by Rebecca Fannin
Venture capital fund raising and #investments in both the U.S. and Asia are on the mark to exceed a boom not seen since before the #financial crisis hit. This certainly bodes well for startups that are looking to innovate disruptive #technologies and to go global.
In the U.S., fund raising is back to the level of 2007, during the last bubble. More than $10 billion was raised by U.S. venture firms in the second quarter of 2015. At this rate, VC fund raising is set to surpass the $30.7 billion in 2014 and the $29.9 billion in 2007, notes Bobby Franklin, president and CEO of NVCA. Leading the pack was venture firm NEA, which raised $2.8 billion — the largest early stage VC fund since records began in 1980.
Given the unicorn financings going on these days, however, there may be still quite some distance to go before the market sees too much capital chasing too few startup deals.
Venture capitalists invested $48.3 billion in 4,356 deals in 2014, an increase of 61 percent in dollars and a 4 percent increase in deals over the prior year, NVCA data show. It was the highest level of investment since 2010. Two deals exceeded $1 billion in 2014, and there were more than 40 megadeals – investments exceeding $100 million.
These same upward trend lines can be spotted for VC in emerging #markets. Venture capital represented 20 percent of total private #equity in emerging markets during 2014, up from 8 percent in 2010, according to the Emerging Markets Private Equity Association.
Most of the $6.5 billion invested in Asia VC is concentrated in China and India, EMPEA data indicate. Last year, China accounted for 75 percent of that total, followed by India at 21 percent.
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