Q2'16 Venture Pulse

Q2'16 Venture Pulse

VC funding showed a slight increase in Q2’16 rising to $27.4B lifted by $1B+ rounds to “decacorns”

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Q2'16 Venture Pulse

This quarter, we explore top-of-mind issues for investors in key regions of the world and reflect on a number of questions that will affect the VC market going forward, including:

  • What factors are driving the declining number of deals in the VC market?
  • How will the results of the UK’s Brexit referendum affect VC investment?
  • Are VC-backed unicorns starting to die off?
  • How are artificial intelligence technologies poised to reshape business?


GLOBAL INVESTORS CONTINUE TO DIAL BACK DEAL ACTIVITY IN Q2’16

Following two consecutive quarters of declines, global funding to VC-backed companies edged up 3% to $27.4B in Q2’16, lifted by $1B+ rounds to ‘decacorns’ (such as Uber and SnapChat) valued at $10B+. Deal activity had already slowed noticeably in Q4’15 and Q1’16, but global financings dropped a further 6% in Q2’16, down to 1866.

Learn more about global VC activity, download the full report – Venture Pulse Q2’16 Global.


U.S. DEALS FALL IN Q2’16 WHILE FUNDING SEES SLIGHT GROWTH FROM Q1’16

U.S. funding was up to $16.7B, rising 10% from Q1’16. However, the quarterly deal count of 1048 slipped 9% from the quarter prior, and represents a 26% year-on-year plunge. Quarterly deal growth was flat or negative across the top three states: California, Massachusetts and New York. But a few outsized mega-rounds lifted California’s total funding 63% from Q1’16.

For more analysis of North America VC activity, download the full report – Venture Pulse Q2’16 North America.


KPMG'S VENTURE CAPITAL PRACTICE

KPMG’s Venture Capital (VC) practice offers a range of Audit, Tax, and Advisory services tailored to help venture-backed companies navigate each stage of development—from idea through exit. We use our knowledge of the VC ecosystem to help entrepreneurial ventures simplify the complex challenges of creating the technologies of tomorrow in highly competitive industries while also meeting diverse regulatory, compliance, and financial reporting requirements. Our VC clients collaborate with a global network of KPMG professionals who understand the marketplace challenges facing start-ups and growth companies. Our passion and mind-set match the companies we serve: entrepreneurial, hands-on, proactive, visionary, and dedicated.

For further analysis of global and regional venture capital activity and trends, contact our professionals in the VC practice. Visit www.kpmg.com/us/venturecapital

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