KPMG Enterprises Global Network for Innovative Startups and CB Insights (the go to name for insights related to venture capital investment) launched the 3rd edition of the Venture Pulse Report. The report analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. This edition of the quarterly series provides in-depth analysis on venture capital investments across North America, EMA and ASPAC and will cover a range of issues such as financing and deal sizes, unicorns, industry highlights and corporate investment. This edition of the report seeks to answer a number of key questions, including: What's driving the decline in VC activity and will it last? Why are corporates so active in the VC market? Is the Unicorn trend dead? How is digital health bucking investment trends?
The first quarter of 2016 extended the global decline in VC activity with both total deal volume anddeal value declining, further following a major dip in Q4’15. Some of the factors driving VC investorsto take a more measured investment approach include; an economic slowdown in China, risinginterest rates and an approaching election in the US, and a June referendum over the UK’s future inthe European Union.
While disconcerting to the VC community, the decline in VC activity is likely to be a short-term trendgiven the amount of liquidity in the market around the globe. In fact, in the US, Q1’16 was one of thehighest quarters for raising VC capital since the dot-com boom of 2000. These funds will likely bedeployed over the coming quarters as VC investors renew their focus on finding disruptive orinnovative companies in which to invest.