Venture Pulse Q3’16

Venture Pulse Q3’16

The Venture Pulse – Q3’16 Global Analysis of Venture Funding report leverages data from CB Insights and insights from KPMG Enterprise Innovative Startups network members.

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This edition of the report seeks to answer a number of key questions, including:

  • Is the VC market ready to make a rebound?
  • Why are Chinese investors focusing more globally than locally?
  • In the wake of Brexit, what European jurisdictions are trying to attract start-ups?
  • How has cybersecurity evolved – and what does that mean for VC investors?

Highlights from the Q3’16 report

Global funding drops: Quarterly funding to VC-backed companies had hovered in a $27B to $28B band since crashing in Q4’15, but saw a further decline to $24.1B in Q3'16. That’s the lowest quarterly funding total since Q3’14.

The report also uncovered the following trends:

  • Global deal activity appears to have stabilized around the new normal. Q3’16 deals totaled 1983 globally, up just slightly from last quarter’s figure.
  • 2016 has yet to see a quarter with double-digit entrants to the unicorn club. Asia saw a slight bounce-back with four new unicorns this quarter. North America also saw the creation of four unicorns, while Europe saw none for the second-straight quarter. 
  • Europe saw mixed results again this quarter. Q3’16 marked the second-consecutive quarter that saw deal activity rising while funding dollars pulled back as mega-rounds remained few and far between. Total funding came in at $2.3B across 468 deals.
  • In Asia deals slid a further 5% to 323, marking the fourth-straight quarterly decline. Funding dollars totaled $7.2B, a 3% dip from Q2’16 cushioned by large rounds to on-demand companies like Grab and Go-Jek.
  • North America saw record highs in funding last year fueled by strong mega-round activity. However, deal and dollar activity continues to slow through 2016. Deal pace in particular is down; at the current rate, 2016’s full-year deal figure will just barely match that of 2012’s.
  • Corporates and CVCs participated in over 28% of global deals, reaching a 5-quarter high as corporations actively invest in VC-backed companies.

Q3’16 Venture Pulse Report – Infographics

Q3’16 Venture Pulse Report – Infographics

The following infographics provide a global and regional overview of key findings uncovered from Venture Pulse Q3’2016.

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