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O V E R V I E W
U S V C D E A L A C T I V I T Y
U S V C M E G A - D E A L A C T I V I T Y
U S V C D E A L A C T I V I T Y F O R F E M A L E - F O U N D E D C O M P A N I E S
U S V C E X I T A C T I V I T Y
Q U A R T I L E D I S T R I B U T I O N O F A G E ( Y E A R S ) O F C O M P A N I E S R E C E I V I N G A N G E L & S E E D F U N D I N G
69.2%Percentage ofVC-backed IPOs in Q4 2019
that were healthcare companies
77.5% IPO's proportion of 2019 exit value
50.1% CVC activity reached over
half of completed VC financings for fifth consecutive year
$42.3BEarly-stage deal value surpassed $40 billion
for the second time
Value of deals with nontraditional investor
participation in 2019
$97B
2,5972019 late-stage deal count was highest of the decade
237Number of mega-deals
completed during the year
$135BSecond consecutive year
total deal value tops this figure
3Number of times this decade
fundraising has topped $40B, including 2019
$256BNew record annual
VC exit value
10,777Number of deals in 2019
2.9 yearsMedian age of companies raising
angel/seed rounds; this has risen each of the past seven years
$88MMedian late-stage pre-money
valuation grew 15.8% YoY
$136.6BTotal US VC deal value
during 2019, a 5x growth over the past decade
$2
7.4
$3
1.4
$4
5.7
$4
1.3
$4
7.7
$7
2.2
$8
3.8
$7
7.6
$8
6.8
$1
40
.2
$1
36
.5
4,535
5,444
6,806
7,937
9,387
10,68411,014
9,61210,326 10,542 10,777
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal value ($B) Deal count
$1
1.3
$1
8.6
$2
5.1
$2
3.4
$2
5.6
$6
4.1
$5
9.514
25
47
2635
84
108
75
113
212
237
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal value ($B) Deal count
0
1
2
3
4
5
6
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
75th percentile Median 25th percentile
$25M+
$10M-$25M
$5M-$10M
$1M-$5M
$500K-$1M
Under$500K
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$0
$5
$10
$15
$20
$25
$30
$35
$40
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
75th percentile Median 25th percentile
$2
.0
$2
.3
$3
.4
$4
.7
$6
.3
$8
.7
$1
0.9
$8
.9
$1
3.7
$1
6.9
$1
8.3
429541
825
1,183
1,492
1,861 1,902
1,750
2,0052,057
2,184
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal value ($B) Deal count
55.7%
50.1%
33.9%
28.1%
15.5%
6.1%
34.1%
27.0%
20.3%
7.1%
0%
10%
20%
30%
40%
50%
60%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CVC investor PE investor Asset manager Government/SWF Other tourist investor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Buyout
IPO
Acquisition
2.0%0.0%
8.1%
27.1%
12.3%
18.7%
47.5%
25.2%
40.2%
50.0%
55.5%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Q 4 2 0 1 9 | D a t a g r a p h i c
In partnership with
US VC deal count and value havecontinued their charge into recordterritory.The vast amount of available capital resourcescontinues to drive growth in deal sizes andvaluations across nearly all stages. 2019recorded 237 mega-deals, an 11.8% increase over 2018. Nontraditional investors participated in more than 85% of those outsized deals.
VC-backed IPOs had a tepid end toan otherwise record year.Given the aftermarket price performance strugglesfrom 2019’s tech listings, healthcare IPOsdominated the Q4 roster instead; of the 13companies that managed to list in Q4 2019,nine were in the healthcare sector, representingan impressive 69.2% of the total IPO count.
Capital raised by US venture fundsreached $46.3 billion in 2019.Positive net cash flows and increased fund sizes havecontributed to the second-highest annualtotal in the past decade.
D E A L M A K I N G
US VC activity has continued to charge into record territory. A strong pipeline of target companies moving through their lifecycle, coupled with some of the highest capital availability we have seen has produced a strong market for dealmaking at every stage. At the same time, the median deal sizes and valuations have continued to grow,with the latter seeing an increase over 2018 figures at every stage.
U S E A R L Y - S T A G E V C D E A L S ( # ) B Y S I Z E
Q U A R T I L E D I S T R I B U T I O N O F U S L A T E - S T A G E V C D E A L S I Z E S ( $ M )
P R O P O R T I O N O F U S V C D E A L S ( $ ) W I T H N O N T R A D I T I O N A L I N V E S T O R P A R T I C I P A T I O N
U S V C E X I T S ( $ ) B Y T Y P E
E X I T S
Outlier IPOs dominated the exit landscape in 2019, driving the record $256.4 billion in capital exited.However, public listings of VC-backed companies had an especially tepid Q4 assisted by an uncertain outlook toward many potential IPOs given poor post-IPO performance from many newly listed companies. Most of this focus was directed at large money-losing technology companies, which allowed healthcare IPOs to dominate the Q4 activity, accounting for 69.2% of the quarterly total.
$2
1.7
$4
1.2
$6
7.2
$1
24
.5
$7
2.5
$1
11
.3
$7
6.5
$7
2.8
$9
7.5
$1
30
.2
$2
56
.4
479
707740
871905
10811030
906 928
1015
882
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Exit value ($B) Exit count
US VC firms raised $46.3 billion in 2019, a solid follow-up to 2018’s $58 billion record.The median fund size continued to grow, moving to $78.5 million—the highest in the past decade. Though top-end funds make up a large proportion of the total capital raised (21 funds of at least $500 million were raised during 2019), it's notable that firms raising follow-on funds closed vehicles that were 55% larger at the median than their previous fund, noting LPs' continued appetite for venture.
F U N D R A I S I N G
U S V C F U N D R A I S I N G A C T I V I T Y
M E D I A N F U N D S I Z E S T E P - U P S F O R U S V C F U N D S
$1
3.1
$1
9.0
$2
3.3
$2
4.7
$2
0.4
$3
4.9
$3
6.9
$4
1.9
$3
3.9
$5
8.0
$4
6.3
121
150 151
204
216
294308
321
276299
259
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Capital raised ($B) Fund count
21Funds of $500M+ closed during 2019
$78.5MMedian fund size of 2019,
highest in decadeMedian fund size step-up for US VC funds in 2019
55.5%
$46.3BTotal fundraising surpassed
$40B for just the third year in the past decade
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