Early stage deals catch investor attention during Q3 2019, finds GlobalData

Early stage funding rounds (Seed and Series A funding rounds) continued to dominate venture capital (VC) investments with 69.6% share of total investment volume during the third quarter (Q3) of 2019, according to GlobalData, a leading data and analytics company.

All the three months in Q3 witnessed announcement of highest number of deals with Series A funding rounds. On the other hand, late stage funding rounds such as Series H, Series I and Series J were fewer in number compared to early stage deals but much larger in average deal value.

The US accounted for 32% of total early stage funding volume and 35.4% of growth/expansion/late stage funding (comprising Series B, Series C, Series D, Series E, Series F, Series G, Series H, Series I and Series J). It was followed by China, which accounted for 24.8% of early stage funding volume and 29.8% of growth/expansion/late stage funding volume in Q3 2019.

Other key countries that attracted significant number of early stage funding during Q3 2019 included India, the UK, South Korea, Singapore, Canada, Australia, Germany and France.

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A total of 815 deals with disclosed funding rounds were announced in July 2019, out of which early stage funding deals accounted for 69.4% share.

The US and China retained the top two positions by early stage funding volume accounting for 33.6% and 22.1% share during the month, respectively.

Some of the notable early stage funding rounds announced during the month included US$200m Series A funding raised by the US-based OneTrust; US$131m Series A funding raised by Chinese firm Lepu Biotech; US$105m Series A funding raised by the US-based Kronos Bio; and US$100m Series A funding raised by Japan’s Tier IV.

In August 2019, VC investments with disclosed funding rounds declined by 11.3% as compared to the previous month primarily due to decrease in the number of seed and Series B funding rounds.

Early stage funding deals accounted for 68.6% share of the total deals announced during the month. The US registered the highest number of early stage funding rounds with 31.7% share, followed by China with 29.2% share.

Some of the notable early stage funding rounds announced during the month included US$72m Series A funding secured by the US-based Webflow; US$70.8m Series A funding raised by Chinese firm JACKPET; US$65m Series A funding raised by Canadian firm Chinook Therapeutics; and US$51.8m Series A funding raised by China-based Leap Motor.

September 2019 witnessed 10.4% increase in VC investments with disclosed funding rounds compared to the previous month, primarily due to growth in the number of Series A funding rounds.

Early stage funding deals accounted for 70.8% share of the total deals announced during the month. The US registered the highest number of early stage funding rounds with 30.8% share, followed by China with 23.5% share.

Some of the notable early stage funding rounds announced during the month included US$300m Series A funding raised by Chinese firm Chenghome Apartment (Chengjia Apartment); US$200m Series A funding raised by the US-based Mission Lane; US$66m Series A funding raised by Swiss firm Unicyte; and US$50m Series A funding raised by China-based MOTI.

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