06 Feb 2020
Posted in Business Fundamentals
Seed and Series A funding rounds registered highest share of global VC investment volume and value in Q4 2019
Seed and Series A funding rounds accounted for a 38.3% and 24.4% share of global venture capital (VC) funding volume and value in the fourth quarter (Q4) of 2019, which is the highest among all funding rounds, according to GlobalData, a leading data and analytics company.
Early stage funding rounds (Seed and Series A funding rounds) continued to dominate VC investments with a 74.7% share of total investment volume during Q4 2019.
On the other hand, late stage funding rounds such as Series E, Series F, Series G and Series H were fewer in number compared to early stage deals but much larger in average deal value.
A total of 2,753 deals (with disclosed funding rounds) worth US$45.5bn were announced during Q4 2019 compared to 2,325 deals during Q4 2018 that were worth US$39.2bn.
The US accounted for 43.8% of total early stage funding volume and 42.4% of growth/expansion/late stage funding (comprising Series B, Series C, Series D, Series E, Series F, Series G and Series H). It was followed by China, which accounted for 14.7% of early stage funding volume and 23.5% of growth/expansion/late stage funding volume in Q4 2019.
Other key countries that attracted a significant number of early stage funding during Q4 2019 included the UK, India, Germany, Canada, France, Japan, Israel and South Korea.
Growth/expansion/late stage funding accounted for around 70% of funding value in Q4 2019. China’s share of the capital raised through these rounds accounted for approximately 64%, followed by India with approximately 26%.
Other key countries that raised notable funding during Q4 2019 included Japan, Hong Kong, Indonesia, Australia and South Korea.