VC Investments

There is never a shortage of new ideas and the entrepreneurs behind them, but the number who secure investment does vary. In the first quarter of 2016 it was particularly difficult for entrepreneurs. Fewer startups received first-time funding and those who did receive investment received smaller amounts.

According to MoneyTree™ report during the first three months of 2016, initial funding deals declined 16 percent to 297, and the total dollars invested fell 31 percent to $1.7 billion, according to the latest

The average amount for first-time financing dropped 17 percent from $6.9 million in the fourth quarter of 2015 to $5.7 million in the first quarter of 2016.

All that said it was still a strong first quarter for venture activity compared to recent years. We have seen several strong quarters of VC fundraising so we fully expect to see investors looking for interesting investment opportunities. Where will that money go? We believe the preference for Software and Biotech will continue.

Software companies received the highest level of funding, receiving just over $5 billion in 376 transactions, a 12 percent increase in value and a 5 percent decrease in deal volume compared to the fourth quarter of 2015.

Biotech companies received the second largest amount of funding, receiving almost $2 billion in 118 transactions, representing an 11 percent increase in value and a 19 percent increase in deal volume compared to the fourth quarter of 2015.

See the following chart for a comprehensive view of which sectors attract investment capital.

Investments by industry Q1 2016, Q4 2015, and Q1 2015       Source: MoneyTree(TM)

(MoneyTree™ report is produced by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.)

More detailed results can be found at

First published by Adrian G Stewart at OOKII.Company

Adrian G Stewart

Adrian G Stewart

About adriangstewart

Senior executive with expert knowledge of all aspects of strategic marketing and a track record of creating sustainable competitive advantage. International management and leadership experience in both B2B and B2C organizations. Specialties:Strategic marketing management including; new product development, product life cycle management, business relationship management, market segmentation, marketing information systems, e-commerce and social media marketing.
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