The venture capital market hit record levels in 2018, with robust increases in deal flow and financing sizes, coupled with soaring proceeds and a record-high median pre-money valuation. The $130.4 billion invested in the US venture capital ecosystem in 2018 represents the highest annual total in history, eclipsing the $92.9 billion raised in 2000, and the number of 2018 venture capital financings—once all deals are accounted for—should approach the record-high annual tally from 2000.

VC-backed company liquidity activity was also strong in 2018. The IPO market produced a 56% year-over-year increase and attractive valuations, while acquisition activity reached record levels of transactions and proceeds.