KPMG Venture Pulse 2018 Q2

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A record-shattering $14 billion raise by Ant Financial in China, in addition to $1 billion+ mega-rounds to Weltmeister, Pinduoduo, Faraday Future, and Manbang Group helped propel VC investment in Asia and the Americas. While VC investment in Europe remained far behind the other regions, a rebound in investment in the UK helped to keep European investment relatively strong quarter-over-quarter.
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KPMG International Venture Cooperative KPMG International International Cooperative KPMG International KPMG International KPMG International Cooperative KPMG International KPMG independent member firm
http://www.techcelerate.ventures - Trusted partner for Series A Investment
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
1
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture 
Pulse
Q2 2018
Global analysis of
venture funding
12 July 2018
2
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Welcome 
Welcome to the Q2'18 edition of KPMG Enterprise's Venture Pulse 
a quarterly report highlighting key trends, opportunities and challenges 
facing the venture capital market globally and in key regions around 
the world.
A record-shattering $14 billion raise by Ant Financial in China, in addition 
to $1 billion+ mega-rounds to Weltmeister, Pinduoduo, Faraday Future, 
and Manbang Group helped propel VC investment in Asia and the 
Americas. While VC investment in Europe remained far behind the other 
regions, a rebound in investment in the UK helped to keep European 
investment relatively strong quarter-over-quarter.
Artificial intelligence continued to be a hot area of investment in all 
regions of the world in Q2'18, while autotech, cybersecurity, agtech 
and biotech were also seen as key priorities. 
The IPO market gained momentum in Q2'18 with the successful IPOs 
of Ayden in the Netherlands, DocuSign in the US and a number of 
other software-as-a-service companies. M&A activity was also robust, 
led by the $7.5 billion acquisition of GitHub by Microsoft. With post-IPO 
results showing positive returns, it is likely that other VC-backed 
companies in the US, Europe and Asia could move forward with IPOs 
over the next few quarters  if only as a means to create exit 
opportunities for their early investors.
Looking forward to Q3'18, AI and data analytics are expected to 
remain high on the radar of VC investors. It is also expected that 
companies in maturing sectors, such as e-commerce, will continue to 
broaden their offerings and investments in order to access new or 
adjacent verticals. 
In this edition of Venture Pulse, we look at these and other global and 
regional trends, including:
 The implications of the plateau in seed and angel stage deals in 
the US
 The major focus on artificial intelligence by both governments and 
investors
 The strengthening IPO market globally and the shifting rationale for 
holding IPO exits
 The evolution and rising prominence of agtech 
We hope you find this edition of Venture Pulse insightful. If you would 
like to discuss any of the results in more detail, please contact a 
KPMG Enterprise adviser in your area.
message
Jonathan Lavender
Global Chairman, 
KPMG Enterprise, 
KPMG International
Brian Hughes
Co-Leader,
KPMG Enterprise 
Innovative Startups 
Network, KPMG 
International and Partner, 
KPMG in the US
Arik Speier
Co-Leader,
KPMG Enterprise 
Innovative Startups 
Network, KPMG 
International and Partner,
KPMG in Israel
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Contents
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
6
Global 
Americas 
29
42
U.S.
61
Europe
84
Asia
 New record for VC topping $70 billion invested worldwide
 Late-stage accounts for ever increasing percentage of total investment
 Global fundraising remains strong  on pace with 2017
 Median deal size for 2018 reaches $50 million for Series D+ 
 Corporate VC participation surpasses 20% 
 VC totals second highest quarter in the decade
 Median pre-money valuation for Series D+ jumps to $279 million
 Canadian VC remains robust  at over $700 million
 VC investment in Mexico rebounds from Q1 lows
 Over $28 billion invested on 1859 deals in Q2'18
 Another strong quarter for Corporate Venture Capital  with $14+ billion 
invested
 Volume of first-time venture financings remain below historic averages
 Venture-backed exits robust  powered by IPO resurgence and strong M&A
 Over $5.6 billion invested on 631 deals in Q2'18
 Angel/seed deal volume continues downward trend in Europe
 Jump in median financing size persists  in particular for early and late-stage VC
 Corporate VC participation rate spikes  nearing 25%
 UK continues to dominate top deals, led by massive rounds in London and Cambridge
 Massive $35.9 billion invested on 466 deals in Q2'18
 Corporate venture capital participates in whopping 30% of deals
 First-time financing remains robust
 Chinese companies represent 8 of top 10 deals globally
4
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
The unstoppable tide of capital
The first quarter of 2018 recorded a truly massive tally of VC invested worldwide, with the final figure 
landing at well over $50 billion once all data was collected. But even that mammoth sum pales in 
comparison to what the second quarter of 2018 recorded: $69 billion+. It has to be noted that the outlier 
company of all outlier companies  Chinese fintech giant Ant Financial  once again skewed even 
annual figures significantly, raising $14 billion in a late-stage VC round that almost beggars typical 
venture methodologies. Without that single transaction, VC invested would still have been a remarkable 
$56 billion, give or take, which signals that the unstoppable tide of capital abundance within venture 
has yet to abate.
Late-stage volume marches slowly but steadily forward
Prior to Q1 2018, even the heady period from late 2015 to the end of 2017 never saw late-stage VC 
activity account for more than 20% of global venture volume, although eventually quarterly tallies crept 
close. However, the first two quarters of 2018 have each seen well over 20% of global venture volume 
classified as late stage. The primary implications of this trend are twofold: one, companies are staying 
private longer, and two, they are still able to raise plenty of capital. But given the gradual decline in 
aggregate deal count by quarter, the riskiest potential deals are less and less likely to be closed.
Valuations persevere atop the flood of capital
Venture valuations are difficult in practice, and even somewhat so in theory. Given their degree of 
uncertainty, it is still intriguing that they remain so consistently high across the board. Such persistence 
argues significant capital abundance and consequent competition as well as investors' belief that such 
valuations will eventually pay off. That belief should not necessarily be met with skepticism; software 
M&A multiples and the rip-roaring performance of technology stocks over the past several years should 
always be borne in mind when analyzing VCs' willingness to take huge, even if risky, bets. That said, 
there is still plenty of talk around increasing caution.
European venture still characterized by late-stage-focused funds
As this edition of the KPMG Venture Pulse was being finalized, news broke of Highland Europe, a 
growth-stage VC firm, closing its third fund at $540 million (based on exchange rates at that time). 
Such a sizable close for the European fundraising ecosystem exemplifies the European venture scene 
as it currently stands: A cadre of often late-stage-focused VC firms still successfully close the bulk of 
capital within the continent, and invest across key metros, bolstering aggregate VC invested even if the 
tally of early-stage activity continues to decline. Although early-stage fundraising will experience bouts 
of bullishness, that market within Europe continues to face systemic hurdles more owing to the very 
nature of early-stage VC than anything else, as well as interplay between EU agencies or national 
governments as to specific roles.
Skewed by Ant Financial, capital flow surges to a new high
As Ant Financial's mammoth and skewing financing were already remarked upon earlier, it's important 
to note for the Asia-Pacific venture ecosystem that quarterly VC invested came in quite below the 
staggering highs previously reached in just the prior year. That said, the steadiness in late-stage 
volume as well as historical robustness of capital represents another notch in the maturation of the 
regional venture and technology scene. Ongoing political and trade concerns that look set to intensify 
could result in some hiccups in the flow of capital to VC in particular, but thus far, things remain robust.
All currency amounts are in USD, unless otherwise specified, data provided by PitchBook.
Q2'18 summary
5
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Corporate participation continues to be a highly important driver
In this and the previous edition of the Venture Pulse, corporate financings of companies that otherwise 
meet all other criteria for venture-backed financings are included for the first time. Given the evolution 
of private markets and the venture industry in general, most notably, the significant increase in 
corporate VC participation rates, this change was necessary to truly reflect the importance of the role 
that strategic acquirers and related investment arms are playing in the current landscape. Especially as 
private companies continue to elect to grow while staying private, more and more companies are 
looking to gain or maintain exposure to innovation within the private sphere, whether it be financial or 
related to intellectual property. Participation rates are at all-time highs.
Still highly cyclical on a quarterly basis, fundraising suggests ongoing alternatives commitment
Midway through the year, fundraising volume is on pace to match the tally observed in 2017, roughly 
speaking, at 234 closed vehicles. Total capital committed, however, is quite healthy, having increased 
steadily on a quarter-over-quarter basis. What these data points suggest, in the context of the 
remarkably strong fundraising cycle over the prior several years, is that the shift toward alternatives' 
allocations on the part of institutional investors is as momentous as some in the industry have declared. 
Increased allocation to VC by family offices, mutual funds (those often taking direct stakes) and others 
as part of an overall augmentation of alternatives' portions of portfolios has directly underpinned the 
bullishness of the VC cycle this past half-decade. If this trend continues, it will likely only further 
encourage highs in VC invested on a historical basis, as well as late-stage exposure. As fundraising 
volume is still skewing toward the mid-sized and large segments of the market, pure fund should 
continue to exert upward pressure across the investing side of affairs. 
Liquidity is all about timing
Private capital strategies are all about the premiums given to patient investors. With that in mind, the 
fact exit volume has steadily slid since peaks in 2014 and 2015 should not yet spark concern, 
especially as global exit value tallies have been fairly steady. What should spark concern is that there 
have been few notable surges in exit value, driven by unicorns finally going public or being acquired. 
The steady trickle of such exits still could pay off for many backers, as exemplified by Microsoft's 
acquisition of Github and some recent notable IPO filings, such as that of Domo. The key therein is the 
steadiness of such payoffs and consequent payouts to venture backers. As long as the timeline does 
not become overly protracted, investors are expected to still take delayed exits of sufficient size over 
less-robust liquidity events at the preplanned time. And, as the unicorn boom kicked off in earnest in 
the early years of the 2010s, there is still runway for typical late-stage venture fund timelines  it is 
probable that non-traditional VCs that looked for quicker exits amid exposure to fast-growing tech 
companies may be those left most disappointed, but all in all, from here on out it is the steadiness, not 
the surge, in late-stage companies' exits that matters the most.
All currency amounts are in USD, unless otherwise specified, data provided by PitchBook.
Q2'18 summary
Globally, in Q2'18 
VC-backed 
companies raised
$69.8B
across
3,108 deals
7
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Despite growing uncertainty globally, including concerns regarding US trade tariffs and changes to tax 
regulations, Q2'18 saw companies around the world raise a massive amount of VC funding, propelling 
global totals to a record high despite the continued decline in the number of VC deals. 
Ant Financial sees largest VC funding round ever
China-based deals dominated global investment activity in Q2'18, accounting for eight of the 10 
largest deals this quarter, including four $1 billion+ deals to Ant Financial, Weltmeister, Pinduoduo
and Manbang Group. The $14 billion raise by Ant Financial at the end of May represented the 
largest VC deal in history. Investors may have seen this opportunity as a mezzanine round: a 
chance to take hold of equity that could increase significantly upon an IPO that is rumored to be in 
the works for next year. 
US market activity also remained strong in Q2'18, led by Faraday Future's $2 billion round. While 
European VC deal volume decreased again this quarter, overall investment continued to build on 
an excellent start to the year. 
Artificial intelligence technologies experiencing rapid investment growth
AI continued to see substantial VC investment globally during the second quarter of 2018. China-
based facial-recognition company Sensetime raised $1.2 billion over two separate funding rounds 
this quarter, making it the world's most valuable AI company to-date.
The substantial investor focus on AI technologies reflects the widespread applicability of AI to 
different industries and solutions. Many countries have also made AI innovation a priority. The 
Chinese government, for example, has identified AI as a strategic area for investment, with a goal 
to become a global leader in AI by 2020. 
Gap in funding sizes remains noticeable
The $100 billion Softbank Vision Fund made waves in the global VC investment community when it 
was announced in 2017. Since that time, other VC investors have announced large funds to try 
and compete for late-stage deals, including Sequoia ($12 billion), Battery Ventures ($1.25 billion) 
and General Catalyst ($1billion). Even the EU is getting on board the megafund trend, introducing 
VentureEU in Q2'18, a $2.6 billion fund intended to drive investment in the region. During Q2'18, 
Softbank also suggested a second Vision Fund is coming, a sure sign that mega-funds will 
continue to be a significant contributor to the VC market in the quarters and years ahead. 
mega-funds, however, are primarily targeted toward late-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. 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.
