06 Feb 2020
Posted in Business Fundamentals
Early stage funding rounds dominated VC investments volume in North America during Q4 2019
Early stage funding rounds (Seed and Series A funding rounds) continued to dominate venture capital (VC) investments with 75.3% share of total investment volume during the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.
North America witnessed a total of 1,039 deals with disclosed funding worth US$18.8bn across all stages of VC investments in Q4 2019, which is a marginal decline over Q4 2018.
Early stage investments also decreased from 793 deals worth US$5.44bn in Q4 2018 to 782 deals worth US$5.70bn in Q4 2019.
Ram Kumar Montharapu, Financial Deals Analyst at GlobalData, says: “The US is a behemoth for technology start-ups and continues to be on investors’ radar.”
In Q4 2019, the US topped the region in early stage investments with 721 deals worth US$5.3bn, followed by Canada with 61 deals worth US$352.4m.
Some of the notable early stage funding rounds announced during Q4 2019 include US$275m and US$200m secured by Nuvation Bio and AgileBits in Series A funding and US$50m each secured by KYield and Alif Semiconductor in seed funding.
In Q4 2019, the Series B funding round in North America remained flat in volume terms while registering a decrease in value terms from US$4.46bn in Q4 2018 to US$3.85bn in Q4 2019.
Some of the notable Series B funding rounds announced during Q4 2019 include US$290m secured by Automation Anywhere, US$200m secured by You & Mr. Jones and US$105m secured by Instabase.
There was a marginal decline in the volume and a proportionate decrease in the value in the Series C round from 80 deals worth US$5.1bn in Q4 2018 to 79 deals worth US$4.3bn in Q4 2019.
Some of notable Series C funding rounds announced during Q4 2019 include US$319m secured by Vacasa, US$250m secured by Next Insurance and US$200m each secured by Zoox and Ripple Labs.
Other notable deals with disclosed funding rounds announced during Q4 2019 in North America include US$635m Series D funding in Bright Health, US$500m Series E funding in 1debit (Chime) and US$400m Series D funding in Convoy.