Global venture capital investments increased by 55.3 percent in the second quarter of this year compared to the previous quarter. Established companies increased their share of all VC investments.
Worldwide, $40.1 billion in venture capital was invested in 2,985 deals in the second quarter of 2017. This compares to $25.8 billion in the first quarter. One in ten VC dollars flowed into Europe. At 17.6 percent of all investments, the share of established companies was at its highest level in ten years, according to the results of a recent KPMG study. Marius Sternberg from KPMG says:
“Long-established companies increasingly view investments in disruptive technologies and business models as an opportunity to drive innovation rather than a threat to their own business.”
Trend towards later-stage investment continues
According to the study authors, the VC volume was primarily driven by numerous megadeals with more than $100 million invested. Chinese Uber rival Didi Chuxing alone secured $5.5 billion, messaging platform Toutiao $1 billion, and Lyft and Outcome Health each raised $600 million. Apparently the investor trend continuesto prefer supposedly safer later-stage investments — at the expense of early-stage investments, says Sternberg:
“In 2017, the share of angel and seed financing in all investments worldwide fell below the 60 percent mark for the first time in five years.”