Massive $14 billion raise by Ant Financial propels 
global VC funding in Q2'18
8
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Excitement over automotive sector technologies continues to build
In Q2'18, US-based electric car manufacturer Faraday Future reopened their last round and raised 
an additional $2 billion in funding following the $1.5 billion raise in Q1'18, highlighting the 
increasing attention VC investors are giving to automotive technologies, both in the electric car 
space and in the autonomous driving space. In the first half of 2018, the total amount invested in 
autonomous vehicles has almost eclipsed funds raised during all of 2017.
Most, if not all, traditional automotive companies are interested in the autonomous driving space 
related to either technology development or to fleet management. Large investors such as 
Softbank are also highly involved in this area, with many hedging their bets by making investments 
in multiple market leaders. For example, Softbank has invested in Uber, Didi, Grab and Ola. By 
investing heavily in different companies, it is likely Softbank will be able to force some cooperation 
between competitors in key markets while furthering competition in others.
Cybersecurity continues to be a hot-button topic for investors
With the growing focus on the Internet of Things and on autonomous driving, it is no surprise that 
VC investors have focused heavily on cybersecurity around enabling technologies. While few 
actual breaches have been publicized, there is recognition that any potential threat needs to be 
strongly mitigated right from the get-go in order to ensure confidence in the space. With the 
growing number of connected components of vehicles (e.g. guidance systems, etc.), there is 
growing pressure to ensure protections are in place.
Macroeconomic issues creating uncertainty globally
US trade tension with China, Canada and the EU is creating some uncertainty in the business 
world globally, although the actual impact has not been significantly noticeable in the VC space to 
date. The reality is that companies in China and the US have been competitors for many years in 
different industries, with competition heating up recently in the race to become world leaders in 
innovative technologies such as artificial intelligence. There has also been increasing industry-
based competition between the two countries, particularly in the telecom space where well 
capitalized Chinese companies such as Tencent, Baidu and Alibaba have made inroads in markets 
once dominated by US-based telecoms.
Exit market strengthens in the US  bodes well for the future
The IPO market heated up in the US during the first half of the year, with a number of successful 
exits, including Spotify, Dropbox and DocuSign. To date, both the number of IPO exits and their 
combined IPO value are on track to exceed 2017 numbers. Median IPO deal size is up 
substantially at $119 million, the highest the metric has been since 2018. The strength of this 
number likely reflects the pent-up demand for exits in the market following 2 years of lackadaisical 
activity. Post-IPO performance has also been very encouraging, with the vast majority trading 
above their initial IPO price. 
Massive $14 billion raise by Ant Financial propels 
global VC funding in Q2'18, cont'd.
9
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
IPOS have also been rebounding in Asia, with new listing rules related to the Hong Kong Stock 
Exchange spurring renewed interest among unicorns. It would not be surprising to see a number of 
Asia-based fintech companies looking to the IPO market to exit over the next few quarters. 
Some of the IPO activity this quarter appeared to be less about fundraising and more about 
providing liquidity for founders and employees. This will be a trend to keep an eye on to see if it 
becomes more prevalent over the remainder of the year. The desire to provide liquidity has also 
continued to fuel growth in secondary market transactions, particularly in the US. 
M&A was also strong in Q2'18, with activity such as Microsoft's $7.5 billion purchase of 
development platform company GitHub. 
Trends to watch for in Q3'18
Looking forward, tax reforms in the US, a significant amount of dry powder and the continued flow 
of funding into the VC world are expected to keep the VC market strong over the next quarter. 
Autonomous driving, healthtech and biotech are expected to be big winners over the next few 
quarters, in addition to blockchain. 
One area that may be one to watch over the next quarter will be valuations  particularly for 
companies with no tangible assets, where investors are focused on what the company might do in 
the future. The level of assumption and risk involved in these types of valuations is quite high and it 
is still to be seen if these valuations will be substantiated.
Massive $14 billion raise by Ant Financial propels 
global VC funding in Q2'18, cont'd.
10
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture financing by stage
2010  Q2'18
Once again, the venture industry has seen another high exceeded by leaps and bounds. The second quarter 
of 2018 recorded over $70 billion invested, dwarfing the prior high seen in the first quarter of the year and, 
for comparison's sake, nearly seven times the tally of Q2 2010. There appears to be virtually no limit to how 
much capital is pouring into late-stage financings of truly mammoth private companies. The poster child of 
the global late-stage largesse is Ant Financial, which raised billions in 2016 and closed on no less than 
$14 billion in fresh funding in this most recent quarter. Still, even without that gargantuan sum, Q2 2018 
would have seen $56 billion, outstripping all but the prior quarter.
Source: Venture Pulse, Q2'18. Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018. Note: Refer to 
the Methodology section on page 103 to understand any possible data discrepancies between this edition and previous editions of Venture Pulse.
The late-stage tide rolls onward
"Globally, we continue to see an upward trend in the amount of venture capital investment, even 
as deal volumes decline. Asia had a particularly strong quarter  accounting for 8 of the top 10 
deals globally  much of which was once again driven by record levels of corporate investment."
Jonathan Lavender
Global Chairman, KPMG Enterprise, KPMG International
0
1,000
2,000
3,000
4,000
5,000
6,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
Angel/Seed
Early VC
Later VC
11
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global median deal size ($M) by stage
2010  2018*
Global up, flat or down rounds
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Medians stay as high as ever amid influx of 
positive sentiment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Up
Flat
Down
$0.5
$0.5
$0.5
$0.5
$0.5
$0.6
$0.7
$1.0
$1.4
$2.5
$2.4
$2.1
$2.3
$2.8
$3.2
$3.5
$4.5
$7.0
$5.5
$6.3
$6.0
$5.8
$7.7
$9.0
$9.0
$10.0
$13.5
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Angel/seed
Early stage VC
Later stage VC
12
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global median deal size ($M) by series
2010  2018*
The hurdles that fledgling companies must face in the current, capital-rich landscape, are clear when 
examining the divergence between seed, Series A and Series B financing sizes. For the companies that can 
clear those hurdles, the rewards are rich, but to jump from a median of $1.2 million at the seed-stage, then 
nearly eight times higher at Series A, is increasingly difficult.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
New highs across the board
$0.5
$0.5
$0.4
$0.4
$0.5
$0.6
$0.7
$1.0
$1.2
$2.5
$2.8
$2.7
$3.0
$3.5
$4.1
$5.0
$6.0
$8.0
$7.0
$7.2
$7.0
$7.0
$10.0
$12.0
$12.0
$14.0
$17.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$10.0
$12.0
$11.6
$12.0
$15.0
$19.0
$22.4
$25.0
$30.0
$12.2
$14.8
$16.0
$15.9
$27.0
$35.0
$28.2
$40.0
$50.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
13
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global median pre-money valuation ($M) by series
2010  2018*
Series B valuations see the relatively greatest 
leap upward between 2017 and 2018 to date
$2.8
$3.3
$3.0
$3.2
$3.4
$4.0
$4.4
$5.2
$6.6
$6.0
$6.9
$7.8
$8.4
$10.7
$12.6
$14.0
$15.6
$20.0
$19.3
$20.4
$20.9
$24.8
$30.9
$38.6
$37.0
$40.0
$60.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$36.3
$46.0
$49.0
$52.8
$56.9
$73.8
$80.0
$87.8
$120.0
$66
$82
$91
$98
$150
$184
$150
$262
$311
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
"Global VC activity has been very strong so far in 2018, but there is still one big question out 
there and that is valuations. It is very difficult to substantiate some of the valuations we are 
seeing in the market based on current results. There's a lot of focus on what companies might 
provide in the future. The level of assumptions and risk associated with these valuations are very 
high and we have yet to see if they will be substantiated."
Arik Speier
Co-Leader, KPMG Enterprise Innovative Startups Network, KPMG International and 
Partner, Head of Technology, KPMG in Israel
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
14
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global deal share by series
2012  2018*, number of closed deals
Global deal share by series
2012  2018*, VC invested ($B)
The aggregate decline in the volume of angel and seed activity recorded since 2015 has very roughly 
approximated the robust rise in venture financing sizes and valuations recorded between the depths of the 
financial crisis and that same peak. Consequently, it seems safest to conclude that the decline is cyclical, 
a rational response to rising prices at such a risky stage.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
The early stage sees further cyclical pullback
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2012 2013 2014 2015 2016 2017 2018*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$20
$40
$60
$80
$100
$120
$140
2012 2013 2014 2015 2016 2017 2018*
Series D+
Series C
Series B
Series A
Angel/seed
15
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global financing trends to 
VC-backed companies by sector
2013  2018*, number of closed deals
Global financing trends to VC-backed
companies by sector
2013  2018*, VC invested ($B)
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Sector lines continue to blur, pharma stays strong
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201320142015201620172018*Commercial
Services
Consumer
Goods &
Recreation
Energy
HC Devices
& Supplies
HC Services
& Systems
IT Hardware
Media
Other
Pharma &
Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201320142015201620172018*
16
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
64%
27%
9%
61%
28%
11%
59%
26%
15%
57%
28%
15%
61%
26%
13%
65%
21%
14%
Americas
Europe
Asia Pacific
Financing of VC-backed companies by region
2013  2018*, number of closed deals
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Volume stays robust in developed markets
2013
2014
2015
2016
2017
2018*
17
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
69%
17%
14%
67%
14%
19%
58%
13%
29%
52%
11%
37%
52%
13%
35%
47%
9%
44%
Americas
Europe
Asia Pacific
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Asia-Pacific sees 44% of VC invested in 2018 YTD
2013
Financing of VC-backed companies by region
2013  2018*, VC invested ($B)
2013
2014
2015
2016
2017
2018*
18
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Corporate VC participation in global venture deals
2010  Q2'18
Note: The capital invested is the sum of all the round values in which corporate venture capital investors participated, not the amount that 
corporate venture capital arms invested themselves. Likewise, the percentage of deals is calculated by taking the number of rounds in which 
corporate venture firms participated over total deals.
In a cautious, high-priced environment, corporates can justify joining in higher-priced rounds and enjoy 
access to relatively much richer balance sheets, but their evolution into an important supporting player in the 
global venture landscape is a testament to the slow-moving evolution of the venture industry on the whole. It 
is important to note that direct investing is especially skewing figures, as evidenced by the sheer mass of 
capital tallied in Q2 2018, in which corporates participated or dispensed solo.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Corporate VC activity now exceeds more than 
a fifth of all deals
0%
5%
10%
15%
20%
25%
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
% of total deal count
19
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global first-time venture financings of companies
2010  2018*
Midway through the year, 2018 looks on pace to record the lowest total of first-time financings in close to a 
decade, due to a combination of factors. First, in a time marked by expensive financings and despite having 
plenty of capital on hand, investors are reluctant to pay up for the riskiest investments  brand-new 
enterprises. Second, the massive gains observed in public markets has likely disincentivized angel 
financiers from the high-stakes arena of funding fledgling opportunities. Last but not least, innovation cycles 
come and go, and although there could be a new wave of realized innovations stirring within the crypto 
sector, much of the lowest-hanging fruit in app-based, mobile-first enterprises has already been snatched.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 11, 2018.
Multiple factors combine for 2018 to perhaps hit 
an all-time low in first-time VC financings
$9
$12
$13
$13
$14
$20
$17
$14
$8
3,793
5,066
5,922
6,663
7,324
6,786
5,424
4,415
1,570
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Capital invested ($B)
Deal count
20
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Another remarkable quarter for unicorns' never-
ending ability to raise capital
Global unicorn rounds
2010  Q2'18
Note: PitchBook defines a unicorn venture financing as a VC round that generates a post-money valuation of $1 billion or more. These are 
not necessarily first-time unicorn financing rounds, but also include further rounds raised by existing unicorns that maintain at least that 
valuation of $1 billion or more.
