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V E N T U R E C A P I T A L R E P O R T
Venture Capital Report
U . S . | 2 Q | 2 0 1 9
V E N T U R E C A P I T A L R E P O R T
VENTURE CAPITAL REPORT
The following report presents Dow Jones VentureSource’s quarterly findings for U.S. venture capital investment, fundraising, and liquidity. The
included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.
Highlights for 2Q 2019 include:
• The quarter’s 229 exits set a new record for number of liquidity events.
• Uber’s long-awaited offering helped lead a resurgence in the IPO market.
• Equity investment saw its fourth-strongest quarter on record, with $31.59 billion invested across 1,416 rounds.
• Median deal sizes surged to $8 million, the highest figure since 4Q 2000.
• VC fundraising totals dipped 23% from the previous quarter, although the number of funds was the highest in 18 years.
2
V E N T U R E C A P I T A L R E P O R T
VC GOLD RUSH CONTINUES IN 2Q WITH FOURTH-HIGHEST QUARTERLY HAUL ON RECORD
VC-backed startups enjoyed yet another quarter of very
robust investment activity, with $31.59 billion raised in
1,416 deals. While funding dipped slightly from 1Q, it still
ranks as the fourth-largest quarter on record. Just as
significantly, the number of deals reversed its year-long
decline and rose 7% from the previous quarter. Taken
together, these metrics paint a picture of a thriving VC
ecosystem that has facilitated an ongoing “golden age”
for U.S. tech companies.
The top deal of the quarter went to GM Cruise, which
received growth equity financing of $1.15 billion at a
valuation of $19 billion in May. The company, a
subsidiary of GM, is developing a self-driving ride-share
service.
3
FINANCING
Equity Financings in U.S.-Based,
VC-Backed Companies (2016–2019)
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Amount Raised ($B) $19.58$19.24$14.41$20.74$21.84$23.87$22.73$27.57$30.02$32.75$44.23$32.06$31.59
Number of Deals 1372 1440 1297 1501 1552 1511 1392 1654 1651 1551 1494 1324 1416
0
200
400
600
800
1000
1200
1400
1600
1800
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
V E N T U R E C A P I T A L R E P O R T
TOP ROUNDS FOR VC-BACKED COMPANIES (2Q 2019)
4
FINANCING
Company Name Location Industry Code Industry Segment Industry Group Brief Description Close Date Round Type Raised ($M)Round Investors
(* denotes lead)
GM Cruise LLC
(Cruise)
San
Francisco, CAAutomobiles
Vehicles and
Parts
Consumer
Goods
Developer of a
fully self-driving
ride-share service.
5/7/2019Growth
Equity$1,150.00
T. Rowe Price Group Inc.; SoftBank Vision Fund;
Honda Motor Co. Ltd.; General Motors
DoorDash Inc.San
Francisco, CA
Restaurants/
Food Service
Travel and
Leisure
Consumer
Services
Provider of an on-
demand delivery
service that
connects
customers with
local businesses.
5/23/2019 VC 8th $600.00
Temasek Holdings Pvt. Ltd.; SoftBank Vision Fund;
Sequoia Capital; Sands Capital Management; DST
Global; Dragoneer Investment Group; Darsana
Capital Partners; Coatue Management LLC
UiPath Inc. New York, NY
Business
Applications
Software
SoftwareInformation
Technology
Provider of robotic
process
automation
software.
4/30/2019 VC 4th $568.00
Wellington Partners; T. Rowe Price Group Inc.;
Sequoia Capital; Sands Capital Management;
Madrona Venture Group Inc.; IVP; Dragoneer
Investment Group; Coatue Management LLC*;
CapitalG; Accel Partners
Space
Exploration
Technologies
Corp. (SpaceX)
Hawthorne,
CA
Satellites/
Spacecraft
Aerospace and
Defense
Industrial
Goods and
Materials
Provider of space
launch services.4/11/2019
Other
Equity$535.74 Ontario Teachers' Pension Plan Board
Social Finance
Inc. (SoFi)
San
Francisco, CALending
Financial
Institutions and
Services
Business
and
Financial
Services
Provider of lending
and student loan
refinancing
services.
5/29/2019 VC 9th $500.00 Qatar Investment Authority*
V E N T U R E C A P I T A L R E P O R T
IT, BUSINESS SERVICES, AND HEALTHCARE SPLIT LION’S SHARE OF VC FUNDING IN 2Q
IT companies seized the largest portion of VC deals and dollars in
2Q, with $8.68 billion across 454 rounds. UiPath had the top deal in
this sector, raising $568 million. The company provides robotic
process automation software.
