US VC deal activity declines in Q1’20, but mega-rounds
drive increase in funding
US VC deals fall for the third consecutive quarter in Q1’20:
Deal activity for US VC-backed companies falls 9% QoQ
and 16% YoY. In March 2020, US deals decrease 22% YoY,
with some of the decline likely attributable to the earlier
COVID-19 pandemic. Nonetheless, funding still rises 14%
QoQ on the back of larger deals.
Nearly half of all US funding in Q1’20 comes from mega-
rounds: Despite a slowdown in deals at the end of the
quarter, 58 US companies raise rounds worth $100M or
more in Q1’20, close to the record of 67 in Q2’19. 21 of
these rounds took place in March 2020, suggesting COVID-
19’s impact may become more apparent in Q2’20.
The number of unicorn companies reaches a new high, but
aggregate valuation is falling: The number of VC-backed
startups valued at $1B+ continues to rise, hitting 204 private
companies in Q1’20. However, aggregate valuation dips for
the second consecutive quarter, to $624B.
Global deal activity and funding see YoY declines
North America, Asia, and Europe see combined funding
of $50B in Q1’20: Global VC funding falls 10% in Q1’20
compared to Q1’19.
Asia sees the largest drop in funding, deal activity: Asia deal
activity declines 20% YoY, compared to declines of 17% in
North America and 10% in Europe, with some of the decline
likely attributable to the earlier outbreak of COVID-19
pandemic. Funding to startups in Asia falls 19% YoY.
Atlanta, St. Louis, and Boston Metros hit eight-quarter highs
for funding activity: Atlanta Metro funding increases to $540M
in Q1’20, driven by two $200M+ mega-rounds, while St. Louis
Metro funding reaches $412M. Boston Metro sees a 19% YoY
increase in funding, rising to $3.5B.
The largest deals in the US all come from Silicon Valley:
Despite a 12% YoY decrease in deal activity, the top five
funding rounds in the US are all Silicon Valley startups that
raised $450M+ e