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Venture capital investment is thriving around the world. During Q2-2015 alone, there was over $32 billion raised worldwide across 1,819 deals. A number of factors are driving this activity, including low interest rates compelling investors to seek avenues of greater return, strong participation by corporate investors, and new capital sources including hedge funds, mutual funds and sovereign wealth funds. Taken together, these factors mean that VC-focused investment capital is more available than ever before. Numerous disruptive technologies and applications are also spurring interest and investment from the VC community. The growth of new on-demand platforms continues to be particularly robust. This trend, which escalated with Uber and Airbnb, is now expanding into new verticals and well beyond North America. Access to investment and stronger investor interest, combined with a trend towards late stage mega-rounds means companies are staying private longer and growing to an immense size. Already this year, 35 venture capital backed companies have achieved billion-dollar valuations, including Lyft, Domo Technologies, Zomato Media and BeiBei. While many analysts are predicting a slight decrease in venture capital investment in the months ahead, we believe the strength of such fundamental growth drivers have created strong conditions for continued VC investment. Even with a possible slowdown, 2015 is shaping up to be a record year.
Source : KPMG
