VC deals to US-based, VC-backed companies see
quarterly increase but are down 18% YoY in Q2’20
Deal activity sees 3% quarterly rise in Q2’20: 1,374 US
deals take place in Q2’20, up from 1,336 in Q1’20. Despite
the quarterly increase, Q2’20 deals fall 18% YoY. US-based,
VC-backed companies raise $26.9bn in Q2’20, down less
than 1% from Q1’20. YTD funding and deal activity decline
7% and 16% YoY, respectively.
Number of quarterly mega-rounds hits a new record: 69
companies raise rounds worth $100m or more in Q2’20,
while mega-round deal share is relatively flat at 45%.
IPO exits jump while M&A activity falls in the pandemic: After
three quarters of declines, 24 US-based, VC-backed
companies exit in IPOs in Q2’20, up from 15 in Q1’20. On
the other hand, M&A activity sees sharp declines, falling to
120 exits in Q2’20 vs. 155 in Q1’20.
Unicorn births decline for fourth consecutive quarter: There
are 11 new US VC-backed private companies valued at $1bn+
in Q2’20. The total number of unicorns reaches 209 in Q2’20.
Global deal activity increases, funding declines in Q2’20
North America, Asia, and Europe see combined funding
of $49bn in Q2’20: Globally, deal activity rebounds in Q2'20
to 3,812 deals, while funding decreases to $50.2bn. Funding
and deals are down 13% and 9% YoY, respectively.
Asia sees the largest quarterly increase in deals among
geographies, rising 20% in Q2'20: Quarterly deal activity in
Europe rises 9% in Q2'20, compared to 3% in North America.
San Diego and Washington DC Metro areas hit 8-quarter
highs for funding activity: San Diego Metro quarterly funding
hits a 2-year high at $1.2bn led by three mega-rounds. VC-
backed startups based in the Washington DC Metro raise
$700m in Q2’20, also a 2-year high.
Quarterly funding in Silicon Valley dips 7% in Q2'20 to
$11.7bn, while deal activity rises 11% to 432 deals: Three of
the top five largest deals in the US go to Silicon Valley-based