By Donald Zuhn --
Earlier this year, the National Venture Capital Association (NVCA), a trade association representing the U.S. venture capital industry, released the results of its Pitchbook NVCA Venture Monitor report on venture funding for the first quarter of 2018, noting that venture funding is on pace to experience another record-breaking year in 2018. NVCA President and CEO Bobby Franklin noted that "[t]he first quarter of 2018 picked up right where 2017 left off, with the largest amount of capital deployed into venture-backed companies in a single quarter since 2006, marking a very strong start to venture investment this year."
With respect to the first quarter, the report indicates that venture capitalists invested $28.2 billion in 1,683 deals, which marked the fourth consecutive quarter of more than $20 billion deployed to venture-backed companies (charts from Pitchbook NVCA Venture Monitor report for 1Q 2018; click to enlarge charts).
Interestingly, venture funding for the first quarter of 2018 surpassed venture funding for all of 2009.
With respect to venture funding by sector, the software sector once again surpassed all other sectors, securing almost 40% of venture funding in the first quarter of 2018. The pharmaceutical and biotechnology sector and healthcare (HC) devices and supplies sector secured 8% and 6.2%, respectively, of venture funding in the first quarter of 2018.
The life sciences sector (which combines pharma and biotech and HC devices and supplies), like total venture funding, also appears to be on a record pace for 2018. If the sector can maintain its first quarter pace, it could surpass in only two quarters annual funding totals posted for 2008-2013.
The 14.2% share of venture funding that the life sciences sector secured in the first quarter of 2018 also marked a continued increase in funding share for the sector.
For additional information regarding this and other related topics, please see:
• "Third Quarter Venture Funding Remains Strong," December 18, 2017
• "First Quarter Venture Funding Bounces Back from Fourth Quarter Low," May 31, 2017
• "Venture Funding Normalizes in 2016 After Strong First Half," February 8, 2017
• " Second Quarter Venture Funding Increases 20% from First Quarter," October 11, 2016
• "Venture Funding Reaches Highest Level in More Than a Decade," February 25, 2016
• "Third Quarter Venture Funding Declines 27% from Second Quarter," October 22, 2014
• "Software Sector Leads Pack in 2Q Venture Funding and Biotech Sector Finishes Second," July 20, 2014
• "Software Sector Leads First Quarter Venture Funding to Thirteen Year High; Biotech Sector Finishes Second (Again)," April 30, 2014
• "Biotech Venture Funding Rebounded in 2013 After Strong Fourth Quarter," January 26, 2014
• "Biotech Venture Funding Sees Second Quarter Rebound," July 22, 2013
• "Biotech Venture Funding Down 33% in First Quarter," April 30, 2013
• "Annual Venture Funding Drops for First Time in Three Years," February 4, 2013
• "Biotech Venture Funding Up 64% in Third Quarter," October 29, 2012
• "Venture Funding in Life Sciences Sector Drops 9% in Second Quarter," July 22, 2012
• "Biotech Venture Funding Drops 43% in First Quarter," May 3, 2012
• "Venture Funding Increased 22% in 2011," February 2, 2012
• "Life Sciences Venture Funding Drops in Third Quarter," October 27, 2011
• "Life Sciences Venture Funding up 37% in Second Quarter," August 1, 2011
• "VentureSource Reports 35% Increase in 1Q Venture Funding," April 26, 2011
• "NVCA Reports Modest Gains in First Quarter Venture Funding," April 19, 2011
• "NVCA Reports 31% Drop in Venture Funding for Third Quarter," October 17, 2010
• "NVCA Reports 34% Increase in Venture Funding for Second Quarter," July 22, 2010
• "NVCA Report Shows First Quarter Drop in Venture Funding," April 20, 2010
• "Biotech/Pharma Financing Improving, R&D Spending Up," August 31, 2009
• "NVCA Study Shows Increase in Third Quarter Venture Funding," October 23, 2009
• "First Quarter Venture Capital Funding at 12-Year Low," April 23, 2009
• "NVCA Study Shows Decline in 2008 Investment; BIO Study Predicts Biotech Rebound in 2009," February 16, 2009
Comments