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Megadeals and Numbers In The Billions Mark Q4 MoneyTree Report

By Rob Starr, Content Manager

According to The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters, the highest level of Internet-specific investments since 2000 was just one of the noteworthy high-water marks for Q4 2014 with a 29% rise in Biotechnology investment and fourteen of the 17 industry categories experiencing increases in dollars invested over the year setting some of the other positive benchmarks.

“The level of investing was pretty exciting in 2014. We saw another round above a billion dollars and 47 of what I like to call the Megadeals with rounds of a hundred million dollars or more coming in and that compares to 16 in all of last year,” said Mark McCaffrey, Global Software Leader and technology partner at PwC.

“I may even have to go and redefine the minimum level of megatrend based on the level of investing we’re seeing.”

He goes on to say people are putting their money into the kinds of disruptive technologies

Mark McCaffrey

Mark McCaffrey

where they see value to the consumer on a global basis and of course the numbers bear that point out. For example, annual investments into software hit a high-water mark not reached since 2000 with $19.8 billion flowing into 1,799 deals in 2014.

“The fourth quarter really ended on a high note. The trend continued around larger deals and investing and we see non traditional investors in every quarter now,” he said adding a healthy M&A and IPO market is helping to float the positive numbers in venture capital investing. He believes the momentum is also increasing with bigger rounds as companies create worldwide markets for themselves.

“From my preview sitting where I am, it’s an exciting time to be part of the technology industry.”

The tide started changing for the better last year when companies started putting the cash they’d squirreled away back into play. Although McCaffrey does caution for a cap on the euphoria the numbers from the MoneyTree Report is creating since all markets are cyclical, he doesn’t see the present trends changing anytime soon.

“These companies have a goal to disrupt global markets and industries,” he said. “They’re going global and they’re going fast and they realize if they don’t do that they’re going to be subject to competitive threats from all over the world.”


















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