The Q1’15

U.S. Venture Capital Report

Financing & Exit Analysis

Venture Capital financing slowed down in Q’15, with VCs investing $11.3B across 805 deals. This is the first time since 2011 that deal activity has dropped below the 900 deal mark, while funding in VC-backed companies has hit a high breaking $17B of investment.

This in-depth report analyzes financing and exit trends across U.S.-based rounds in which VCs participated as well as top investors, exits and deals in Q1'15. Below is a high-level summary of some of the report’s highlights. For all of the findings, download the entire report. It’s free.

2015: $11.3B Invested In 805 deals, VCs Are Getting Crowded Out

Lots of Unicorn Financings; Not Many Unicorn Exits

New Enterprise Associates: Q1’15’s most active VC firm

In the midst of raising one of the largest funds in history, NEA also topped the list of most active investors of Q1’15 followed by Andreessen Horowitz and early-stage VC First Round Capital.

A list of the 15 most active venture capital investors by unique company deals is below. Download the report to see the full list.

This report highlights financing and exit trends as well as top investors, exits and deals.  To receive the Q1’15 U.S. Venture Capital Report, sign up by entering your business email address in the form below. 

VC deals in Q1'15 hit a nine-quarter low and fell for the fourth straight quarter. Though VC funding decreased 18% vs Q4’14, this doesn’t tell the whole story.

When investments from hedge funds, mutual funds and private equity investors into VC-backed companies are included, VC-backed companies actually raised $17.7B of funding in Q1. 

Late-stage VCs are (1) facing more competition (2) don’t have the assets under management of these other players and (3) may also not be willing to offer valuations of these newer players.

VC-Backed exits slowed in Q1’15, with a total of 138 exits (down 19% from the previous quarter). There were only 12 VC-backed IPOs in Q1’15 compared with 24 a quarter prior. Box was the only billion dollar VC-backed tech IPO in the US this past quarter. But new private unicorns kept coming with 7 private tech companies joining the unicorn club.

Healthcare Deals Moving Away from Major Tech Hubs 

For the first time since 2013, California and Mass took less than 50% of healthcare deals. States outside of the major tech centers took nearly 44% of healthcare deals, with the most deals happening in Missouri, North Carolina, Pennsylvania, and Tennessee.

Massachusetts Overtakes New York In VC Deals And Dollars

Massachusetts beat out rival tech hub New York in number of VC financings in Q1’15, with $1.37B invested across 93 deals. Mass. saw an increase in the number of deals in healthcare and mobile companies, which helped push it past the Empire State. For a full list of investment activity by state, download the full report.

15 Most Active VCs:
  • New Enterprise Associates 
  • Andreessen Horowitz 
  • First Round Capital 
  • Slow Ventures 
  • Sequoia Capital 
  • Accel Partners 
  • Foundry Group 
  • Kleiner Perkins Caufield & Byers 
  • Khosla Ventures 
  • Atlas Venture 
  • CRV 
  • True Ventures 
  • Qualcomm Ventures 
  • RRE Ventures 
  • Formation 8 Partners