Welcome to the Q1’2017 edition of KPMG’s Venture Pulse Report, highlighting the current trends, opportunities and challenges faced by the venture capital (VC) market, both globally and in key regions around the world. This edition takes a close look at some of the key events in the first quarter and anticipate trends and opportunities in venture capital investing for the remainder of the year.
Caution tempered investor activity throughout Q1, continuing the trend from Q4’16. Global investor activity remained steady, if down from the highs seen in 2015 and 2016, with numbers buoyed by large deals in the US and Asian markets. The total number of deals continued to decline.
The first quarter saw a continued focus on safer bets, resulting in longer decision cycles and increased attention on late-stage deals in most markets worldwide. In a related trend, Q1 has seen a continued concentration of capital in a smaller number of large VC funds, especially in the US and Europe, as investors reduce their risk exposure by focusing on a broader range of investments over a long fund lifespan. Angel and seed investment remained down in most global markets, with new startups needing to demonstrate more than a visionary idea to gain investor backing.
Source : KPMG