Especially with Lyft recording a Series I financing this past quarter, in its steady progression through the 
English alphabet, it is clear that thus far, investors are still more than willing to ply existing unicorns with 
massive sums. New unicorns are still being birthed as well, but the true outliers that resulted in Q2 2018 
seeing the largest amount ever raised by new and old unicorns still skew toward the latter.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
5
10
15
20
25
30
35
40
45
50
$0
$5
$10
$15
$20
$25
$30
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
21
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture-backed exit activity
2010  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
2018 is proving significant for the exit cycle
0
100
200
300
400
500
600
$0
$10
$20
$30
$40
$50
$60
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exit value ($B)
Exit count
22
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture-backed exit activity 
(#) by type
2010  2018*
Global venture-backed exit activity 
($B) by type
2010  2018*
Liquidity options continue to proliferate for venture-backed companies. The tech IPO market has revived 
somewhat, with notable names such as Dropbox, Spotify, DocuSign, Smartsheet and Pivotal Software 
finally debuting on public exchanges. However, buyouts by PE firms and M&A also remain key for both 
backers and founders, gracing them with multiple options to find liquidity.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
2018 sees life in tech IPO market
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Strategic Acquisition
Buyout
IPO
$0
$20
$40
$60
$80
$100
$120
Strategic Acquisition
Buyout
IPO
23
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture fundraising
2010  Q2'18
The fundraising market is highly cyclical and skewed significantly by the popularity of alternative investments 
overall among capital markets. Hence, the waxing and waning of fundraising volume over the past decade. 
In the last edition of the Venture Pulse, we observed that although there could be recurrent upticks, by and 
large, on a historical basis, the fundraising cycle is slowing marginally, suggesting limited partners' appetite 
for exposure to VC may well have been mostly met. That could have been premature, as 234 closed funds 
in 2018 to date may put the market on pace to match the 460 pools closed in 2017 but, at the very least, the 
cycle is holding steady, not growing.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
One of the stronger quarters for VC raised
0
50
100
150
200
250
$0
$5
$10
$15
$20
$25
$30
$35
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital raised ($B)
# of funds raised
24
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture fundraising (#) by size
2010  2018*
After trending down as a proportion of overall fundraising volume from 2014 to 2016, first-time funds 
worldwide are still enjoying a comeback first kicked off in 2017. This trend is at least somewhat cyclical. The 
successes of the most prominent venture funds in the early part of this decade were bound to culminate in 
venture partners leaving more-established firms to strike out on their own. It is also a testament to 
bandwagoning, as the ongoing success of aforementioned prominent firms inspires other entities, such as 
governments to foster fledgling funds.
Global first-time vs. follow-on venture 
funds (#)
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
First-time funds enjoy a continued renaissance 
in 2018 to date
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015 2016 2017 2018*
Under $50M
$50M-$100M
$100M-$250M
$250M-$500M
$500M-$1B
$1B+
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201020112012201320142015201620172018*First-time
Follow-on
25
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
The agtech sector continues to draw record investment as VCs and other investors seek to finance 
solutions to the growing issue of food security amid a rapidly growing global population. VCs are 
particularly attracted to technology and innovation that helps provide more scale, sustainability and 
predictability in agriculture, a sector known for its unpredictable weather and market volatility. 
VC investment in agtech continues to break records
2017 was a blockbuster year for VC investment in Agtech, with over $1.7 billion total invested 
on the power of a series of mega-deals late in the year, including Ginkgo Bioworks, Indigo Agri
and Farmers Business Network. In 2018, we've seen this momentum continue with more than 
$600 million invested across 105 deals in the first 5 months of the year, including AgriProtein
($107 million), Edico Genome, ConCentric ($54 million) and PrecisionHawk ($75 million). 
New technology gives investors comfort in agtech investing
Agriculture has become a destination for VC investing due largely to the advancements in 
technology that help farmers better predict, manage and boost crop production. Traditionally, 
agriculture has been seen as a volatile industry, given the unpredictability factors such as, of the 
weather, pest and disease outbreaks and regularly fluctuating commodity markets. Companies that 
offer technology that helps to smooth out the food production process  from field and soil to the 
supermarket  are considered attractive. Technologies that also help to boost production and 
increase crop yields, while reducing financial and environmental costs, are also in favor in today's 
agtech market. VCs are excited by Agriculture 4.0 and a range of technologies being developed 
and refined including crop sensors, satellite imagery, the IoT, blockchain, swarm robotics, 
automation and data analytics, to name a few examples.
For instance, distributed ledger technology is helping to trace the physical product through the 
supply chain. This is important for efficiencies, but also meets a growing demand among 
consumers to source where their food comes from. Another example is AI, which is helping farmers 
better analyze animal behavior, as well as identify and track potential ailments. Meantime, 
predictive analytics is being used to assess moisture levels in a field, which helps growers ensure 
their crops received the appropriate amount of water and better predict growth curves, yields and 
harvest dates.
Agtech attracting a hybrid of corporates 
The agtech sector is maturing, as evidenced by a first wave of agtech unicorns, expansion of VC activity 
and interest from big players in both the ag and technology sectors. There are more than 30 active 
funds joining the agtech-focused funds such as Khosla, Fall Line, Finistere, Innovation Endeavors and 
S2G, among others1. There were also some meaningful VC-backed exits in 2017. M&A activity is 
expected to remain robust in the sector and a focus on the agtech startup scene where early-stage 
companies are developing various digital solutions to help improve crop production. 
Large ag players are expected to be active in M&A in the near term, as well as tech and retail 
giants such as Google and Amazon, alongside more state-owned corporations. For instance, we 
could see more financings like the $110-million Series D announced by Farmers Business Network 
late last year, which included a mix of investors from Singapore's state investment firm Temasek to 
Kleiner Perkins Caufield & Byers and GV (formerly Google Ventures)2.
VC investment in agtech continues to soar
1 https://techcrunch.com/2018/03/08/major-trends-in-agtech-for-2018/
2 https://venturebeat.com/2017/11/30/farmers-business-network-raises-110-million-to-bring-price-transparency-to-agriculture/
26
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Agtech investment has few geographical boundaries
While the US, China, India and Brazil have a strong interest and investment in ag and agtech given their 
growing populations (and mouths to feed), there are also innovative solutions coming out of Israel, 
Australia, New Zealand and the Netherlands. For example, regions with multiple climatic conditions, 
such as Australia, are most likely to have a wider range of agtech solutions. Meantime, Israel has 
developed a strong reputation for its agtech innovation pivoting from defence technologies, while the 
Netherlands has a strong reputation in the horticulture and floriculture space. 
There's also a trend towards clustering, in particular bringing together ecosystems that include 
industry bodies and research and knowledge players. The triple helix of industry, research and 
government then start to attract the fourth key ingredient: capital  which is where VCs are starting 
to play a larger role.
Trends to watch in agtech
Agtech companies are trying to disrupt how, what and where we grow. Their goal is not only to help 
feed more people more efficiently, but also to get aligned with the growing trends of transparency, 
traceability and sustainability in food production. 
Different technologies are helping to marry these various interests. For example, robotics will 
become more important as producers are under greater pressure to get the crops off the field, into 
the packaging and then through the supply chain as efficiently as possible  and with the ability to 
track the journey from farm to plate. 
We also expect to see more consolidation not just of companies, but applications for farmers. This 
will likely include putting multiple sensor-driven data inputs together and giving farmers fewer 
platforms to work with either in the cab of their tractor, on their smartphone or a desktop. The 
financial services sector is also expected to get more involved in ag and agtech, as it starts to think 
differently about its role in the production of food and insurance. For example, insurers have an 
increasingly important role to play around crop risk given the more severe weather patterns, from 
flooding to drought, that are affecting global food production.
Lastly, there will be more emphasis on sustainability in farming to help protect the planet. One 
example is a system where farmers are financially rewarded for their role in helping support 
sustainability, which can then lead to lower financial and credit costs across the supply chain. That, 
in turn, will lead to the adoption of technology to support the system. Regardless of the technology 
and its intended solution, the future of agtech is about delivering certainty for all stakeholders 
including farmers, bankers, investors and consumers.
VC investment in agtech continues soar, cont'd.
"As governments and NGOs strive to ensure they have sufficient food and water for their people, 
and meet their environmental stewardship obligations, we expect to see interest in agtech grow 
significantly and more VC activity."
Ben van Delden
Partner, Head of AgTech & Markets 
Markets and Growth
27
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Global venture financing of agtech companies
2010  Q2'18
The sum of VC invested in agtech between 2015 and 2017 rose exponentially, culminating in no fewer than 
218 completed financings within the sector for a combined total of $1.8 billion last year. The 2018 figures 
are no less robust. This trend is explained by several factors: the demonstrated potential for agtech
innovation to result in significant exits, such as those of Granular or Blue River Technology, the growing 
awareness of the need for more productive and hardy crops, as well as more efficient supply chains in 
general and last, but not least technical innovations such as, the plummeting cost of sensors that have 
made even agtech solutions more feasible.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Agtech is on the upswing
$0.1
$0.4
$0.3
$0.3
$0.7
$0.6
$1.1
$1.8
$0.6
44
57
80
78
149
163
192
218
105
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
Deal count
"There are a number of clear geographic leaders when it comes to agtech innovation and venture 
capital investment. The US remains the clear leader in this space however Israel, Australia and 
India have made inroads. We are also seeing a burgeoning agtech ecosystem in parts of Europe 
such as the Netherlands, UK and France. Here in Israel, we already have between 400-500 
agtech startups driving innovation in a wide range of areas."
Idit Blank-Varol
Head of Food & Retail, KPMG in Israel
28
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Top 10 global financings in Q2'18
Ant Financial  $14,000M, Hangzhou
Financial software
Series C
Weltmeister  $3,176M, Shanghai
Transportation
Late-stage VC
Pinduoduo  $3,000M, Shanghai
Internet retail
Series C
Faraday Future  $2,000M, Los Angeles
Transportation
Late-stage VC
Manbang Group  $1,900M, Beijing
Transportation
Late-stage VC
7
8
6
9
10
5
4
3
2
1
Ubtech  $820M, Shenzhen
Robotics
Series C
Hellobike  $700M, Shanghai
Transportation
Series E1
SenseTime  $620M, Beijing
Artificial Intelligence
Series C
SenseTime  $600M, Beijing
Artificial Intelligence
Series C
Lyft  $600M, San Francisco
Transportation
Series I
China dominates the Q2 2018 rankings
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 11, 2018.
10
3
6
4
9
7
8
5
2
1
In Q2'18 VC-backed 
companies in the 
Americas raised
$28.2B
across
1,986 deals
30
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
VC investment in the Americas remained high in Q2'18, primarily driven by strong VC market 
activity and investment in the United States. 
US continues to account for biggest deals in the Americas
The US accounted for the lion's share of VC investment in Q2'18, attracting all ten of the biggest 
deals in the Americas this quarter, including a $1B+ funding rounds to Faraday Future. While a 
minor amount compared to US totals, Canada also saw a strong level of VC activity relative to 
historical trends. Brazil, Mexico, and other countries in Latin America, however, saw limited 
investment this quarter.
Rising trade tension between US and other countries in the Americas
While trade tension between the US and other countries in the Americas appeared to be declining 
in Q1'18, the second quarter saw an unexpected reversal. While there was not a noticeable impact 
on VC investment during the quarter, the sudden increase in trade tension between Canada and 
the US could cause some ripples in the VC market over time should the tension continue 
particularly for companies and investors in the manufacturing space. 
Funding gap widening, creating challenges for middle stage funding
VC investors in the Americas continued to focus on late-stage deals in the Americas during Q2'18, 
particularly in the US and Canada. While Canada in particular has seen some strong Series A and 
B funding in the past, recent quarters have shown a shift to a new normal, one in which investors 
have started to prioritize late-stage revenue generating companies now looking to scale over 
companies earlier in their development cycle.
At the same time, there continued to be strong support for companies at the earliest of deal stages 
in the Americas. The availability of funding at both ends of the innovation life cycle has only 
increased recognition of the widening funding gap at the middle-stages of the deals continuum. 
Strong quarter for Canadian VC investment 
Canada saw a strong amount of VC activity in Q2'18, including a $98 million Series C raise by 
smart-home company Ecobee, a $70 million raise by online advance ordering company RitualTech, 
and a $54 million raise by Concentric. 
During the quarter, US-based Salesforce also launched the Canada Trailblazer Fund, a new $100 million 
VC fund in Canada aimed at investing in early-stage Canadian companies with the potential to align with 
the Salesforce platform. While the fund is intended to support the strategic goals of Salesforce, it will also 
likely contribute to the further development of Canada's SAAS innovation ecosystem. 
Americas VC market continues blistering pace
31
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Election uncertainty creating a pause in Brazil-based VC investment
The VC market in Brazil was relatively soft in Q2'18, amid growing concerns related to the 
upcoming federal election to be held in October 2018. While VC investors continued to show 
interest in the country, actual deals investment was relatively small as investors took a 'wait and 
see' approach to their investment decisions. 
