What can venture capitalists expect for the last part of 2015? If the first two quarters are any indication it does not look too bad. However, that is not without some concern in key areas. Venture capital backed companies saw 1,819 deals in the first half of the year and raised over $32 billion. Globally, these figures were reflected with an impressive $59.8 billion. The first two quarters of 2015 were representative of about a 49% increase over the increases seen in the same two quarters of last year.
What is driving growth?
There were some very large deals in the first part of this year that drove funding trends worldwide. Presently, VC funded companies are on the rise and in the first half of 2015 there were over 100 mega rounds. Just the second quarter saw 61 deals that raised over $16 billion investment dollars. Driving this growth are lower interest rates. It is expected for this growth trend to continue throughout the remainder of the year since interest rates are remaining pretty much the same.
Another factor behind the trending growth is more participation in mutual funds, VC funding and hedge funds. Right now, the amount of available capital remains huge. Companies being backed with venture capital funding are staying private for longer periods of time and some of the best companies have a decent variety of funding options. These trends are also seen on a global basis and startups continue to reshape the markets across the board from hospitality to transportation and healthcare. Read the rest of this entry
Venture capitalists usually specialize in industries such as computer, biotechnology and the communications industries such as high technology companies including software, biotechnology, medical devices, media and entertainment, wireless communications, Internet, and networking startups. In the last five years, there is a big commitment from VC firms towards clean technology startups which include renewable energy, environmental and sustainability technologies and power management.
As technology progresses VC firms can benefit on the growth of a great startup company, and the company can get funding needed with the support from VC firms. This creates a win/win solution for each because many companies in the technology industry need more funding then most business loans provide. A few examples of companies that got their start from Venture Capital funding are Digital Equipment Corporation, Apple Inc., Genentech. These companies received funding as far back as the 1980’s. Knowing this, Venture Capital is nothing new and here to stay. Read the rest of this entry