The just released trends in venture funding show growth and point to more activities.
U.S. venture industry related results for Q2 shows amongst other things:
- The amount invested by venture capitalists in the U.S. in 2Q06 was approximately $6.7 billion, against $6.4 billion in 2Q05 and $6.2 billion in 1Q06. The combined total of $12.9 billion for the first half of 2006 puts the industry on pace for its largest investing year since 2001.
- Acquisitions of venture backed companies in the U.S. in 2Q06 was approximately $7.1 billion in 92 transactions. This was a decline from $8.5 billion/97 transactions and $8.4 billion/103 transactions in 2Q05 and 1Q06, respectively, although the combined total of $15.5 billion/195 transactions for the first half of 2006 puts the industry on pace for its best acquisitions year since 2000.
- There were 16 IPOs of venture backed companies in the U.S. in 2Q06, raising $1.3 billion. The total of 29 IPOs raising $1.9 billion in the first half of 2006 puts the industry on pace to have its best IPO year since 2000, other than 2004 when 67 IPOs raised $5 billion.
Ofcourse these numbers by nature cover such a large variety of transactions bundling in all types of transactions – seed to late stage and leading to exits. It is clear that going by the activity levels , lot of startups are getting funded. The ripple effect could be felt continents away. While on this also look at the evolution and activity levels in a very hot market – India here and here . Battery ventures Mark Sherman believes that India would become one of the core venture hub shortly : silicon valley, Route 128, Israel etc. While there are some genuine concerns about what can come out of such a deluge of funds chasing the country, clearly good times lay ahead for entrepreneurs and the tech ecosystem. Also to note is that there is a clear private equity wave felt around the world.
Category :Venture Capital, Emerging Trends