Companies in the Business & Financial Services group came in
second place, securing $7.23 billion in 317 deals. San Francisco-
based Social Finance (SoFi) took the largest round in this space,
with a $500 million 9th round to fund its student loan refinancing
services.
The Healthcare sector followed closely behind, raising $6.87 billion
across 305 deals. Century Therapeutics, a Philadelphia-based
developer of immune effector cell products, secured the top
financing in this sector.
5
FINANCING
Industry
Breakdown
By Number
of Deals
Industry
Breakdown
By Amount
Raised ($B)
317
80
188
17305
49
454
Business & Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
23%
9%
14%
1%22%
4%
27%
Business & Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
V E N T U R E C A P I T A L R E P O R T
MOST ACTIVE INVESTORS FOR U.S.-BASED, VC-BACKED COMPANIES (2Q 2019)
6
FINANCING
27
25
22
18 18
1615 15
14 14
0
5
10
15
20
25
30
Y Combinator New EnterpriseAssociates Inc.
GV Andreessen Horowitz Lightspeed VenturePartners
Tiger GlobalManagement LLC
Innovation Works Inc. Kleiner PerkinsCaufield & Byers
Founders Fund LLC Kairos SocietyVentures
V E N T U R E C A P I T A L R E P O R T
NUMBER OF DEALS/AMOUNT RAISED BY METRO REGION (2Q 2019)
7
FINANCING
Metro Region Breakout
Number of Deals
Metro Region Breakout
Amount Raised ($B)
12
21
26
35
40
42
44
55
96
202
494
Dallas-Fort Worth
Orange County
Chicago
Austin
San Diego
Potomac
Seattle
Los Angeles
Boston
New York
San Francisco Bay Area
Number of Deals by Metro Region
$0.29
$0.35
$0.36
$0.48
$0.51
$0.88
$0.89
$1.38
$2.31
$4.56
$14.45
Dallas-Fort Worth
Orange County
Austin
Chicago
Potomac
Seattle
San Diego
Los Angeles
Boston
New York
San Francisco Bay Area
Amount Raised ($B) by Metro Region
V E N T U R E C A P I T A L R E P O R T
NUMBER OF DEALS/AMOUNT RAISED BY PRIMARY REGION (2Q 2019)
8
FINANCING
Number of
Deals by
Primary Region
Amount Raised
($B) by Primary
Region
Number of Deals
by Primary Region
299
20
78
83
103
498
56
64
94
119
Mid-Atlantic
Midwest Central
Midwest East
Mountain
New England
Northern California
Pacific Northwest
South Central
South East
Southern California
Amount Raised ($B)
by Primary Region
$5.71
$0.19
$1.28
$1.12
$2.35
$14.53
$1.01
$0.94
$1.80
$2.64
46%
18%
8%
7%
6%
4%4%
3%3%
1% Northern California
Mid-Atlantic
Southern California
New England
South East
Midwest East
Mountain
Pacific Northwest
South Central
Midwest Central
35%
21%
8%
7%
7%
6%
6%
5% 4%1%
Northern California
Mid-Atlantic
Southern California
New England
South East
Mountain
Midwest East
South Central
Pacific Northwest
Midwest Central
V E N T U R E C A P I T A L R E P O R T
MEDIAN DEAL SIZE FOR EQUITY FINANCINGS IN U.S. COMPANIES
9
FINANCINGMedian Equity Deal Size ($M)
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Median Equity Deal Size ($M) $4.00 $4.00 $4.10 $4.25 $5.00 $4.54 $5.18 $5.06 $6.00 $5.50 $6.00 $6.19 $8.00
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
V E N T U R E C A P I T A L R E P O R T
Number of Deals
COUNT OF EQUITY FINANCINGS IN U.S. COMPANIES, BY ROUND CLASS
1 0
FINANCING
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Seed 107 127 128 159 185 175 165 183 201 182 143 93 117
First 378 386 351 357 386 315 285 351 395 317 364 327 366
Second 239 215 197 234 217 234 200 247 234 224 178 216 209
Later 413 459 372 436 405 413 401 479 461 452 445 391 447
Restart 4 4 1 6 2 4 0 2 0 4 0 2 2
0
50
100
150
200
250
300
350
400
450
500
V E N T U R E C A P I T A L R E P O R T
Amount Raised ($B)
AMOUNT RAISED IN U.S. COMPANIES, BY ROUND CLASS
1 1
FINANCING
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Seed $0.22 $0.17 $0.23 $0.35 $0.43 $0.40 $0.40 $0.47 $0.54 $0.54 $0.51 $0.30 $0.46
First $2.45 $3.25 $2.34 $3.47 $3.43 $2.47 $3.63 $4.48 $4.24 $4.99 $5.14 $3.37 $4.53
Second $2.86 $2.51 $2.12 $4.14 $3.34 $3.79 $3.22 $4.95 $3.65 $4.92 $3.01 $7.71 $4.32
Later $9.43 $11.60 $7.54 $10.06 $12.56 $14.31 $13.22 $14.92 $18.53 $17.80 $17.96 $13.65 $18.72
Restart $0.04 $0.55 $0.01 $0.08 $0.06 $0.04 $0.00 $0.03 $0.00 $0.04 $0.00 $0.02 $0.12
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
V E N T U R E C A P I T A L R E P O R T
U.S. FUNDRAISING COOLS IN 2Q
1 2
FUNDRAISING
U.S. VC Fundraising (2016–2019)
Based on multiple closings
VC fundraising dipped 23% in 2Q, with $12.4 billion
raised across 156 funds. Interestingly, the number of
funds was the largest in any quarter since 2001.
