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article imageLate-stage ventures drove Q2 global funding growth

By Lisa Cumming     Jul 18, 2018 in Business
According to research from Crunchbase on global Q2 2018 venture capital dealmaking, this most recent quarter puts 2018 on track to break 2017's "record-breaking" deal volume totals.
The Crunchbase report on Q2 2018 took a look at the "pace of venture capital dealmaking" and found "more deals were struck in Q2 2018 than in any prior quarter since the collapse of the Dot Com bubble."
The overall deal volume was up 18.9 per cent from last quarter, and 33.4 per cent year over year. Crunchbase attributes this to a global increase of deals happening in the seed and early stages.
While the lion's share of VC dollars still get spent on late-stage ventures, Angel and seed-stage deals made up 61 per cent of Q2 2018's total deal volume, and early-stage deals comprised around 32 per cent of the deal volume this quarter.
Insights in a KPMG report on Q2 venture funding suggests that the all the attention being payed to "mature investment sectors" comes at a cost, literally, to dollar activity in seed and early-stage deals.
"While the focus on investing in late-stage deals extends back to before the Vision Fund was announced, the increase in attention being given to mega-funds over the past few quarters may be contributing to the ongoing decline in deals activity at the angel and seed-stages," reads the report. "With a number of more mature investment sectors — such as food delivery and ride hailing — reaching a fever pitch globally, mega-funds will likely continue to invest in late-stage companies looking to fuel global expansion and take top market position either regionally or globally."
READ MORE: Q2 of 2018 was good to U.S.-based AI startups
Another trend not to be ignored is the dominance of Chinese startups, with nine of the top 10 deals globally (dollar-wise) going to Chinese startups. According to Deal Street Asia, all top ten deals were made in Asia.
More about crunchbase, Pace, Of, dealmaking, q2
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