Startup Investment Picks Up In Q1


Check out the recent report from crunchbase that highlights “2017 VC Market: U.S. Startup Investment Picks Up In Q1”

The following graph shows total projected investment, color-coded by stage.

U.S. startup investment activity somewhat rebounded after a downturn late last year, with larger rounds and an improving environment for tech IPOs. However, funding totals are still below the highs set several quarters ago.

A preliminary analysis of Crunchbase data shows that funding for U.S. startups ticked up in the first quarter of this year, with investment holding up at historically high levels across all stages.

Overall, according to Crunchbase projections, U.S. companies raised $21 billion in seed, venture, and technology growth-stage financing in Q1 2017, up from $18 billion in Q4 2016. Funding looks to be up sequentially for early stage and later investments, and the total number of funding rounds increased at all stages.

In the chart below, we look at round counts, another crucial indicator of the health of the startup ecosystem. For Q1 of this year, round counts appear to be recovering some from Q4 2016 levels. Average round size, meanwhile, looks to be trending up across stages.

The latest projected quarterly numbers indicate that the much-talked-about slowdown in funding hasn’t played out as many were predicting. U.S. venture investment showed a marked decline in the fourth quarter, but it appears the downward trajectory has at least temporarily reversed course.

To summarize: Supersized rounds at marked-up valuations are still closing, seed and early stage funds are still investing actively, and very big exits are getting done. And looking to the late stage, multiple consumer-facing online platforms closed rounds of more than $200 million each.

Read rest of the report on  crunchbase

 

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