Venture Pulse Q4 2016 | KPMG | US

Venture Pulse Q4 2016 - Global Analysis of Venture Funding

Venture Pulse Q4 2016

Global VC deal activity in Q4’16 declined 30% compared to the same quarter last year, with just 2,809 deals – the lowest deal activity since Q4’11.

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Venture Pulse Q4'16

The Q4’16 edition of the Venture Pulse report contains a look back on VC data across deals and funding in 2016, as well as analysis of global and regional perspectives from KPMG. The report includes overviews from a global and regional perspective on the innovation ecosystem, across the Americas, US, EMA and ASPAC. We also examine a number of questions related to venture capital investment, including:

  • Is the VC investment tide about to turn?
  • How have investor behaviors changed in light of 2016 trends?
  • Is the IPO market opening, particularly in the US?
  • What might 2017 have in store for VC investing?

Download the full Venture Pulse Q4’16 report for deeper analysis of VC investment trends in 2016, and what the future might hold for VC investing in 2017.

Global VC investment remains substantial, despite major decline in activity

Worldwide venture capital activity declined 24% year-over-year, with just 13,665 completed deals in 2016, compared to 17,992 in 2015. Despite the weakening activity, total VC investment remained substantial, with $127.4 billion invested globally during the year. While the amount may be below the peak of $140.6 billion invested in 2015, it is nearly double the total global VC investment seen in 2013.

VC funding decline continues in the US, rebound hopeful in 2017

After 2 strong years, both VC investment and the number of deals in the US declined substantially in 2016. Total VC investment slid to $69.1 billion from 2015’s peak of $79.3 billion, while total activity declined by more than 20 percent. The cooling of the US’s venture scene is likely a result of numerous issues that plagued the market for much of the year, instilling caution in many VC investors. The completion of the US election in November brought an end to one major uncertainty, while the Federal Reserve’s December interest rate increase demonstrated its renewed optimism for the US economy as a whole. These signs could bode well for the US heading into 2017.

KPMG's Venture Capital Practice

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

KPMG’s Venture Capital practice offers audit, tax and advisory services tailored for venture-backed startups and the next generation of leading companies. Whether you are launching a new company, expanding abroad, complying with regulatory pressures or planning an exit – our global teams are there to help at each stage of growth. Our passion and mindset matches the companies we serve: entrepreneurial, hands-on, proactive, visionary, and dedicated. 

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