-deals, including Airbnb’s $1bn + Series F round, and Grail’s $914m Series B tranche.
Globally, the Americas led VC investment, accounting for $17.8bn. The US made up the lion’s share, with $17.3bn invested. In Asia, VC investment grew slightly quarter over quarter to $5.6bn, while in Europe investment remained relatively flat at $3.4bn.
The report also uncovered the following trends:
• Global VC investment rose from $23.8bn in Q4 2016 to $26.8 billion in Q1 2017, a solid increase buoyed by a number of $100m + mega deals.
• Global median deal size at early VC financing stages continued to increase, with median Series B funding hitting $14m, Series A $5.7m, and seed stage $1.4m.
• Pharmaceuticals and biotechnology saw an explosion in the percentage of overall VC investment in Q1’17, with companies raising $3.9bn during the quarter across 188 financings, compared to the $11.4bn raised throughout 2016.
• The number of deals with corporate venture participation slid for 2 consecutive quarters but given the overall decline in venture financing volume, the percentage of overall financings in which they’ve participated hit its highest level since early 2007.
• After reaching a 12 quarter low in Q4 2016, the number of global unicorn financings rose slightly in Q1 2017 to 14.
• California-based companies (i.e. Airbnb, Grail, SoFi, and Instacart), and China-based companies (i.e. NIO, Ofo, Hive Box Technology and Kuaishou Technology) dominated the top 10 global VC deals rankings during the quarter. Ola in Bangalore, India and Mobike in Singapore rounded out the list.