U.S. Venture Capital Pacing for Another Record-Breaking Year in 2018

SEATTLE, WA – Investment into venture capital companies is already on pace to experience another record-breaking year in 2018, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity.

Coming off multiple years of record fundraising, just over $8 billion raised in 1Q 2018, a slight decline from previous quarters. Despite the slow start, several billion-dollar mega-funds have since been announced, which are expected to boost fund size and count as 2018 unfolds. The sustained momentum in venture fundraising has continued to fuel ramped dealmaking.

“The first quarter of 2018 picked up right where 2017 left off, with the largest amount of capital deployed into venture-backed companies in a single quarter since 2006, marking a very strong start to venture investment this year,” said Bobby Franklin, President and CEO of NVCA.

“As we look ahead to the rest of the year, 1Q appears to be indicating a strengthening exit environment, which would bring liquidity to LPs and could lead to an uptick in fundraising, and in turn lead to even higher levels of investment activity. All of which means that venture investors are well-poised in 2018 to continue investing in and supporting the growth of young, innovative companies that strengthen the U.S. economy.”

“The venture industry is poised to continue its healthy pace of dealmaking, especially when combined with the increased participation of non-traditional investors and the boost in pre-seed capital. The IPO market is particularly intriguing with several mature, cash efficient businesses gearing up for a public debut. We expect these players will be well received in the public markets.”

Despite the overall decline in capital raised and fund count, fundraising is expected to gain momentum in 2018 on the heels of several $1 billion-plus funds closed in the first quarter and more in the pipeline.

As we see 2019 progressing REO Capital has seen a continued momentum in Fundraising in the US VC Market for funds below the $1 billion size.

Article written by NVCA and Pitchbook.

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