Venture Capital Funding Opportunities Increasing

By ExpatBriefing.com Editorial 07 April, 2014

Access to venture capital funding appears to be improving, based on figures released by British research and consultancy firm Preqin. In the first quarter there were 1,402 venture capital financings globally with an aggregate value of USD15.6bn, representing the highest quarterly value since the financial crisis in 2008.

This surpasses the previous high of USD14.9bn in Q2 2011, and is a significant increase from USD10bn for the first quarter of 2013, Preqin said.

However, the study shows that 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 USD7m in Q2 2013 to USD11.1m in the first quarter of 2014.

North America witnessed an increase in the aggregate value of venture capital financings in Q1 2014 at USD10.6bn, compared with USD8.6bn the previous quarter. Greater China also saw an increase in the aggregate value of deals from USD800m in Q4 2013 to USD2.0bn in Q1 2014 as a result of several large financings.

Both the number and value of European venture deals dropped in Q1 2014 compared with the previous quarter. 313 venture capital deals were announced in Europe valued at USD2.0bn, compared with 330 deals valued at USD3.4bn in Q4 2013.

Ignatius Fogarty, Head of Private Equity Products at Preqin, pointed out that the Chinese venture capital industry is recovering, with USD2.0bn worth of deals being announced, almost topping the USD2.3bn which was invested in the whole of 2013.

The highest number of deals continues to come from the internet sector, accounting for 27 percent 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 percent, up from 24 percent in Q4 2013, surpassing software and related deals.

Tags: Investment | Accounting | China | Internet | Venture Capital | Expats | Europe | North America |

 





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