Venture capital is alive and well. Very well actually. Not since the dot-com era (seems like just yesterday, right?) has VC hit this record. U.S. venture firms threw $84 Billion at more than 8,000 firms with a huge chunk of it going into fintechs. Only one problem; seems the quality of those firms getting funding are much better now than "way back then". That also means they don't need to go public as quickly which also means the exit strategy is also delayed. Easy in, not so easy out. Hmmmmm, maybe the ICOs have replaced the early IPOs?
(Bill Taylor/CEO)
- "Funding to billion-dollar companies hits all-time record
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Number of venture-capital-backed exits hits lowest since 2011
Venture capital funding in the U.S. has hit its highest level since the dot-com era.
U.S. venture firms deployed $84 billion in more than 8,000 companies last year, according to research firm PitchBook. The last time this much money sloshed around Silicon Valley and other tech hubs, many venture firms lost their investments in the dot-com bust of the early aughts. That’s far less likely to happen today.
“While the figures are comparable to the dot-com era, the VC ecosystem appears healthy and driven by different dynamics,” PitchBook CEO and founder of John Gabbert said in a statement. “Later-stage companies with strong consumer traction are commanding large rounds of financing.”
There is a downside for investors: Because so many companies are staying private longer, they’re finding it harder to get their money out. The number of exits fell for the third consecutive year, the report said, the lowest since 2011..."
Full Story at Bloomberg