Insights on venture capital investments in emerging companies

US MoneyTree Reporting: 2020

Deal activity and funding see year over year declines while mega-rounds drive increase in funding. The pandemic is affecting regions as they are locally impacted.

US VC deals fall for the third consecutive quarter in Q1’20: 9% QoQ and 16% YoY. In March 2020, US deals decrease 22% YoY, with some of the decline attributable to the COVID-19 pandemic. Nonetheless, funding still rises 14% QoQ on the back of larger deals.

Nearly half of all US funding in Q1’20 comes from mega-rounds: Despite a slowdown in deals at the end of the quarter, 58 US companies raise rounds worth $100M or more in Q1’20, close to the record of 67 in Q2’19. 21 of these rounds took place in March 2020, suggesting COVID-19’s impact may become more apparent in Q2’20.

The number of unicorn companies reaches a new high, but aggregate valuation is falling. The number of VC-backed startups valued at $1B+ continues to rise, hitting 204 private companies in Q1’20. However, aggregate valuation dips for the second consecutive quarter, to $624B.

Global deal activity and funding see YoY declines. North America, Asia, and Europe see combined funding of $50B in Q1’20: falling 10% in Q1’20 compared to Q1’19. Asia sees the largest drop in funding, deal activity, declining 20% YoY, compared to declines of 17% in North America and 10% in Europe. Some of the decline is likely attributable to their earlier outbreak of the pandemic.

Click here to read the Q1 2020 MoneyTree Report

Click here to see the Healthcare MoneyTree analysis

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