Mega Deals (Like Uber) Boost Venture Funding to $13B in Second Quarter

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new technologies and ways of doing things, and they are becoming leaders in ways that won’t be seen again for another 10 or 15 years.

Valuations might seem high, but Crowe said companies like Uber represent long-term transformations in the U.S. economy that will take decades to play out. “These technology trends are only accelerating,” he said. “They are not reversing. They are not going away.”

Other highlights noted in The MoneyTree Report:

—Software got more funding than any other sector during the quarter, rising 50 percent from the prior quarter to $6.1 billion. Software also accounted for the most deals, 454.

—Biotechnology ranked as second largest sector for dollars invested, with $1.8 billion going into 122 deals.

—Nine of 17 industry categories in the MoneyTree Report showed decreases in dollars invested in the second quarter. Funding for Business Products and Services declined 69 percent, Telecommunications decreased by 43 percent, and Semiconductors fell by 29 percent.

—Venture investors sank $189 million into 55 seed-stage deals in the second quarter, and $3.8 billion into 522 early stage investments. Combined seed and early stage deals accounted for 52 percent of the total deal volume, compared to 53 percent in the prior quarter.

—VCs invested $5.7 billion in 308 expansion-stage deals, which accounted for 28 percent of all second-quarter deals. That was up slightly from 27 percent in the first quarter.

—Venture firms invested $3.2 billion in 229 late-stage rounds, which accounted for 21 percent of total deal volume in the second quarter. It was 20 percent in the prior quarter.

According to the MoneyTree Report, the Top 10 Deals are:

Uber Technologies; San Francisco; Software; $1.2 billion

Lyft; San Francisco, Software; $250 million

Pure Storage; Mountain View, CA; Computers; $225 million

Intarcia Therapeutics; Boston, Biotech; $200 million

Pinterest; San Francisco; Media and Entertainment; $160 million

SunRun; San Francisco; Industrial Energy; $150 million

Nanthealth; Culver City; Software; $135 million

Proteus Digital Health; Redwood City, Biotech (Digital Health); $119.5 million

Anaplan; San Francisco; Software; $100 million

New Relic; San Francisco, Analytic Software; $100 million

 

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Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

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