The largest fund of the quarter was Andreessen Horowitz
LSV Fund I LP, which clocked in at $2.2 billion. This
single fund represented 18% of the total for 2Q.
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Amount Raised ($B) $11.91 $8.94 $10.24 $8.27 $14.86 $9.90 $6.01 $9.02 $17.19$13.16$16.79$16.17$12.40
Number of Funds 116 110 134 154 145 116 129 144 150 150 140 146 156
0
20
40
60
80
100
120
140
160
180
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
V E N T U R E C A P I T A L R E P O R T
TOP U.S. VC FUND CLOSINGS IN 2Q 2019
1 3
FUNDRAISING
Firm Name Fund Name
Amount
($M) Closed
in 1Q
Location Offering Status Fund Type Closing Type
Andreessen HorowitzAndreessen Horowitz
LSV Fund I LP$2,199.30 Menlo Park, CA Closed
Late-Stage
Venture CapitalFinal
Andreessen HorowitzAndreessen Horowitz
Fund VI LP$824.70 Menlo Park, CA Closed
Early-Stage
Venture Capital Final
Third Rock Ventures LLC Third Rock Ventures V $770.00 Boston, MA ClosedEarly-Stage
Venture CapitalFinal
Vivo Capital Vivo Capital Fund IX LP $417.00 Palo Alto, CA OpenMulti-Stage
Venture CapitalFirst
B Capital Group B Capital Fund II LP $406.09Manhattan
Beach, CAOpen
Multi-Stage
Venture CapitalFirst
V E N T U R E C A P I T A L R E P O R T
VC INVESTORS HIT JACKPOT WITH LARGEST NUMBER OF EXITS ON RECORD
Both IPO and M&A activity surged in 2Q with 229
exits, giving VCs and their portfolio companies their
most active quarter on record for liquidity (dating
back to 1992). For IPOs, it was the largest number
since 2Q 2015 and for M&As it was the largest since
4Q 2010.
1 4
LIQUIDITY
Exit Opportunities for U.S. VC–Backed Companies (2016–2019)
0 50 100 150 200 250
2Q'16
3Q'16
4Q'16
1Q'17
2Q'17
3Q'17
4Q'17
1Q'18
2Q'18
3Q'18
4Q'18
1Q'19
2Q'19
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
IPOs 11 14 10 7 21 7 25 16 30 22 14 10 31
M&As 164 173 164 171 160 174 178 176 181 177 192 176 198
V E N T U R E C A P I T A L R E P O R T
M&A MARKET SHOWS CONTINUED STRENGTH IN 2Q
The M&A market surged in 2Q, with buyers paying
$34.45 billion across 198 deals. While the amount paid
did not match the recent 4Q high, it still ranked as the
7th largest on record. The number of deals was the
highest in 9 years.
The largest deal of the quarter was
Google’s acquisition of Looker Data Sciences for $2.6
billion.
1 5
LIQUIDITY
U.S. VC-Backed M&A Activity (2016–2019)
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Amount Paid ($B) $26.66 $36.36 $31.27 $23.16 $19.93 $20.77 $25.93 $30.23 $36.65 $28.82 $37.37 $27.67 $34.45
Number of M&As 164 173 164 171 160 174 178 176 181 177 192 176 198
0
20
40
60
80
100
120
140
160
180
200
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
V E N T U R E C A P I T A L R E P O R T
TOP U.S. VC-BACKED M&As IN 2Q 2019
1 6
LIQUIDITY
Company Name Location Brief Description Industry Code Industry Segment Industry Group Close DateAmount
Paid ($M)Acquirer
Looker Data
Sciences Inc.*Santa Cruz, CA
Provider of a web-based
business intelligence
software.
