VC Financing and Exit Activity Hits Highest Levels Since 2000-2001

During Q1 2014 venture capital investment hit its highest quarterly mark since Q2 2001 driven by a host of notable mega-deals. The $9.99 billion invested across 880 deals in Q1 2014 rose 44% in funding and a 5% rise in deal activity from the same quarter last year. Valuations also soared during the record quarter as new $1B+ valuation financing rounds in the quarter were equivalent to the total number of U.S. tech companies that raised their first financing at a $1B+ valuation in all of 2013.

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On the exit front, the 35 U.S.-based VC-backed IPOs in Q1 2014 marked the highest quarterly tally for VC-backed offerings since Q3 2000. VC-backed M&A also jumped in Q1 – the 174 venture-backed mergers or acquisitions in Q1 represented 69% growth from the same quarter last year. Of the 35 VC-backed IPOs in Q1, 22 came from the healthcare sector, after seeing just 4 in Q1’13. The 13 VC-backed tech IPOs in Q1 marked the highest tally since Q1 2012 – and a 333% jump compared to same quarter last year.

35 U.S.-based VC-backed companies went public in Q1, the highest quarterly tally since Q3 2000.  VC-backed M&A also jumped in Q1 – the 174 venture-backed mergers or acquisitions in Q1 represented 69% growth from the same quarter last year.

Among the largest VC-backed exits in Q1 were Facebook’s acquisitions of Sequoia Capital-backed WhatsApp and Andreessen Horowitz-backed Oculus VR as well as the acquisition of home automation firm Nest Labs by Google. Venrock-backed Castlight Health was the largest VC-backed IPO of the quarter.Image

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