First Quarter Venture Funding Bounces Back from Fourth Quarter Low

McDonnell Boehnen Hulbert & Berghoff LLP
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PricewaterhouseCoopers (PwC) and CB Insight recently released the results of its US MoneyTreeTM Report on U.S. venture funding for the first quarter of 2017.  The report indicates that venture capitalists invested $13.9 billion in 1,104 deals in the first quarter, which constituted a 15% increase in dollars and a 2% decrease in deals as compared with the fourth quarter of 2016, when $12.0 billion was invested in 1,085 deals (see chart below, which shows total venture funding from the second quarter of 2015 through the first quarter of 2017; chart from MoneyTreeTM Report).  While the increase in dollars and deals in the first quarter of 2017 reversed an eight-quarter low in both dollars and deals in the fourth quarter of 2016, first quarter funding was still $1.8 billion behind last year's pace.

Funding by Quarter

With respect to funding by sector, the internet sector captured the top spot among the sectors tracked in the report, collecting $5.2 billion in 485 deals in the first quarter of 2017.  The healthcare sector came in second, with $3.7 billion invested in 190 deals (see chart below, which shows venture funding for the internet, healthcare, mobile & telecommunications, software (non-internet/mobile), and industrial sectors; chart from MoneyTreeTM Report).

Funding by Sector

The report also includes separate analyses of funding in the areas of artificial intelligence, digital health, and cybersecurity, as well as funding by geographic region and a global regional comparison.

For additional information regarding this and other related topics, please see:

• "Venture Funding Normalizes in 2016 After Strong First Half," February 8, 2017
• " Second Quarter Venture Funding Increases 20% from First Quarter," October 11, 2016
• "Venture Funding Reaches Highest Level in More Than a Decade," February 25, 2016
• "Third Quarter Venture Funding Declines 27% from Second Quarter," October 22, 2014
• "Software Sector Leads Pack in 2Q Venture Funding and Biotech Sector Finishes Second," July 20, 2014
• "Software Sector Leads First Quarter Venture Funding to Thirteen Year High; Biotech Sector Finishes Second (Again)," April 30, 2014
• "Biotech Venture Funding Rebounded in 2013 After Strong Fourth Quarter," January 26, 2014
• "Biotech Venture Funding Sees Second Quarter Rebound," July 22, 2013
• "Biotech Venture Funding Down 33% in First Quarter," April 30, 2013
• "Annual Venture Funding Drops for First Time in Three Years," February 4, 2013
• "Biotech Venture Funding Up 64% in Third Quarter," October 29, 2012
• "Venture Funding in Life Sciences Sector Drops 9% in Second Quarter," July 22, 2012
• "Biotech Venture Funding Drops 43% in First Quarter," May 3, 2012
• "Venture Funding Increased 22% in 2011," February 2, 2012
• "Life Sciences Venture Funding Drops in Third Quarter," October 27, 2011
• "Life Sciences Venture Funding up 37% in Second Quarter," August 1, 2011
• "VentureSource Reports 35% Increase in 1Q Venture Funding," April 26, 2011
• "NVCA Reports Modest Gains in First Quarter Venture Funding," April 19, 2011

• "NVCA Reports 31% Drop in Venture Funding for Third Quarter," October 17, 2010

• "NVCA Reports 34% Increase in Venture Funding for Second Quarter," July 22, 2010

• "NVCA Report Shows First Quarter Drop in Venture Funding," April 20, 2010

• "Biotech/Pharma Financing Improving, R&D Spending Up," August 31, 2009
• "NVCA Study Shows Increase in Third Quarter Venture Funding," October 23, 2009

• "First Quarter Venture Capital Funding at 12-Year Low," April 23, 2009

• "NVCA Study Shows Decline in 2008 Investment; BIO Study Predicts Biotech Rebound in 2009," February 16, 2009

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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