Key Startup Funding Statistics
Although Q2 2015 Venture Capital deal volume is less than Q2 2014, total capital invested has increased significantly. Both deal volume and total capital invested increased from Q1 to Q2 2015.
Q2 2015 Venture Capital deal volume was up 18% from Q1 2015, but the number of deals is down 39% from Q2 2014. Number of deals in Q2 2015 peaked in mid May with a high of 34 deals in a day.
Total capital invested was up 9% from Q1 2015 and reached an all time high for the year at $17.1 billion. This is a 14% increase in total venture dollars invested compared to Q2 2014.
There were three startups that raised multiple rounds in Q2. For example, SimplyInsuredraised their Seed on April 20thand went on to raise their Series A on June 30th. Weeks after closing funding, DocuSignreceived a $45 million infusionwhich increased their Series F funding round to $278 million. Lastly, Tracxnraised $10 million in fundingin June, after raising their $3.5 million Series Ain April.
U.S. Regional VC Funding Statistics
Startup funding for Q2 2015 was geographically diffuse and capital invested was strikingly different by region.
Bay Area startups received the most venture capital and deals compared to other top funded regions. Deal volume for the Bay Area is up 32% from last quarter.
New York startups received the 2ndmost venture dollars. Startups in this region experienced the greatest compounding employee growth after funding (18%).
Our analysis suggests that New York startups have the resources to sustain company growth after fundraising, despite lower average deal sizes relative to other regions.
Startups receiving funding in Austin and Washington D.C. are smaller in size, on average, when compared to startups in other regions.
Austin and D.C. received a sizable amount of capital at $420 million in total venture funding, despite the early stage of these startup ecosystems.
U.S. Deal Volume By Series
Q2 2015 Late round (Series E-H) deal volume was the highest it has been all year. Although Late stage deals occurred less frequently than other series in Q2 2015, they occurred 43% more frequently than last quarter, and 100% more frequently than Q2 2014.
Pre Series A deals occurred most frequently in Q2 2015 and represented 30% of all funding events. Early stage funding rounds (Pre Series A and Series A) comprised the majority of all venture capital deployed (58%). The number of early stage rounds is up 18% from last quarter.
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What Are The Most Notable U.S. Funding Deals In Q2 2015?
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Venture Capital Funding Trends
Total capital invested, after taking a slight dip in Q3 2014, has shown a strong upward trend with an increase of 15% over the past year.
Q2 2015 venture capital deployed is up9% from last quarter. If this upward trend continues into Q3 2015, we expect the US startup ecosystem to bring in well over 18 billion in venture dollars.
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Deal volume has decreased by 39 % in the past year. It appears that this trend may not be sustained since there was a 18% increase in number of venturedeals from Q1 to Q2 2015.
Interestingly, there is a negative correlation between deal volume and total venture capital deployed in the past year. This relationship suggests that investors are favoring less frequent, but larger investments. This investment style is further supported by average funding amount trends.
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Average deal size has increased 93% in the past year.
Venture deals from Q1 to Q2 2015 experienced a 6% decline in average deal size.
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Average deals and total venture funding increases over the past year is due, in part, to changes in distribution of investments at each stage.
Earlier stage investments accounted for 72% of all investments in Q2 2014. In comparison, only 60% of investments in Q2 2015 were Pre Series A or Series A. Pre Series A funding events were 99% more common than any other series deal in Q2 2014. This is a 41% greater deal volume frequency than Pre Series A deals observed in Q2 2015.
Interestingly, all series later than Pre Series A occurred more frequently in Q2 2015 vs Q2 2014. Q2 2015 Series B and later round investments were 12% more common than last years investments at these stages.
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Courtesy of an article dated July 15, 2015 appearing in The Wall Street Journal
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