How Global Startup Funding Fared in Q2– 10 Points You Need to Know!A joint report by KPMG International and CB Insights, startup funding showed some interesting facts about deal activity in Asia and across the globe

BySneha Banerjee

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock
Hong Kong skyline

A jointreportpublished by KPMG International and CB Insights, startup funding showed some interesting facts about deal activity in Asia and across the globe. Following are some key points -

  • More Seed deals in Asia - Asian seed deal share rose to a 5-quarter high of 39% in Q2'16, up from 33% the quarter prior. In absolute terms, seed deals held relatively steady from Q1'16, while most other stages fell
  • North American lull - After a slight uptick in deal activity in Q1'16, North America saw another sharp drop in Q2'16, with just 1117 deals into VC-backed companies.
  • Second quarter of saw venture capital funding activity rise slightly following 2 quarters of declines, while deal activity fell for the fourth consecutive quarter.
  • Large rounds by companies like Uber, Snapchat and Didi Chuxing helped buoy investment despite the ongoing decline in the number of deals.
  • The Brexit referendum in the UK caused many investors to hold back from making significant investments, over the quarter, specifically in the UK
  • The upcoming US presidential election, the potential increase in US interest rates, and an economic slowdown in China also added to investor caution.
  • Deal activity had already slowed noticeably in Q4'15 and Q1'16 but global financings dropped a further 6% in Q2'16, down to 1886. Deal count fell in both Asia and North America, though it rose slightly in Europe.
  • 2015年投资者很多100美元+检查写入private tech companies thanks to crossover investors, corporates and other-deep pocketed investors entering private markets. 2016 has seen that trend cool significantly, with North America seeing just 14 $100M+ rounds in Q2'16 compared to 37 in Q3'15.
  • IPO exits remained low in Q2'16. Given the retrenchment in share prices among tech companies in 2015, many companies are holding off from considering an IPO or are looking at M&A as an attractive exit strategy. Of the 10 biggest IPOs in 2015, approximately two-thirds are now trading below their offering price.
  • VC investment in North America is likely to remain uneven heading into Q3, as market uncertainties such as the US presidential election continue to drive uncertainty.

Wavy Line
Sneha Banerjee

Entrepreneur Staff

Former Staff, Entrepreneur India

She used to write for Entrepreneur India from Bangalore and other cities in South India.

Related Topics

领导

From Indore to BSE

EKI's journey began in 2008 as a start-up initiative in Indore and it is now present in 17 countries around the world.

Thought Leaders

So, You've Been Hacked. These are the Best Practices for Business Leaders Post-Hack

The lasting effects of a cyber incident can impact an organization's reputation, customers, workforce, databases and network architecture.

Science & Technology

Become an Ethical Hacking and Cybercrime Expert

This 10-course bundle can give you the cybersecurity skills you need to level up your IT career.

Thought Leaders

I Pitched 300 People a Day For 1 Year — and Learned This Impactful Entrepreneurial Lesson

After working myself to the bone pitching 300 people each day for one year, I came out of that experience as a new man — but surprisingly, an unhappier one. Here's what I learned.