Deals and funding to early-stage tech companies in the US reached $6.9B across 2,488 deals through the first three quarters of 2016, according to The US Early-Stage Tech Report published by CB Insights.
US-based early-stage (seed and Series A) technology companies saw a 12% increase in deal activity on a quarterly basis in Q3’16 with 810 deals completed across $2.29B in funding. Despite an increase in Q3’16, deal activity is down 21% when compared to the same quarter in Q3’15 which saw 1,028 deals.
US early-stage tech deal share
The internet sector has remained dominant as a share of early-stage deal share while the mobile & telecom sector has slowly declined.
In Q3’16, the internet sector accounted for 62% of deal share and that has been consistent for several years. In contrast, mobile/telecom deal share dropped from 27% in Q3’14 to 22% in Q3’15 to 21% in Q3’16. Consumer products & services is on the rise, accounting for 6% of deal share in Q3’16, up from 2% two years earlier.
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