Despite the uncertainty, fintech and logistics companies continued to attract some investment 
during the quarter, including Neon Bank ($22 million) and Mandae ($7.1 million). While small, these 
deals reflect areas of growing interest for VC investors in Brazil.
PagSeguro. which raised $2.3 billion during its IPO in Q1'18, announced in Q2'18 that it was going 
to release follow-on shares. This announcement created some negative ripples in the stock price of 
PagSeguro, however, the long-term impact of the move has yet to be defined.
Corporates increasingly active in VC investment space
Across the Americas, corporates have become increasingly active in the VC investment space 
from the Canadian and Brazilian banks to technology companies like OpenText and Salesforce 
which announced the creation of a VC fund focused on Canada during Q2'18. With the exception 
of investments in the US, much of the corporate VC activity seen across the Americas has been 
strategic to date, with companies focused on encouraging the development of beneficial 
technologies or on gaining access to necessary innovation talent.
Artificial intelligence remains hot in Canada
In Q2'18, Canada continued to define itself as a hotspot for innovation in artificial intelligence, 
particularly with respect to data and analytics. During the quarter, US-based NVIDIA announced 
plans to develop an innovation lab in Toronto focused on AI, joining other global companies who 
have already invested in AI innovation in Canada, such as Alphabet, Microsoft, Facebook, 
Samsung, and Uber. 
The focus of AI investments in Canada continues to be relatively diverse, ranging from support for 
biomedical research to support for fintech innovation. 
Trends to watch for in Q3'18
Heading into Q3'18, the outlook for the VC market in the Americas remains relatively positive, 
although some uncertainties remain related to US trade tensions, the upcoming election in Brazil, 
and the expectation of rising interest rates over time. 
Americas VC market continues blistering pace, 
cont'd.
32
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in the Americas
2010  Q2'18
Coming in just a few billion dollars shy of the high set in the first quarter of 2018, Q2 nevertheless raked in 
sufficient capital to become the second-highest quarter on record in the decade. More importantly, ongoing 
stability in late-stage financing volume plus an evening out in the quarterly volume of angel, seed and early-
stage rounds in the past few quarters hints at a rough stabilization in aggregate VC volume on the horizon.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 11, 2018.
Stabilization in venture volume on the horizon?
0
500
1,000
1,500
2,000
2,500
3,000
3,500
$0
$5
$10
$15
$20
$25
$30
$35
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
Angel/Seed
Early VC
Later VC
33
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by stage in the Americas
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Up, flat or down rounds in Americas
2010  2018*
Up rounds proliferate even further
$0.5
$0.5
$0.5
$0.5
$0.6
$0.8
$0.9
$1.0
$1.4
$2.7
$2.7
$2.7
$3.0
$3.4
$4.0
$4.9
$5.5
$8.0
$6.0
$7.5
$7.3
$6.7
$8.8
$10.0
$10.0
$10.2
$14.4
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Angel/seed
Early stage VC
Later stage VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Up
Flat
Down
34
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Median deal size ($M) by series in the Americas
2010  2018*
Series A, D and later see greatest relative increase
$0.5
$0.5
$0.5
$0.5
$0.5
$0.7
$0.8
$1.0
$1.3
$2.4
$2.5
$2.7
$3.0
$3.5
$4.2
$5.0
$6.0
$8.0
$7.0
$7.0
$7.0
$7.0
$10.0
$11.0
$11.0
$13.7
$16.5
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$10.0
$12.0
$11.8
$12.0
$14.0
$16.8
$20.2
$21.1
$27.0
$12.2
$14.5
$16.0
$16.0
$25.5
$30.0
$25.0
$32.2
$50.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
35
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median pre-money valuation ($M) by series in the Americas
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
In the prior edition of the Venture Pulse, it was remarked that between Series A and B, plus Series C and D, 
there was clear winnowing of the playing field of startups, as those relatively few companies that were able 
to vault between those round types enjoyed huge increases in median valuations. Such disparity has only 
persisted in 2018 to date.
Series B & D still stand out as clear phase shifts
$3.2
$3.8
$3.6
$4.0
$4.4
$5.0
$5.5
$6.0
$7.0
$6
$7
$8
$9
$11
$13
$14
$16
$20
$19
$20
$21
$25
$31
$38
$36
$40
$55
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$36
$46
$49
$54
$55
$70
$80
$80
$115
$66
$83
$92
$98
$140
$166
$137
$225
$279
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
36
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in the Americas
2010  2018*, number of closed deals
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Deal share by series in the Americas
2010  2018*, VC invested ($B)
Series D & later rounds already raking in huge sums
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$10
$20
$30
$40
$50
$60
$70
$80
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
37
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing of VC-backed companies by sector in the Americas
2010  2018*, VC invested ($B)
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Venture financing of VC-backed companies by sector in the Americas
2010  2018*, # of closed deals
Traditional areas of VC focus remain robust
0
2,000
4,000
6,000
8,000
10,000
12,000
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods
& Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
38
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Canada
2012  Q2'18
Eight financings over $20 million in size of Canadian companies closed in the second quarter of 2018. 
That healthy tally, plus diversity in the array of companies funded, with sectors ranging from agricultural 
chemicals to intelligent thermostat systems, bodes well for the health of the Canadian ecosystem, despite
moderated volume.
Another strong quarter for VC invested
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
20
40
60
80
100
120
140
160
180
200
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"AI innovation continues to be very prevalent here in Canada. It's a priority for everyone  the 
government, research institutions, traditional corporates and startups. This quarter, we saw 
Nvidia announce plans to start an AI lab in Toronto, one of the first big American companies to 
do so. It won't be the last. We expect to see a lot more following suit in the future."
Sunil Mistry
Partner, KPMG Enterprise, Technology, Media and Telecommunications, 
KPMG in Canada
39
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Mexico
2012  Q2'18
After a remarkably low tally of VC invested in Mexico-headquartered enterprises in Q1 2018 
attributable to economic and geopolitical concerns  the tide turned in Q2, with companies such as online 
lender Konfio raking in multimillion-dollar rounds. That said, there could be future lows still, given the 
overall trend over the past year and a half has been on the muted end, but the most viable companies 
should still be able to get funding when they need it.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018. 
A bounce back in VC invested for Mexico
0
5
10
15
20
25
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
40
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Brazil
2012  Q2'18
Although the largest funding in Q2 2018 was a Series D round for business software maker ContaAzul, 
most of the companies that closed on a round of funding are consumer-focused, speaking once more to 
the Brazilian startup ecosystem's relative strengths and weaknesses.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018. 
Uptick in activity among B2C-centric offerings
0
10
20
30
40
50
60
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"With an election coming in October, a lot of VC investors are taking a 'wait and see' approach 
before making any major investments. This doesn't mean interest isn't percolating. We're seeing 
a lot of corporate VC funds coming to Brazil to look for investments  and even a number of 
local companies setting up VC funds. Signaling that Corporate VC is going to grow in Brazil 
although it might take a few quarters to materialize."
Raphael Vianna
Director, 
KPMG Enterprise in Brazil
41
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Silicon Valley comes back with a vengeance in 
Q2 2018
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 11, 2018.
10
7
6
3
8
5
4
9
2
1
Faraday Future  $2,000M, Los Angeles
Transportation
Late-stage VC
Lyft  $600M, San Francisco
Transportation
Series I
Allogene Therapeutics  $411.8M, San 
Francisco
Biotechnology
Series A
Robinhood  $362.9M, Palo Alto
Financial software
Series D
Instacart  $350M, San Francisco
E-commerce
Series E
7
8
6
9
10
5
4
3
2
1
Opendoor  $325M, San Francisco
Vertical market software
Series E
Grail (Biotechnology)  $300M, Menlo Park
Biotechnology
Series C
Tradeshift  $250M, San Francisco
Financial software
Series E
Cohesity  $250M, San Jose
IT storage
Series D
Dataminr  $221M, New York
Artificial intelligence
Series E
In Q2'18 U.S. 
VC-backed 
companies raised
$27.3B
across
1,859 deals
43
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
VC investment in the US remains strong as IPO 
market sees resurgence
VC investment in the United States held strong in Q2'18, with all ten of the top US deals this 
quarter bringing in over $250 million in funding. An additional $2 billion raise by electric-car 
manufacturer Faraday Future  after reopening their Q1'18 funding round this year, helped propel 
the US VC numbers this quarter.
VC investment in US late-stage deals big winner as number of seed and angel deals plateaus
US VC investors continued to focus on late-stage deals in Q2'18, with big follow-on raises by 
Faraday Future ($2 billion), Lyft ($600 million), Robinhood ($362 million), Instacart ($350 million), 
and others. The rapid maturation of industries considered cutting edge just a few years ago such as 
food delivery, online lending and ride-hailing  combined with a slow IPO market prior to 2018 has 
led to a number of late-stage companies looking to the VC market to fuel growth and market 
leadership plays. 
With the tide turning on the IPO market, VC investors are starting to make strategic investments in 
hot verticals, including autotech, biotech, and life sciences. Angel and seed-stage funding appears 
to have plateaued following a long period of declining deals numbers. Big Series A raises by 
Allogene Therapeutics during Q2'18 may be a sign of strengthening early-stage deals activity. 
Seed and early-stage deals numbers could see a resurgence over the next few quarters in the US 
as exit activity continues to gain steam.
IPO market in US continues to gain strength
Pent-up demand and positive post-IPO performance contributed to a continued resurgence in US 
IPO activity in Q2'18. Positive exits by Docusign and Zuora this quarter, combined with strong IPOs 
by Dropbox, Zscaler, and others earlier in the year, helped to spur a renewed interest in IPO exits 
more broadly. While still early days, post-IPO performance has been quite positive for these 
companies. Investors have also taken the long-term performance by companies like Twilio, now 
2 years post-IPO, as proof that alternative business models can work and have longevity.
While many of the largest IPOs to date have come from software-as-a-service companies, it is 
expected that other technology companies will also move to exit in the coming quarters, particularly 
those that have delayed exiting due to the draught of exit activity that occurred in 2016 and 2017. 
In terms of less mature companies listing for IPO, companies in the biotech and life sciences space 
remain among the most active.
M&A activity was also positive during Q2'18, with Microsoft's acquisition of developer platform 
GitHub for $7.5 billion.
Autotech remains big focus in US 
Autotech continues to be a priority for VC investors in the US, as evidenced by Faraday Future's 
second $1 billion+ raise this year. Many traditional automotive manufacturers are investing in 
autonomous driving technologies in particular, despite the fact numerous hurdles remain before 
such technologies can be implemented at a consumer level. VC investors are focusing particularly 
on companies and management teams who have some ability to overcome recognized hurdles to 
technology commercialization.
44
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
VC investment in the US remains strong as IPO 
market sees resurgence, cont'd.
Breadth of cybersecurity investments expand
In Q2'18, cybersecurity firm Tanium raised $175 million, highlighting that cybersecurity continues to 
be a big bet among VC investors. This is particularly true given that the breadth of cybersecurity 
issues has quickly expanded beyond traditional norms. With the increase in connected 
technologies  from homes to cars to devices  there has been a related increase in concern 
regarding potential hacking. With many companies looking at breaches as a question of "When?" 
not "If"  corporate investments have also shifted to include technologies that enable rapid 
response to breaches. 
Convenience services a hot topic for investors
One trend of note so far in 2018 is the growing focus on 'convenience' companies. While verticals 
like grocery and food delivery have long been convenience-focused, companies now appear to be 
targeting more specialized niches. In Q1'18, dog-walking came under the investor microscope with 
Wag's $300 million raise. In Q2'18, a second dog-walking focused app, Rover, raised $155 million. 
The focus on dog-walking so far this year suggests that VC investors are willing to place bets on 
companies trying to make people's day-to-day lives easier to manage.
Mega-funds and niche funds find traction in the market
Following the introduction of Softbank's Vision Fund in 2017, there has been an increase in 
attention on the creation of other mega-funds  such as the $12 billion fund being raised by 
Sequoia Capital, the $1.25 billion raised by Battery Ventures, and the $1 billion being raised by 
General Catalyst. These funds and their complementary minimum cheque size highlight the desire 
of VC firms to be able to compete for the largest deals. 
While there has been a significant focus on 'bigger is better' in terms of fund size, there has also 
been some focus on small funds able to provide niche offerings, such as support to sustainable 
companies in order to meet the needs of millennials. VC investors have also focused a significant 
amount on creating specialized funds to support investments in other global markets, such as Asia, 
Mexico, and Brazil.
