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KPMG Reports U.S. VC Funding On Track To Break $70 Billion

By Rob Starr, Big4.com Content Manager

According to Venture Pulse Q2 ’15, the first in a global quarterly VC report series from KPMG International and CB Insights, a VC-data company, the U.S. is on track to smash the previous 2014 record and break $70B in Venture Capital (VC) spending by the end of 2015.

Internet companies have dominated VC-backed deals, and, in Q2 ’15, they lead all other sectors with 45 percent of the share. Brian Hughes, National Co-Lead Partner, KPMG LLP’s Venture Capital Practice, helped us to clarify some of the other important milestones from the report.

 

What’s the biggest factor contributing to the surge in VC funding this year?

The surge in VC funding this year can be attributed to a combination of a few factors, namely the rise of later-stage deals, companies deciding to delay going public and stay private longer,

Brian Hughes

Brian Hughes

and the availability of capital from hedge funds and mutual funds.

Are larger deals skewering the results?

 There is no question about it – larger deals are skewering the results. That is why number of deals is down but overall VC dollars invested is up.

What’s the definition and importance of Unicorns?

 ‘Unicorns’ are private companies that have a valuation greater than $1B. Because of the availability of private capital, companies are able to reach ‘unicorn’ status because they are able to stay private for a longer period of time and complete ‘Quasi Private Company IPOs’.

Which industries are leading the way?

 On-Demand economy

What future trends are developing?

 Trends that are developing that we will see boom in the near future include: Opportunities with 3D printing, and Robotics and Drone Technology.

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