In Q1 2014, there were 1,402 venture capital financings globally with an aggregate value of US$15.6bn, representing the highest quarterly value since the financial crisis in 2008, according to a research by Preqin.
This surpasses the previous high of US$14.9bn in Q2 2011 and is a significant increase from US$10.0bn for the first quarter of 2013.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
However, the number of venture capital financings has fallen consistently over recent quarters, dropping from 1,724 deals in Q2 2013 to 1,402 in Q1 2014. As a result, the average size of venture capital investments has increased from US$7.0mn in Q2 2013 to US$11.1mn in the first quarter of 2014.
Other Key Facts:
- North America witnessed an increase in the aggregate value of venture capital financings in Q1 2014 at US$10.6bn, compared to US$8.6bn the previous quarter.
- Greater China also saw an increase in the aggregate value of deals from US$800mn in Q4 2013 to US$2.0bn in Q1 2014 as a result of several large financings.
- Both the number and value of European venture deals dropped in Q1 2014 compared to the previous quarter. 313 venture capital deals were announced in Europe valued at US$2.0bn, compared to 330 deals valued at US$3.4bn in Q4 2013.
- Angel/seed deals remain the most abundant investment stage for the quarter, accounting for 19% of deals in Q1 2014, with 16% being series A, and growth capital/expansion deals representing 5%.
- The average angel/seed financing round so far in 2014 is US$1.4mn, the highest figures since 2008 and the first time this figure has exceeded US$1.1mn since 2008.
- The highest number of deals continues to come from the internet sector, accounting for 27% of the number of deals in Q1 2014. This quarter, internet deals also accounted for the highest value of all venture capital deals of any sector at 30%, up from 24% in Q4 2013, surpassing software and related deals.
Ignatius Fogarty, head of Private Equity Products – Preqin, said: "A welcome boost for entrepreneurs and small companies worldwide has come at the start of 2014, as venture capital investment is at its highest level since the financial crisis. A total of $15.6bn was invested into venture capital opportunities during the first quarter of 2014, higher than any other quarter since the start of 2008. While this will be welcome to firms that have received funding, it has come at a cost: far fewer companies acquired investment.
"Even though the majority of investment was in North American companies, there seems to be a rejuvenation of the Chinese venture capital industry, with $2.0bn worth of deals being announced, almost topping the $2.3bn which was invested in the whole of 2013."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