Trends to watch for in Q3'18
Heading into Q3'18, the VC market in the US is expected to remain strong, even with ongoing 
uncertainty related to tax reforms and trade tariffs with other countries. Activity in the IPO market is 
expected to continue to increase with a greater variety of companies looking to exit. In terms of key 
sectors, AI and autotech investments are expected to remain strong, in addition to investments in 
healthtech, biotech, and life sciences companies. 
45
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in the U.S.
2010  Q2'18
The money just keeps flowing. Last edition of the Venture Pulse, it was noted how remarkable the 
consecutive highs in quarterly VC were  but the back-to-back highs in the first half of 2018 are astounding. 
Late-stage companies are closing rounds of financing, then even reopening for additional infusions of capital 
in further tranches, in a testament to how much hype there is in the late-stage, unicorn-centric game.
.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
An unstoppable wave of late-stage capital
"While the successful IPO activity in the first half of 2018 has clearly been a catalyst for 
continuing growth in late-stage investing, the increases in funding at the earlier stages of 
investment bodes very well for the future of the VC-backed ecosystem in the US."
Conor Moore 
National Co-Lead Partner, KPMG Venture Capital Practice, KPMG in the U.S.
0
500
1,000
1,500
2,000
2,500
3,000
$0
$5
$10
$15
$20
$25
$30
$35
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
Angel/Seed
Early VC
Later VC
46
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by stage in the U.S.
2010  2018*
Up, flat or down rounds in the U.S.
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
The disparity between angel & Series A widens
$0.5
$0.5
$0.5
$0.6
$0.6
$0.8
$0.9
$1.0
$1.4
$2.6
$2.7
$2.8
$3.0
$3.5
$4.3
$5.0
$6.0
$8.2
$6.0
$7.6
$7.4
$6.9
$9.0
$10.0
$10.0
$10.8
$15.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Angel/seed
Early stage VC
Later stage VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Up
Flat
Down
47
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by series in the U.S.
2010  2018*
Note: Figures rounded in some cases for legibility.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Latest stage surges even higher
$0.5
$0.5
$0.5
$0.5
$0.5
$0.7
$0.8
$1.0
$1.3
$2.4
$2.5
$2.7
$3.0
$3.5
$4.2
$5.0
$6.0
$8.0
$7
$7
$7
$7
$10
$11
$11
$14
$16
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$10
$12
$12
$12
$14
$17
$20
$22
$27
$12
$15
$16
$16
$26
$30
$25
$32
$50
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
48
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median pre-money valuation ($M) by series in the U.S.
2010  2018*
Note: Figures rounded in some cases for legibility.
Since 2016, the latest-stage median valuations have launched into the stratosphere. The oldest unicorns 
that keep on raising sums contribute significantly to even the median of Series D and later rounds but, by 
and large, it is also a testament to how deeply the venture landscape is awash in capital.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Awash in capital, even medians stay high
$3
$4
$4
$4
$5
$5
$6
$6
$7
$6
$7
$8
$9
$11
$13
$14
$16
$20
$19
$20
$21
$25
$31
$39
$37
$40
$55
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$36
$46
$49
$54
$56
$70
$80
$80
$115
$66
$83
$92
$98
$139
$165
$137
$225
$278
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
49
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in the U.S.
2018*, VC invested ($B)
Deal share by series in the U.S.
2018*, number of closed deals
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 11, 2018.
Angel & seed experiences greatest contraction
Deal share by series in the U.S.
2017, VC invested ($B)
Deal share by series in the U.S.
2017, number of closed deals
51.9%
22.9%
12.6%
6.8%
5.7%
Angel/seed
Series A
Series B
Series C
Series D+
8.7%
20.9%
23.4%
16.1%
31.0%
55.1%
23.8%
11.3%
5.5%
4.3%
7.0%
20.5%
19.3%
17.1%
36.1%
Angel/seed
Series A
Series B
Series C
Series D+
50
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing by sector in the U.S.
2014  2018*, number of closed deals
Venture financing by sector in the U.S.
2014  2018*, VC invested ($B)
The prior edition of Venture Pulse focused upon pharma & biotech's robustness both in VC invested and 
volume in the first quarter of 2018, but it's worth noting that life sciences in general account for over 14% of 
U.S. VC volume, the highest proportion in years. As life sciences span healthcare devices & supplies plus 
pharma & biotech, it is a testament to how much more interested VCs are becoming in healthcare 
innovation as the industry grows to an even larger share of the nation's economy.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Life sciences stay strong
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018*
Commercial
Services
Consumer
Goods &
Recreation
Energy
HC Devices
& Supplies
HC Services
& Systems
IT Hardware
Media
Other
Pharma &
Biotech
Software
51
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Corporate participation in venture deals in the U.S.
2010  Q2'18
After notching the first significant dip in a while, corporate players were back at it again in Q2 2018, joining 
in more than 16% of all U.S. VC activity and a substantial portion of the period's largest venture rounds. As 
they can afford it but more importantly also often have what are in essence R&D interests in staying 
exposed to burgeoning technologies within their own industries, CVC entities are likely to stay invested.
CVC participation rebounds
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
$0
$2
$4
$6
$8
$10
$12
$14
$16
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
% of total deal count
52
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
First-time venture financings of companies in the U.S.
2010  2018*
Bouncing back from the tallies of Q1 2018, the year as a whole is recording a remarkably high aggregate of 
VC invested in first-time funding (skewed by companies such as satellite imaging system maker EarthNow, 
which had a $1 billion first-time round of Series A funds this year) even as volume remains quite low. Such 
outliers hint that the innovation cycle is in a lull right now as entrepreneurs and financiers alike tackle harder 
problems in more capital-intensive industries, such as agtech, aforementioned satellite imaging and the 
like.
Diverging VC invested & volume point to 
restarting innovation cycle
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 11, 2018.
$4.5
$6.0
$7.1
$7.2
$7.7
$8.8
$7.0
$7.3
$5.4
2,034
2,736
3,213
3,456
3,676
3,427
2,667
2,545
947
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Capital invested ($B)
Deal count
53
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
U.S. venture activity in pet technology
2012  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Pet technology has exploded in popularity, and looks set to be entering its maturing later stages of hype and 
funding cycles judging by the surge in VC invested in 2018 to date alone. Such investor enthusiasm is due, in 
large part, to the healthy growth trajectory of the nation's pet industry.
Pet projects: VC invested hits new high 
$24
$52
$245
$61
$157
$295
$488
8
13
21
16
19
25
14
2012
2013
2014
2015
2016
2017
2018*
Capital invested ($M)
Deal count
54
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture-backed exit activity in the U.S.
2010  Q2'18
As 2018 to date has seen a healthy resurgence in tech IPOs plus alternate options of exits such as buyouts by 
the likes of Thoma Bravo and Vista Equity Partners, the forecast for investors and founders looking to sell 
appears rosy. Macro trends also are relatively promising, as exit values have been steady and on the higher 
end, historically speaking, while volume has plateaued.
The U.S. sees steadiest rate of venture-backed 
exits
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
50
100
150
200
250
300
350
$0
$5
$10
$15
$20
$25
$30
$35
$40
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exit value ($B)
Exit count
"This has been the best six month period since before 2016 for the IPO market. There has been 
a significant increase in the number of IPOs and of the companies that have completed IPOs, 
approximately 70% are trading above their asking price. This is generating a lot of enthusiasm 
for IPOs among investors. Over the next quarter or 2, this enthusiasm will likely translate into 
other high-profile exits."
Brian Hughes
Co-Leader, KPMG Enterprise Innovative Startups Network, KPMG International and 
National Co-Lead Partner, KPMG Venture Capital Practice, KPMG in the U.S.
55
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture-backed exit activity (#) by 
type in the U.S.
2010  2018*
Venture-backed exit activity ($B) 
by type in the U.S.
2010  2018*
The bullish case for M&A as a source of liquidity for venture-backed companies in the U.S. in 2018 is still 
strong; it appears that the M&A cycle, although not quite as strong as it has been in past boom years, still 
has plenty of strength left.
Even with IPOs resurging, M&A is best bet
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0
200
400
600
800
1,000
1,200
Strategic Acquisition
Buyout
IPO
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Strategic Acquisition
Buyout
IPO
56
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Pharma startups raking it in 
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Venture-backed exit activity ($B) by sector in the U.S.
2010  2018*
Venture-backed exit activity (#) by sector in the U.S.
2010  2018*
0
200
400
600
800
1,000
1,200
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
57
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
U.S. venture fundraising
2010  Q2'18
As the epicenter of the venture industry, the U.S. fundraising cycle still accounts for the majority of global 
volume. The cycle has been robust, with Q2 2018 one of the stronger quarters on record in terms of total VC 
raised, however, by and large, it is difficult to see the pace of fundraising quickening in the future, at best it is 
likely to persist at the current elevated level. There does not appear to be unlimited appetite on the part of LPs 
for exposure to VC.
Even given third consecutive quarter of growth 
in VC raised, the cycle is at the least plateauing
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
20
40
60
80
100
120
140
$0
$2
$4
$6
$8
$10
$12
$14
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital raised ($B)
# of funds raised
58
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture fundraising (#) by size in 
the U.S.
2010  2018*
As noted in the prior edition of the Venture Pulse, the resurgence in first-time fundraising volume in 2017 was 
not necessarily going to persist, given the economics of that market, but in the year to date, things are 
looking relatively promising for fledgling funds coming to market and looking for capital.
First-time vs. follow-on venture funds 
(#) in the U.S.
2010  2018*
First-time fundraising still seeing decent figures 
relative to follow-on funds
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201020112012201320142015201620172018*Under $50M
$50M-$100M
$100M-$250M
$250M-$500M $500M-$1B
$1B+
0
50
100
150
200
250
300
350
2010
2012
2014
2016
2018*
First-time
Follow-on
59
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Midway through the year, fledgling funds still 
able to raise significant sums
Venture fundraising ($B) by size in 
the U.S.
2010  2018*
First-time vs. follow-on funds ($B) 
in the U.S.
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2012
2014
2016
2018*
Follow-on
First-time
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201020112012201320142015201620172018*Under $50M
$50M-$100M
$100M-$250M
$250M-$500M $500M-$1B
$1B+
60
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
2018 activity shifts to centralize around 
traditional hubs, as other areas slowly grow
U.S. venture activity (#) by U.S. region
2010  2018*
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201020112012201320142015201620172018*West Coast
Southeast
South
Other Territory
New England
Mountain
Midwest
Mid-Atlantic
Great Lakes
In Q2'18 European 
VC-backed 
companies raised
$5.6B
across
631 deals
62
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
The diversity of the European VC market helped drive investment this quarter, with the top 11 deals 
spread among six countries, including the UK, Estonia, Finland, Germany, Belgium and Israel. 
However, the UK continued to show its strength, representing 3 of the top 4 deals during the quarter. 
Regardless of the geographic and cultural diversity across the region, artificial intelligence was a 
common and very dominant theme during Q2'18 in almost all European countries. This only 
highlights AI's significant importance to the VC market both, locally and on a regional scale.
IPO market gaining slow traction in Europe
IPO exits in Europe have been sluggish over the last 2 years, but the tide might have started to 
turn with an increase in activity this quarter. In Q2'18, Netherlands-based company Ayden held a 
successful IPO  although the move was focused on providing existing stakeholders with an exit 
opportunity rather than on raising new capital. Over the first day of trading, the share price rose 
67%, valuing the company at over $14 billion. The increase in IPO activity could drive a number of 
other aging unicorns to look at IPO exits over the next few quarters.
VentureEU set to support bigger VC deals across Europe
During Q2'18, the EU and European Investment Fund launched VentureEU, a funding program 
that has been in the works for several years, aimed at filling the gaps in VC investment in Europe 
by providing access to bigger funding pools. With Europe lagging well behind both the US and 
Asia in terms of VC funding availability, particularly for larger, later stage deals , it is hoped that 
this fund, expected to reach approximately $2.6 billion, will help companies in Europe gain access 
to the capital needed to scale and compete more effectively globally. 
UK regaining ground in Europe with strong Q2'18
VC investment in the UK gained strength in Q2'18, propelling it back to the top of the VC market 
in Europe. The UK accounted for six of the top 10 European deals this quarter, including Revolut
($250 million), Freeline Therapeutics ($119 million), CRM Surgical ($100 million), Liberis
($81 million), Culture Trip ($80 million) and Crescendo Biologics ($70 million).
