Funding reaches highest quarterly mark since Q1 2001 - $13.88B across 974 deals - mega rounds and billion dollar financing valuations become commonplace.

Bubble chatter probably isn’t going away anytime soon it seems. After Q1’14 saw venture capital investment hit its highest quarterly mark since Q2’01, investors deployed 39% more capital across 11% more deals. In aggregate, H1’14 saw U.S. VC funding leap to $23.87B, a 71% increase versus H1’13. The number of U.S. tech companies that raised their first financing at a $1B+ valuation has jumped as well – and represents a 133% increase from the total number of companies that raised at a $1B+ valuation in all of 2013.

While funding numbers have boomed compared to recent quarterly tallies, VC-backed IPO activity was more tame. Of note, 24 U.S.-based VC-backed companies went public in Q2, down from 35 in Q1. In particular, venture-backed tech IPO activity has seen little frothiness. VC-backed M&A ticked up in Q2, rising 7% on a quarterly basis.

Download the entire 114 page Q2 2014 Venture Capital Activity and Exit Report here. (note: The report is only available to paid CB Insights subscribers.)

chart5New normal? $4B+ invested invested each month in Q2

VCs got extremely busy in Q2, completing 300+ deals in each month of the quarter. With a plethora of mega rounds throughout the quarter, monthly funding levels came in at over $4B per month which is much higher than recent levels.

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First half of 2014 is all about the late-stage

Buoyed by mega-deals to familiar startups like AirBnB, Uber, Cloudera and Pinterest, late-stage activity (Series D+) took 45% of all VC funding in H1 2014.

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Healthcare again tops tech for VC-backed IPOs in Q2 2014

Over 50% of all quarterly VC-backed IPO activity went to the healthcare sector in Q2’14, the fifth consecutive quarter in which healthcare has topped tech. The biggest U.S.-headquartered IPO in Q2 by valuation at the time of exit was GoPro, backed by investors including Steamboat Ventures and US Venture Partners.

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Left coast explosion – California sees $8.93B invested across 442 deals

California VC financing blew up in Q2 as funding and deal levels jumped 55% and 12% on a sequential basis off of multiple nine-figure rounds. Of note, California saw more venture capital deals than the next 15 states combined in Q2’14. San Francisco dominated all California cities in deals and dollars – taking $4.6B in funding across 155 deals.

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Boom times for mobile funding

VC funding to the mobile & telecom sector jumped to $2.59B across 146 deals in Q2, topping Q3 2013’s previous high by 132% behind big deals to cos including Uber, Lyft, Instacart and Slack. On a quarterly basis, deals jumped 17%.

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The green tech VC comeback?

Green Tech startups saw the highest deal and funding total the sector has received since Q2’12. Compared to the same quarter last year, Q2’14 saw a notable 67% increase in VC funding dollars and a 28% rise in deals with large deals including a $150M late-stage round to SunRun and a $70M growth deal to Sungevity.

chart6NY venture funding tops $1B

Venture capital  investors deployed over $1B to NY-based startups in Q2 2014. Coming off a slightly down Q1’14, Q2 funding and deal levels grew 36% and 9% on a sequential basis. Once again, NY tech asserted its dominance over other markets with the Internet and mobile sectors taking almost 9 of every 10 funding dollars in NY in Q2.

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