Business
Applications
Software
SoftwareInformation
Technology6/6/2019 $2,600.00 Google LLC
Harry's Inc.* New York, NYProvider of shaving
products for men.
Personal Care
ProductsPersonal Goods Consumer Goods 5/9/2019 $1,370.00
Edgewell Personal
Care Co.
Paragon
Bioservices Inc.Baltimore, MD
Provider of contract-
research and
manufacturing services
for pharmaceutical
companies.
Drug Development
TechnologiesBiopharmaceuticals Healthcare 4/15/2019 $1,200.00 Catalent Inc.
Peloton
Therapeutics Inc.*Dallas, TX
Developer of small
molecule cancer
therapies.
Biotechnology
TherapeuticsBiopharmaceuticals Healthcare 5/21/2019 $1,050.00 Merck & Co. Inc.
Recorded Future
Inc.Somerville, MA
Provider of threat
intelligence and
predictive analytics
solutions.
Network/Systems
Management
Software
SoftwareInformation
Technology5/30/2019 $780.00
Insight Venture
Partners LLC
*Deal pending regulatory approval
V E N T U R E C A P I T A L R E P O R T
THANKS TO UBER, IPO MARKET ROARS BACK TO LIFE
Just when things were looking dicey, the IPO market
roared back to life in spectacular fashion in 2Q, with
$13.88 billion raised through 31 offerings. Uber’s long-
awaited IPO in May comprised 58% of this total, raising
$8.1 billion at a valuation of $77.65 billion.
Even without Uber’s offering, the quarter’s total would
have ranked as the best in 7 years.
1 7
LIQUIDITY
U.S. VC-Backed IPO Activity (2016–2019)
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Raised ($B) through IPO $0.79 $1.07 $0.94 $3.95 $2.35 $0.58 $3.10 $1.75 $4.69 $2.32 $2.40 $3.34 $13.88
Number of IPOs 11 14 10 7 21 7 25 16 30 22 14 10 31
0
5
10
15
20
25
30
35
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
V E N T U R E C A P I T A L R E P O R T
TOP U.S. VC-BACKED IPOs IN 2Q 2019
1 8
LIQUIDITY
Company
Name Location
Brief
Description
Industry
Code
Industry
Segment
Industry
Group
Close
Date
Raised
through IPO
($M)
Exchange
Uber
Technologies
Inc.
San Francisco,
CA
Provider of on-demand
ride-sharing and food
delivery services.
Transportation
ServicesTravel and Leisure
Consumer
Services5/10/2019 $8,100.00
NYSE:
UBER
Pinterest Inc.San Francisco,
CA
Provider of a virtual
pinboard.
Online
Communities
Consumer
Information
Services
Consumer
Services4/18/2019 $1,425.00
NYSE:
PINS
CrowdStrike
Holdings Inc.Sunnyvale, CA
Provider of cloud-
delivered endpoint
security technology.
Network/Systems
Management
Software
SoftwareInformation
Technology6/12/2019 $612.00
Nasdaq:
CRWD
Zoom Video
Communications
Inc.
San Jose, CA
Provider of a
communications and
conferencing platform.
Communications
SoftwareSoftware
Information
Technology4/18/2019 $356.81
Nasdaq:
ZM
BridgeBio
Pharma Inc.Palo Alto, CA
Developer of treatments
for genetically-driven
diseases.
Biotechnology
TherapeuticsBiopharmaceuticals Healthcare 6/26/2019 $348.50
Nasdaq:
BBIO
V E N T U R E C A P I T A L R E P O R T
ABOUT US
Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers, and service providers find deal and
partnership opportunities, perform comprehensive due diligence, and examine trends in venture capital investment, fundraising, and liquidity. It
provides accurate, comprehensive data on venture-backed companies – including their investors and executives – in every region, industry, and
stage of development throughout the world.
The investment figures included in this release are based on aggregate findings of Dow Jones' proprietary research and are contained in
VentureSource. This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources.
These venture capital statistics cover institutional equity investments in early stage, innovative companies and do not include companies receiving
funding solely from corporate, individual, and/or government investors. Figures contained throughout the report are current at the time of publication
but are subject to change without notice.
No statement herein is to be construed as a recommendation to buy or sell securities or to provide investment advice.
1 9
V E N T U R E C A P I T A L R E P O R T
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