During Q2'18, the UK also announced a massive $1 billion deal to put the UK firmly on the map in 
terms of AI innovation. The deal included both new government funding for AI research, and 
private sector investments. Under the deal, Japanese VC firm Global Brain and Canada-based VC 
firm Chrysalix will both locate their European headquarters in the UK and will invest 35 million 
and 110 million respectively in UK-based deep-tech, AI, and robotics startups. This funding deal 
should only enhance AI investments in the UK, which are already significant. For example, 
pharma-focused AI company BenevolentAI raised $115 million in Q2'18.
European VC investment holds steady in Q2'18
63
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
AI and biotech hot topics in Germany
Germany saw a dip in investment in Q2'18 following large raises in Q1'18 by Auto1 Group and 
BioNTech. Despite the dip, venture capital investment remained respectable, led by a $76 million 
raise by Frontier Car Group and a $73 million raise by Sonnen. 
During Q2'18, Rocket Internet also announced its desire to invest approximately $3 billion in 
artificial intelligence and fintech. With the e-commerce space becoming saturated, Rocket and 
other e-commerce companies in Europe have begun to focus their attention on adjacent verticals 
with broader applications and revenue generation opportunities.
In addition to AI, biotech is beginning to gain traction among investors in Germany, a surprising 
trend given the reluctance on the part of investors to focus on the space over the past decade. 
France continues to build strong innovation ecosystem
Q2'18 was another strong quarter for venture capital investment in France, with a $50 million raise 
by OpenClassrooms, a $47 million raise by ENYO Pharma, and a $37 million raise by HiFiBio. 
French unicorn BlaBlaCar also acquired carpooling app Less, which only launched in beta 4
months ago  during Q2'18 to better support its core business. 
Artificial intelligence received a significant amount of attention during Q2'18 in France, with the 
government announcing 1.2 billion of funding over the next 4 years to support AI capabilities and 
enhance the competitiveness of French companies.
Companies feel pressure as GDPR comes into effect
The General Data Protection Regulation (GDPR) went into effect in Europe this quarter, a regulation 
that will have significant consequences for all companies operating in Europe. While the new regulation 
may not have a major impact on VC investment directly, it may cause some distraction as startups look 
to manage the new compliance regime. Given the stiff penalties associated with non-compliance, up to 
4% of global revenue or 20 million Euros, whichever is greater, it is likely that companies that have not 
done so in advance could be scurrying to do so over the next few months. 
While there may be negative short-term consequences, the benefits of a strong data protection 
system could make European companies more attractive over the longer term as they become 
global leaders in how to manage private consumer and employee data.
Trends to watch for in Q3'18
Despite some political and macroeconomic uncertainty in Europe, there is a significant amount of 
optimism for the VC market heading into Q3'18. Late-stage deals are expected to remain a key 
focus for investors, while AI, biotech and life sciences are projected to gain significant momentum. 
With the success of the Ayden IPO, a number of aging unicorns, particularly in the UK, may make 
IPO plays over the next few quarters
European VC investment holds steady in Q2'18, 
cont'd.
64
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Europe
2010  Q2'18
Venture volume may continue to contract, by and large, across the European continent, but the influx of VC 
invested continues as strong as ever. Late-stage financings may be responsible for the majority of the influx 
of capital, but their very existence does speak to continued opportunities for tech startups across the 
European venture scene, diverse as it is across multiple metropolises.
VC invested remains remarkably strong on a 
historical and standalone basis
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
$0
$1
$2
$3
$4
$5
$6
$7
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
Angel/Seed
Early VC
Later VC
65
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by stage in Europe
2010  2018*
Up, flat or down rounds in Europe
2010  2018*
Midway through the year, significant jumps in 
median financing sizes over 2017 tallies persist
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
$0.5
$0.4
$0.3
$0.3
$0.3
$0.5
$0.6
$0.8
$1.2
$1.7
$1.5
$1.3
$1.2
$1.4
$1.5
$1.6
$2.2
$4.9
$3.2
$3.3
$2.9
$3.2
$3.6
$4.0
$4.4
$5.2
$9.1
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Angel/seed
Early stage VC
Later stage VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Up
Flat
Down
66
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by series in Europe
2010  2018*
Late-stage deal sizes even out
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
$0.5
$0.4
$0.3
$0.3
$0.3
$0.5
$0.6
$0.7
$1.2
$2.4
$3.0
$2.5
$3.0
$3.3
$3.8
$4.6
$6.0
$6.6
$5.5
$6.5
$4.9
$5.6
$7.2
$10.9
$12.0
$12.2
$18.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$10.5
$5.8
$9.7
$8.5
$13.6
$19.2
$20.0
$23.0
$25.0
$9.4
$14.1
$15.0
$10.9
$29.8
$45.0
$27.5
$38.5
$38.0
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series C
Series D+
67
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in Europe
2010  2018*, number of closed deals
Deal share by series in Europe
2010  2018*, VC invested ($B)
Series B VC invested already matching 2017
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$2
$4
$6
$8
$10
$12
$14
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
68
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
European venture financings by sector
2014  2018*, number of closed deals
European venture financings by sector
2014  2018*, VC invested ($B)
Software & pharma remain focus of VCs
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017 2018*
Commercial
Services
Consumer
Goods &
Recreation
Energy
HC Devices
& Supplies
HC Services
& Systems
IT Hardware
Media
Other
Pharma &
Biotech
Software
69
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Corporate VC participation in venture deals in Europe
2010  Q2'18
CVCs keep invigorating the venture landscape
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0%
5%
10%
15%
20%
25%
30%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
% of total deal count
70
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
2018 looks set to record new lows for both 
first-time financing value & volume
First-time venture financings of companies in Europe
2010  2018*
It's not that new companies aren't being started in Europe, to reiterate the point made in the prior Venture 
Pulse  relevant data has yet to catch up, as it's notoriously difficult to track new business creation  but 
that the current high-priced climate is discouraging their financings. Moreover, alternate forms of financing 
may well be more appealing for now. Thus, 2018 looks set to be a historic year in terms of lows for both first-
time VC invested and overall activity.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
$3.0
$3.3
$3.6
$3.1
$2.6
$3.0
$3.5
$2.2
$0.9
1,163
1,482
1,709
2,011
2,206
1,789
1,473
1,100
310
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Capital invested ($B)
Deal count
71
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture-backed exit activity in Europe
2010  Q2'18
Despite the slide in exit volume over the past few quarters, again, it's worth noting that venture-backed exit 
activity in Europe is still historically healthy, especially when considering exit value tallies. Q2 2018 was 
skewed significantly by two deals, both interestingly within the realm of payments: the $2.2 billion acquisition 
of iZettle by Paypal and the IPO of Adyen on the Amsterdam stock exchange.
A mild rebound shows potential
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
20
40
60
80
100
120
140
160
180
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exit value ($B)
Exit count
72
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
PE shops continue to provide an increasingly 
used exit avenue
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Venture-backed exit activity (#) 
by type in Europe
2010  2018*
Venture-backed exit activity ($B) by 
type in Europe
2010  2018*
0
100
200
300
400
500
600
Strategic Acquisition
Buyout
IPO
$0
$5
$10
$15
$20
$25
Strategic Acquisition
Buyout
IPO
73
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
After blockbuster Q1, back to normal for 
European fundraising
European venture fundraising
2010  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Again, fundraising figures by quarter are useful to analyze, but remain quite variable. But the most recent 
high-profile raise  Highland Europe's third flagship fund in six years closed on 463 million in June 
shows that even if fundraising is still largely born on the backs of a bevy of experienced, late-stage focused 
firms, the late-stage European venture scene, for those companies that can get to that stage, should remain 
well supplied with capital.
0
10
20
30
40
50
60
70
$0
$1
$2
$3
$4
$5
$6
$7
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital raised ($B)
# of funds raised
74
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture fundraising (#) by size in Europe
2010  2018*
First-time vs. follow-on venture funds (#) in Europe
2010  2018*
Increasing shift to the middle of the fundraising 
market by size
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Under $50M
$50M-$100M
$100M-$250M
$250M-$500M
$500M-$1B
$1B+
0
20
40
60
80
100
120
140
160
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Follow-on
First-time
75
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in the United Kingdom
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Strong sums invested even as activity slides
Hot on the heels of a blockbuster 2017, the United Kingdom is still seeing aggregate sums of VC invested that 
are on the very high end, historically speaking, despite a continuing slide in total volume. This suggests that 
despite continued uncertainty on the macropolitical and macroeconomic ends, investors are only being 
moderately risk-averse, concentrating capital in safer, more mature opportunities.
0
50
100
150
200
250
300
350
400
450
500
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"We are seeing a new group of investment categories evolving  AI first businesses, blockchain
businesses, and others. These are going to help establish a new VC life cycle with increasing 
venture rounds over the next few quarters and years. Already AI first businesses are raising solid 
early- and mid-stage funding rounds. Subject to successful R&D and commercialisation, they will 
surely attract even more funding going forward."
Patrick Imbach
Head of KPMG Tech Growth, KPMG Enterprise in the UK
76
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in London
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
A mild slowdown in volume
London-based companies are still raking in plenty of capital, even if there are as of yet no such outliers like 
those seen at the close of 2017. However, third-highest quarterly sum of VC invested of the past 7 years is 
hardly anything to sniff at, against a backdrop of slowly diminishing volume. Investors may be concentrating 
more funds in safer prospects, but those companies' growth prospects are bright.
0
50
100
150
200
250
300
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
77
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Ireland
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
2018 VC invested well within historical norms
The diversity of Ireland's startup scene is more marked than many may think. The top raise in Q2 2018 was 
a $64 million round by Sublimity Therapeutics, which focuses on oral drug delivery.
0
20
40
60
80
100
120
$0
$100
$200
$300
$400
$500
$600
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"While the short-term impact of GDPR may cause some upset for European companies, 
compliance could generate some significant opportunities in the future. Since GDPR is shaping 
up to be the gold standard for the security and retention of personal information, compliant 
companies should be well equipped to compete anywhere in the world."
Anna Scally
Partner, Head of Technology and Media, and Fintech Lead, KPMG in Ireland
78
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Germany
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Q2 2018 deal volume evens out
Aggregate VC activity evened out between Q1 and Q2 2018, which, given additional data recorded in coming 
months, could very well entail that Q2 volume was more robust than that of the first quarter. VC invested also 
remained healthy, albeit skewed somewhat by used-car marketplace Frontier Car Group's $89 million round.
0
20
40
60
80
100
120
140
160
$0
$500
$1,000
$1,500
$2,000
$2,500
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"There is a lot of liquidity in the market, which will bode well heading into Q3'18. However, the level of 
uncertainty is more than we would normally see with GDPR across Europe, Brexit in the UK, political 
tension here in Germany, and a budding trade war between the EU and the US. These developments 
are going to keep investors on high alert, making them more cautious and selective."
Tim Dmichen
Partner, KPMG in Germany
79
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Berlin
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Is the used-car marketplace heating up?
Interestingly enough, after a Q1 marked by a large financing of a used-car marketplace provider  Auto1 
Group  the top raise in Berlin was by another used-car marketplace provider, Frontier Car Group. This could 
well be the late-stages of a cycle of competition, with the last companies standing now refilling their warchests
for growth.
0
10
20
30
40
50
60
70
80
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
80
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Spain
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Another strong quarter for VC invested
In the wake of Cabify's quarter-skewing raise in Q1, the Spanish venture ecosystem saw another healthy tally 
of VC invested, even as activity remains near historic lows. Most of the action was centered around B2B and 
consumer software plays, with listing platform Spotahome closing on $40 million in Series B funds and freight 
delivery platform OnTruck raking in $29.6 million, also of Series B funds.
0
10
20
30
40
50
60
70
80
90
$0
$50
$100
$150
$200
$250
$300
$350
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
81
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in France
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
France venture scene records another influx
Even after a strong Q1 that could have been deemed an outlier, French venture-backed companies continue 
to rake in plenty of capital. As always when that occurs with a slide in rounds completed, one must look for 
outliers, but surprisingly there was no single $100 million financing accounting for much of the robustness, but 
rather a flurry of decently sized rounds, with no fewer than 15 exceeding $20 million.
0
20
40
60
80
100
120
140
160
180
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"Unlike in many countries, seed-stage funding is still strong in France. The country has become a 
unique innovation laboratory catering to the world. For 6 years, it has been demonstrating its 
ability to create excellent startups able to harness an incredible level of innovation. This, in 
addition to support by the state, has helped reduce risks for seed investors, making them far 
more willing to invest than they might be otherwise."
