Australian venture capital (VC) invested in Australia hit a near-record $230 million, according to Venture Pulse Q2 2017 — the quarterly global VC trends report published by KPMG.
Australian venture capital (VC) invested in Australia hit a near-record $230 million, according to Venture Pulse Q2 2017 — the quarterly global VC trends report published by KPMG. The number of deals, at 36, was marginally up on the last quarter (25), when $90.66 million of VC investment was recorded. Corporate venture financing in the quarter exceeded $100 million.
Amanda Price, Head of KPMG Australia High Growth Ventures commented: “This quarter’s data shows that investment in Australian startups is growing significantly – with fewer but larger deals. This indicated a maturation in our startup ecosystem, with more early-stage ventures achieving success and seeking funds to super charge their growth, often in international markets.”
“Founders are seeing increasing interest from corporates, media and government in Australia and this reflects the fact that VC funds raised over AU$1bn for the first time last year, almost double the $568 million raised in the 2015-16. With more capital available and deal flow up strongly on previous years, I expect investment to continue to be strong over the year”
The quarter saw Australian startups close a number of Series A, B and C rounds with significant deals such as Culture Amp, Unlockd, and ROKT. The quarter also saw a surge in corporate financing with $109.1 million invested in Australian startups by corporate venture funds.
Globally, venture capital deal value increased by 55.3 percent to $40.07 billion in Q2’17, propelled by an uptick in mega-deals around the world, The United States led VC investment, accounting for $21.8 billion, followed by Asia ($12.7 billion) and Europe ($4.1 billion).
The increase in funding was strongly affected by a continued resurgence in mega-deals, including Didi Chuxing’s record-breaking $5.5 billion round and Toutiao’s $1 billion Series D round. Globally, there were nine deals at or over $500 million in value during the quarter including Mobike ($600 million) from Asia and Outcome Health ($600 million) from the United States. Europe also saw one of its largest funding rounds ever with Improbable’s $502 million Series B raise.
While deal value increased, the total number of deals fell for the fifth straight quarter in Q2’17. The ongoing decline has affected the earliest deal stages the most, with angel and seed-stage deal count down for the ninth straight quarter – from a high of 2,674 in Q1 2015 to just 1,310 this quarter.
In spite of the decline in transaction volume, the venture environment remains healthy and vibrant, with median valuations increasing at all stages of investment on a global level. Late stage valuations, in particular, demonstrated exceptional strength this quarter, leaping from $175 million in 2016 to $260 million in 2017, year to date, the largest median increase observed this decade.
*Note: all figures cited are in USD except where stated; data for the report provided by PitchBook.
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The Q2 2017 edition of the Venture Pulse report produced by KPMG Enterprise’s Global Network for Innovative Startup, analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. KPMG Enterprise has expanded the scope of Venture Pulse; this edition of the quarterly series provides in-depth analysis on the lifecycle of venture capital investments across the Americas, EMA and ASPAC, including a look at investment activity such as valuations, financing, deal sizes, mergers & acquisitions, exits, corporate investment and industry highlights.
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