Global venture funding dips while Asia stays constant in Q3

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Global venture capital funding saw a slowdown, including in the US, the traditional home of venture capital, in the third quarter this year while investments in Asia remained largely constant, according to a report.

Global funding fell 7% in Q3 (July-September) of 2019 to $50 billion, while US venture-backed companies raised $26 billion last quarter — a 15% decline compared with Q2. Deal volume too, fell 16% to 1,304 transactions, according to the report from market intelligence platform cbinsights, along with consultancy firm PwC.

Funding in Asia, however, stayed constant at $15 billion in each of the last two quarters, with deal volumes rising marginally to 1,271 transactions.

The slowdown in the US comes at a time when most new technology stocks are struggling in the public markets, with some such as WeWork unable to even get to a listing. 22 US VC-backed tech companies exited via IPOs in Q3’19, following a highly elevated 33 in Q2’19.

Sector wise, internet startups continued to see outsized investor interest, raising $10 billion across 537 deals, more than double the value and triple the volume of the next most funded sectors- healthcare; and mobile and telecommunications.

Despite the slowdown in the US, the number as well as the aggregate value of unicorns- private companies valued at over a billion dollars, hit a record. At the end of the quarter, the US had 180 unicorns worth a combined $621.2 billion, the report said.

Exits via mergers and acquisitions in the quarter declined slightly, to $163 billion, from $166 billion in the second quarter. IPO exits too declined from $33 billion to $22 billion.

Funding in US dipping and Asia remaining buoyant also marks a reversal from the previous quarter, where funding in startups fell 2% in the quarter ended 30 June from the preceding quarter, with deal activity in Asia slowing even as the US reported a record number of deals.

While Asia came close to surpassing North America’s deal activity in the third quarter of 2018, the region’s deal activity has since declined. It fell 24% in the June quarter.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.