1


Q2 2013 Venture Investments Update

// Wiley Becker - Principal, Square 1 Ventures

+ Contact
June 30, 2013
  • Email
Continued Slow Decline
Rebound in Early Stage Investments
Additional Decline in Telecom and Energy Deals

 

Q2 2013 Venture Investments Chart

Q2 2013 Venture Investments

PricewaterhouseCoopers / National Venture Capital Association MoneyTree TM Report, Data: Thomson Reuters ; 2013 annualized from 06/30/13; Industry, Stage, and Regional data for quarter end; Consumer Industry includes Business Products & Services, Computers & Peripherals, Consumer Products & Services, Electronics / Instrumentation, Financial Services, IT Services, Media & Entertainment, and Retail / Distribution; Industry Sector includes Biotechnology, Healthcare Services, and Medical Devices & Equipment; Other Industry includes Industrial / Energy, Networking & Equipment, Semiconductors, and Telecommunications; Top four Regions by Dollars broken out

There were 913 venture capital deals in the US in Q2 2013 totaling $6.7B. This represents an increase over Q1 2013, but continues a slight decline of 3% in dollars raised on a rolling four quarter basis. 302 of the deals in Q2 2013 were first time financings, which totaled $1.1B. First time financings as a percentage of all venture deals increased slightly from Q1 2013 to represent 33% of deals and 17% of dollars raised.

Business Products and Services investments saw the greatest increase in dollars raised in Q2 2013, increasing 21% on a rolling four quarter basis. Meanwhile, Telecommunications and Industrial / Energy continued to fall dramatically by 27% and 25%, respectively. Semiconductor investments also followed suit by decreasing 27% in dollars raised on a rolling four quarter basis.

Early Stage investments rebounded slightly, increasing 3% in capital raised on a rolling four quarter basis. However, Seed investments fell 14% in Q2 2013. Seed deals averaged $3.6MM, while average Early Stage deals increased to $5.2MM,, Expansion Stage deals averaged $9.8MM, and Later Stage deals averaged $10.8MM.

Regionally, Northwest investments are currently up 7% by dollar on a rolling four quarter basis, while DC area investments fell 15% in Q2 2013.

IT investing will continue to be the bedrock of the venture industry – but at sustainable levels. Life sciences investment is poised for a slow and steady recovery, provided we can continue to see progress on the regulatory front. And as clean energy continues to evolve from a capital intensive to a capital efficient model, it is clear that the venture industry is responding to the market forces at work," added Mark Heesen, President of the NVCA. 
The increase in early stage investing is an encouraging sign that entrepreneurs with innovative ideas can get the funding they need to succeed,” noted Mark McCaffrey, global technology partner and software leader at PwC US. “As the exit window continues to open, we’ll continue to see VCs shifting their focus back to companies in the earlier stages of development…”

The views, opinions, beliefs, conclusions, and other information expressed in this material is not given, verified, or endorsed by Square 1 Financial, Inc. or any of its affiliates. Instead, this material is solely the work of the author, and represents his views, opinions, beliefs, conclusions, and other information he wishes to present, in all cases without any manner of endorsement from or verification by Square 1 Financial, Inc. or any of its affiliates. 

This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that the author believes to be reliable, but which has not been independently verified by the author, Square 1 Bank, or any Square 1 affiliate, and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal, or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to this material should be construed as a solicitation, offer, or recommendation to acquire or dispose of any investment, or to engage in any other transaction. 

All material presented, unless specifically indicated otherwise, is under copyright to the author or Square 1 Financial, Inc. (or its affiliates), and is for informational purposes only. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied, or distributed to any other party, without the prior express written permission of Square 1 Financial, Inc. or the author. All trademarks, service marks, and logos used in this material are trademarks, service marks, or registered trademarks of Square 1 Financial, Inc. or one of its affiliates. 

Square 1 Bank is a member of FDIC and Federal Reserve System. Square 1 Bank and the Square 1 logo are among the trademarks registered to Square 1 Financial, Inc. Square 1 Asset Management, a registered investment advisor, is a non-bank affiliate of Square 1 Bank. Products offered by Square 1 Asset Management are not FDIC insured, are not deposits or other obligations of Square 1 Bank, and may lose value. 

 


Back To Insights

  • Email