Georges Gambarini
Innovation & Fundraising, Head of Innovative Startup Network
KPMG in France
82
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Paris
2012  Q2'18
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Paris remains central hub of French VC
Most of the money flowing to French companies still winds up in Paris, with only two of the top 10 financings in Q2 
2018 occurring in non-Paris-headquartered businesses. The largest transaction of Q2 was a $60 million financing 
of educational platform OpenClassrooms.
0
10
20
30
40
50
60
70
80
$0
$100
$200
$300
$400
$500
$600
$700
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
83
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Revolut  $250M, London
Financial software
Series C
Taxify  $175M, Tallinn
Transportation
Early-stage VC
Freeline Therapeutics  $119.2M, 
London
Biotechnology
Series B
CMR Surgical  $100.2M, Cambridge
Surgical devices
Series B
HMD Global  $100M, Espoo
Distributors/wholesale
Late-stage VC
7
8
6
9
10
5
4
3
2
1
Frontier Car Group  $89M, Berlin
Transportation
Series C
Liberis  $80.9M, London
Consumer finance
Late-stage VC
Culture Trip  $80M, London
Social content
Series B
Iteos Therapeutics  $75.8M, 
Gosselies
Drug discovery
Series B
Crescendo Biologics  $70M, 
Cambridge
Therapeutic devices
Series B
V-Wave  $70M, Caesarea
Therapeutic devices
Series C
The edges of Europe stand atop Q2 rankings
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
11
10 7
6
3
8
5
4
9
2
1
11
In Q2'18 VC-backed 
companies in the Asia 
region raised
$35.9B
across
466 deals
85
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture capital investment in Asia, and in China, in particular, was very strong this quarter, with more 
than $35 billion in total investment across 466 deals. Late-stage megadeals continued to dominate in 
Asia, representing 8 of the top 10 deals globally, including a massive $14-billion round by Ant Financial. 
During the quarter, there was also a huge exit in India and the IPO of Japan's first startup unicorn.
Fintech investment remains strong 
Investors worldwide lined up to finance fintech companies in China in Q2'18. The biggest deal of 
the quarter was the $14-billion round raised by Ant Financial, operator of Alipay  China's biggest 
online payment platform. The funding, provided by a number of international VC firms, is expected 
to help the company with its overseas expansion. Pintec, which offers end-to-end solutions based 
on AI, big data, and blockchain also raised $103 million this quarter.
Funding to help 'Uber for trucks' boost supply chain 
Truck-hailing firm Manbang, often described as China's 'Uber for trucks', received $1.9 billion 
during Q2'18. The investment is expected to help the company improve its logistics and the supply 
chain management. The investment was led by SoftBank's Vision Fund, which includes backers 
such as Apple Inc, Foxconn, and Saudi Arabia's Sovereign Wealth Fund.
Healthcare and biotech remain robust
Biotech and healthcare-related technologies continued to draw significant VC investment in Q2'18. 
In particular, there was considerable interest and funding for companies specializing in genetic-
sequencing-related technology for early detection of terminal diseases. 
Investors have also shown interest in the use of AI across various applications, including initial 
screening of diagnoses and pre-diagnosis of patients with certain conditions. AI is also being used 
to review images (e.g. CT scans). Companies with access to large amounts data and a proven 
ability to scale their business models can expect to be very attractive to investors moving forward.
In addition to research and AI-related technologies, there has also been more investment in 
companies that provide greater access to healthcare. A major deal in Q2'18 was the $500-million 
raise from China's WeDoctor, which provides diagnosis and online booking services. AI and health 
care  both separately and now together  are considered a national priority in China given its 
large and aging population.
AI continues to attract major capital
AI is also attracting investors across other sectors as more companies focus on integrating the 
technology into their business models. China has a distinct advantage in terms of AI development 
given its large population and massive pool of aggregated data. 
As a result, it is not surprising that China continued to pull in massive investments in AI in Q2'18. 
China-based SenseTime, which provides face, image and video recognition technology for various 
sectors, raised over $1.2 billion across two deals this quarter. At a valuation of more than 
$4.5 billion, SenseTime is now considered the world's most valuable AI startup3.
Ant Financial $14 billion funding round propels 
Asia's VC investment
3 https://www.cnbc.com/2018/05/31/sensetime-raises-more-than-one-billion-dollars-in-mere-months.html
86
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Chinese exchanges seek more start-ups; attract PE
China has been working to expand its capital markets, including developing new listing rules for its 
major stock exchanges in Hong Kong and Shanghai to attract more local companies to list at 
home4. In Q2'18, the Hong Kong Stock Exchange introduced new rule changes to encourage IPO 
exits, including allowing companies with variable voting rights to list. This move is part of Hong 
Kong's mission to turn itself into a capital markets hub for emerging and innovative Chinese 
companies. Also this quarter, the China Securities Regulatory Commission (CSRC) announced 
additional measures in Shanghai designed to attract new economy innovative businesses.5
IPOs on the rise in Hong Kong
The Hong Kong Stock Exchange appears to be picking up steam. While overall annual listing 
volumes have been declining since 2014, late 2017 and the first half of 2018 have seen increased 
activity. A number of major companies seen as potential listing candidates in the near future 
include: Lufax, WeLab, Meituan Dianping and Ant Financial. 
E-commerce exit dominates deals in India
Wal-Mart's $16-billion purchase of Indian e-commerce site Flipkart was the biggest exit for an Indian 
tech company by a long shot. VC interest in internet-driven platforms and companies continued to grow 
this quarter, particularly given the mobile-dominated marketplace in India. E-commerce players have 
been expanding their product range into areas such as logistics, e-services, and payment services. 
There has also been a proliferation of digital media companies catering to the surge in consumption of 
news, entertainment and gaming  inspired by successful models such as Amazon Prime. Overall in 
India, almost half-a-dozen first-time venture capital investors have made their debut since the beginning 
of this year, indicating growing investor interest in India's startups6. 
Despite this activity, Q2 was a slow quarter for VC investment India, with the largest VC investment 
being Capital Float ($80 million), followed by a number of much smaller deals. 
A watershed moment for Japan's VC sector
Japanese flea market app operator Mercari raised $1.2 billion in its IPO in Q2'18, representing the 
first IPO of a unicorn startup in Japan and proof that home-grown ventures in Japan can 
present outstanding return opportunities of over 100x for VC investors. The IPO was considered 
massive for a VC-backed company by Japanese standards. Traditionally, Japanese companies go 
public at earlier stages and therefore for lower valuations. The Mercari IPO, used to raise funds for 
international expansion  is expected to encourage other Japanese entrepreneurs to seek funding to 
grow beyond Japan's domestic market.
Trends to watch for in Q3'18
AI and analytics are expected to continue to drive VC activity across Asia over the next few 
quarters, with investments expected across a range of sectors, including healthcare, biotech, 
financial services, and retail. Other sectors expected to see increased investment include 
payments, virtual banking, and consumer sectors that cater to Asia's rising middle and upper class. 
We will be watching to see whether the trade tensions between China and the US lead Chinese 
investors to look for opportunities in other regions. Chinese investment in the US may also hinge 
somewhat on proposed legislation before the US Congress, which would give the government 
greater oversight over deals involving foreign investors7.
Ant Financial $14 billion funding round propels 
Asia's VC investment, cont'd.
4 https://www.caixinglobal.com/2018-03-10/shanghai-shenzhen-bourses-draft-new-rules-to-attract-tech-unicorns-101219652.html
5 https://www.scmp.com/business/china-business/article/2143158/new-listing-rules-likely-attract-dozen-applicants-first
6 https://www.dealstreetasia.com/stories/indian-startup-venture-capital-investors-98026/
7 https://www.bloomberg.com/news/articles/2018-05-16/venture-capitalists-fret-over-u-s-bill-targeting-chinese-investors
87
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in Asia
2010  Q2'18
Last quarter's edition of Venture Pulse noted it was remarkable that the region's VC ecosystem recorded 
yet another $13 billion+ tally, signifying the growing maturity of its venture capital market. Ant Financial's
jaw-dropping $14 billion could not have been foreseen, but speaks to both the maturation of the scene's 
ecosystem and its continued dominance by a handful of rapidly growing, late-stage companies.
Q2 2018 soars to unprecedented levels thanks 
to Ant Financial's massive round
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
100
200
300
400
500
600
700
800
900
$0
$5
$10
$15
$20
$25
$30
$35
$40
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
Angel/Seed
Early VC
Later VC
"During the past quarter, rule changes around the Hong Kong Stock Exchange have brought 
renewed attention and interest to potential IPOs. There is tremendous anticipation around a 
number of unicorns considering going public over the next few quarters, in particular in the area 
of fintech and biotech. Allowing companies with variable voting rights is attracting new economy 
companies to be listed in Hong Kong. Fintech and Autotech continues to receive significant 
investments and we are seeing increased attention on the biotech and retail tech."
Philip Ng
Partner, Head of Technology, KPMG China
88
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by stage in Asia
2010  2018*
Late-stage figures even out, as early-stage 
tallies edge up even higher
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
After an upsurge at the latest stage post 2014, which showed the impact of the first huge venture-backed 
successes in the Asia-Pacific region, median transaction sizes now are evening out somewhat, which is 
likely for the best as opposed to continued inflation and consequent potential overexuberance.
$0.3
$0.4
$0.3
$0.4
$0.5
$0.5
$0.5
$0.7
$1.0
$4.9
$5.0
$3.3
$3.0
$4.4
$5.0
$7.0
$6.4
$9.3
$10.0
$10.7
$9.0
$10.0
$16.0
$20.0
$16.9
$25.0
$25.6
2010
2011
2012
2013
2014
2015
2016
2017
2018
Angel/seed
Early stage VC
Later stage VC
89
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Median deal size ($M) by series in Asia
2010  2018*
Note: Select figures are rounded for legibility.
Series A figures maintain growth
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
$0.3
$0.4
$0.3
$0.4
$0.5
$0.5
$0.5
$0.7
$1.0
$3.5
$5.0
$3.5
$2.6
$4.5
$5.0
$5.0
$5.9
$7.9
$8.0
$10.0
$7.8
$7.1
$15.0
$16.4
$15.0
$15.0
$16.5
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Seed
Series A
Series B
$17.0
$20.0
$16.5
$15.0
$30.0
$35.0
$36.1
$41.7
$47.1
$50.0
$25.7
$30.0
$24.5
$60.0
$100.0
$50.0
$120.0
$121.2
2010
2011
2012
2013
2014
2015
2016
2017
2018
Series C
Series D+
90
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in Asia
2010  2018*, number of closed deals
Deal share by series in Asia
2010  2018*, VC invested ($B)
Skewed somewhat, Series C financings account 
for majority of VC invested in 2018 to date
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0
500
1,000
1,500
2,000
2,500
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Series D+
Series C
Series B
Series A
Angel/seed
91
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Software platforms remain most popular
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Asia venture financings by sector
2014  2018*, number of closed deals
Asia venture financings by sector
2014  2018*, VC invested ($B)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods
& Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014
2015
2016
2017
2018*
Commercial
Services
Consumer Goods
& Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
92
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Corporate participation in venture deals in Asia
2014  Q2'18
Corporations and their venture arms remain essential to the Asia-Pacific ecosystem on the whole. Largely 
due to how financial markets evolved within the region overall, their ongoing support and particular models 
for involvement by and large are a positive, as they encourage and inculcate entrepreneurial efforts across 
key hubs.
CVCs retain a hefty participation rate
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0%
5%
10%
15%
20%
25%
30%
35%
$0
$5
$10
$15
$20
$25
$30
$35
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014
2015
2016
2017
2018
Capital invested ($B)
% of total deal count
93
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture-backed exit activity in Asia
2010  Q2'18
A maturing market results in quarterly volatility
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
10
20
30
40
50
60
70
80
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exit value ($B)
Exit count
"The Hong Kong exchange is making some very strategic moves into the new economy. They are 
trying to position Hong Kong to be the platform for IPOs in that space. It's not just changing the 
exchange and what coming through it, but also what Hong Kong will be in the next five-to-10 years."
Egidio Zarrella
Head of Clients and Innovation Partner, KPMG China
94
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture-backed exit activity (#) 
by type in Asia
2013  2018*
Strategics still taking a breather in 2018, with 
buyout shops filling the gap somewhat
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
Venture-backed exit activity ($B) by type 
in Asia
2013  2018*
0
50
100
150
200
250
2013 2014 2015 2016 2017 2018*
Strategic Acquisition
Buyout
IPO
$0
$20
$40
$60
$80
$100
$120
2013
2014
2015
2016
2017
2018*
Strategic Acquisition
Buyout
IPO
"Mercari's IPO was a blockbuster exit by Japanese standards and is a watershed moment for 
Japan's VC sector in particular.  In addition to driving renewed VC interest in Japan, the great 
outcome for early employees will be a strong catalyst to build a more robust local angel 
ecosystem, accelerating the formation of exciting new ventures."
Paul Ford
Partner, Deal Advisory, KPMG in Japan
95
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture fundraising in Asia
2011  Q2'18
As past peaks have indicated, there can be quite a few venture funds closed within the Asia-Pacific region 
the thing is that there will be wild swings from quarter to quarter in aggregate tallies of count and capital 
raised, primarily as the ecosystem is still growing and maturing. The downturn in Q2 2018 should accordingly 
not be read overmuch into.
Fundraising volatility still suggests the regional 
VC scene has a ways to grow
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
0
5
10
15
20
25
30
35
40
45
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2011
2012
2013
2014
2015
2016
2017
2018
Capital raised ($B)
# of funds raised
96
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture fundraising (#) by size in Asia
2010  2018*
First-time vs. follow-on venture funds (#) in Asia
2010  2018*
Healthy first-time fundraising tallies suggest 
promising signs for regional ecosystem
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. *As of 6/30/18. Data provided by PitchBook, July 12, 2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
First-time
Follow-on
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Under $50M
$50M-$100M
$100M-$250M
$250M-$500M
$500M-$1B
$1B+
97
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in India
2012  Q2'18
The trend in venture volume continues to even out within India. While VC invested tallies clip along at a 
steady pace  the top two transactions in Q2 were on-demand food delivery platform Swiggy's $210 
million Series G round and insurance provider PolicyBazaar's $200 million Series F funding, both of which 
exemplify the ongoing focus on the consumer space.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Volume steadies as B2C focus remains intact
0
50
100
150
200
250
300
350
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($M)
# of deals closed
"We see a very strong positive sentiment in India where companies are aggressively looking to 
acquire capabilities rather than building in-house. It's more about 'who should I acquire?" 
Companies in the Internet/CPG/Retail/ Financial Services industries are aggressively looking for 
bolt-on strategies where they can acquire a category/capability which they can add to their 
repertoire to succeed in the market."
Sreedhar Prasad
Partner, Consumer Markets, Internet Business and Startups, KPMG in India
98
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Venture financing in China
2012  Q2'18
The sheer amount of money Ant Financial has raised is astounding, as it and it alone skews Chinese venture 
figures so handily. Per PitchBook data, the company has raised $23.4 billion since its inception, across both 
venture capital and debt. Such raises testify to just how much capital can pour into an enterprise that looks 
set to capture the massive growth potential within a given Chinese sector.
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
All about Ant Financial
"I expect Chinese capital will continue to pour into venture capital investment inside China, as well as 
across parts of Asia. Because of the trade tension between China and the U.S., some of the Chinese 
investors might be looking at opportunities outside of U.S., depending on the sectors."
Irene Chu
Partner, Head of New Economy, Hong Kong Region, KPMG China
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
$35
$40
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012
2013
2014
2015
2016
2017
2018
Capital invested ($B)
# of deals closed
99
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
China accounts for all top Asia-Pacific financings
6
3
8
5
9
2
1
10
7
4
5
4
3
2
Hellobike  $700M, Shanghai
Transportation
Series E1
SenseTime  $620M, Beijing
Artificial Intelligence
Series C
SenseTime  $600M, Beijing
Artificial Intelligence
Series C (corporate)
VIPKid  $500M, Beijing
Education & training
Series D
Byton  $500M, Nanjing
Automotive
Series B
WeDoctor  $500M, Hangzhou
Application software
Corporate
1
7
b
Source: Venture Pulse, Q2'18, Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 12, 2018.
Ant Financial  $14,000M, Hangzhou
Financial software
Series C
Weltmeister  $3,176M, Shanghai
Transportation
Late-stage VC
Pinduoduo  $3,000M, Shanghai
Internet retail
Series C
Manbang Group  $1,900M, Beijing
Transportation
Late-stage VC
Ubtech  $820M, Shenzhen
Robotics
Series C
7
a
8
6
9
10
100
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
KPMG Enterprise Innovative Startup Network. 
From seed to speed, we're here throughout 
your journey
Contact us:
Arik Speier
Co-Leader, KPMG Enterprise 
Innovative Startups Network 
E: aspeier@kpmg.com
Brian Hughes
Co-Leader, KPMG Enterprise 
Innovative Startups Network 
E: bfhughes@kpmg.com
(SAR)
101
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
About KPMG Enterprise
You know KPMG, you might not know KPMG Enterprise. 
KPMG Enterprise advisers in member firms around the world are dedicated to working with businesses 
like yours. Whether you're an entrepreneur looking to get started, an innovative, fast growing company, or 
an established company looking to an exit, KPMG Enterprise advisers understand what is important to you 
and can help you navigate your challenges  no matter the size or stage of your business. You gain 
access to KPMG's global resources through a single point of contact  a trusted adviser to your company. 
It is a local touch with a global reach. 
The KPMG Enterprise Global Network for Innovative Startups has extensive knowledge and experience 
working with the startup ecosystem. Whether you are looking to establish your operations, raise capital, 
expand abroad, or simply comply with regulatory requirements  we can help. From seed to speed, we're 
here throughout your journey.
About KPMG Enterprise
102
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
We acknowledge the contribution of the following individuals who assisted in the 
development of this publication:
Jonathan Lavender, Global Chairman, KPMG Enterprise, KPMG International 
Brian Hughes, Co-Leader, KPMG Enterprise Innovative Startups Network, and National Co-Lead Partner, 
KPMG Venture Capital Practice, KPMG in the US 
Arik Speier, Co-Leader, KPMG Enterprise Innovative Startups Network, and Head of Technology, KPMG 
in Israel 
Anna Scally, Partner, Head of Technology and Media and Fintech Lead, KPMG in Ireland
Ben van Delden, Head of AgriFood Tech KPMG in Australia
Conor Moore, National Co-Lead Partner, KPMG Venture Capital Practice, KPMG in the US
Egidio Zarrella, Head of Clients and Innovation Partner, KPMG China
Georges Gambarini, Innovation & Fundraising, Head of Innovative Startup Network, KPMG in France 
Irene Chu, Head of New Economy, Hong Kong Region, KPMG China
Lindsay Hull, Associate Director, KPMG Enterprise Global Innovative Startups Network, 
KPMG in the US
Melany Eli, Director, Marketing and Communications, KPMG Enterprise, KPMG International
Patrick Imbach, Head of KPMG Enterprise Tech Growth, KPMG in the UK 
Paul Ford, Partner, Deal Advisory, KPMG in Japan
Philip Ng, Head of Technology, KPMG China
Raphael Vianna, Director, KPMG in Brazil
Sonia Chiu, Manager, KPMG Enterprise in the UK
Sreedhar Prasad, Partner, Consumer Markets, Internet Business and Startups, KPMG in India
Sunil Mistry, Partner, KPMG Enterprise, Technology, Media and Telecommunications, KPMG in Canada
Tim Dmichen, Partner, KPMG in Germany
Acknowledgements
103
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
KPMG uses PitchBook as the provider of venture data for the Venture Pulse 
report. 
Please note that the MESA and Africa regions are NOT broken out in this report. Accordingly, if you add 
up the Americas, Asia-Pacific and Europe regional totals, they will not match the global total, as the 
global total takes into account those other regions. Those specific regions were not highlighted in this 
report due to a paucity of datasets and verifiable trends.
Fundraising
PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity 
of startup companies. In addition to funds raised by traditional venture capital firms, PitchBook also 
includes funds raised by any institution with the primary intent stated above. Funds identified as growth-
stage vehicles are classified as PE funds and are not included in this report. A fund's location is 
determined by the country in which the fund is domiciled, if that information is not explicitly known, the HQ 
country of the fund's general partner is used. Only funds based in the U.S. that have held their final close 
are included in the fundraising numbers. The entirety of a fund's committed capital is attributed to the year 
of the final close of the fund. Interim close amounts are not recorded in the year of the interim close.
Deals
PitchBook includes equity investments into startup companies from an outside source. Investment does 
not necessarily have to be taken from an institutional investor. This can include investment from individual 
angel investors, angel groups, seed funds, venture capital firms, corporate venture firms and corporate 
investors. Investments received as part of an accelerator program are not included, however, if the 
accelerator continues to invest in follow-on rounds, those further financings are included. All financings are 
of companies headquartered in the U.S.. The impact of initial coin offerings on early-stage venture 
financing as of yet remains indefinite. Furthermore, as classification and characterization of ICOs, 
particularly given their security concerns, remains crucial to render accurately, we have not detailed such 
activity in this publication until a sufficiently robust methodology and underlying store of datasets have 
been reached.
Angel/seed: PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the 
company to date and it cannot determine if any PE or VC firms are participating. In addition, if there is a 
press release that states the round is an angel round, it is classified as such. If angels are the only 
investors, then a round is only marked as seed if it is explicitly stated.
Early-stage: Rounds are generally classified as Series A or B (which PitchBook typically aggregates 
together as early-stage) either by the series of stock issued in the financing or, if that information is 
unavailable, by a series of factors including: the age of the company, prior financing history, company 
status, participating investors and more.
Late-stage: Rounds are generally classified as Series C or D or later (which PitchBook typically 
aggregates together as late-stage) either by the series of stock issued in the financing or, if that 
information is unavailable, by a series of factors including: the age of the company, prior financing 
history, company status, participating investors, and more.
Corporate: Corporate rounds of funding for currently venture-backed startups that meet the criteria for 
other PitchBook venture financings are included in the Venture Pulse as of March 2018.
Methodology
104
#Q2VC
 2018 KPMG International Cooperative ("KPMG International"). KPMG International provides no client 
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Growth equity: Rounds must include at least one investor tagged as growth/expansion, while deal size 
must either be $15 million or more (although rounds of undisclosed size that meet all other criteria are 
included). In addition, the deal must be classified as growth/expansion or later-stage VC in the PitchBook 
Platform. If the financing is tagged as late-stage VC it is included regardless of industry. 
Also, if a company is tagged with any PitchBook vertical, excepting manufacturing and infrastructure, it is 
kept. Otherwise, the following industries are excluded from growth equity financing calculations: buildings 
and property, thrifts and mortgage finance, real estate investment trusts, and oil & gas equipment, utilities, 
exploration, production and refining. Lastly, the company in question must not have had an M&A event, 
buyout, or IPO completed prior to the round in question.
Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both 
firms investing via established CVC arms or corporations making equity investments off balance sheets or 
whatever other non-CVC method actually employed.
Exits
PitchBook includes the first majority liquidity event for holders of equity securities of venture-backed 
companies. This includes events where there is a public market for the shares (IPO) or the acquisition of 
the majority of the equity by another entity (corporate or financial acquisition). This does not include 
secondary sales, further sales after the initial liquidity event, or bankruptcies. M&A value is based on 
reported or disclosed figures, with no estimation used to assess the value of transactions for which the 
actual deal size is unknown.
Agtech
PitchBook defines agtech as follows: companies that provide services, engage in scientific research, or 
develop technology which has the express purpose of enhancing the sustainability of agriculture. This 
includes wireless sensors to monitor soil, air and animal health; hydroponic and aquaponic systems; 
remote-controlled irrigation systems; aerial photo technology to analyze field conditions; biotech platforms 
for crop yields; data-analysis software to augment planting, herd, poultry and livestock management; 
automation software to manage farm task workflows; and accounting software to track and manage facility 
and task expenses. Pitchbook do not include novel foods, food delivery foodtech and food ecommerce 
solutions in their definition of AgTech.
Methodology, cont'd
kpmg.com/venturepulse [website]
@kpmg [Twitter]
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the circumstances of any particular individual or entity. Although we endeavor to 
provide accurate and timely information, there can be no guarantee that such 
information is accurate as of the date it is received or that it will continue to be 
accurate in the future. No one should act on such information without appropriate 
professional advice after a thorough examination of the particular situation. 
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