The year 2017 was a very bad year for the technology industry, exposed to the Uber crisis, the sexual harassment scandal, and the debate about network neutrality. However, Silicon Valley start-ups have not been plagued by a shortage of funds.
According to data from PitchBook and the American Venture Capital Association (AVC), the total number of US VCs in 2017 was higher than in the early 2000s.
Although the total amount of investment has risen, the number of transactions has declined. Compared with 2016, the situation is not very obvious. But if you look at the situation a few years ago, the decline in the number of transactions is very serious. (9183 in 2013, 10406 in 2014 and 10463 in 2015).
This is partly because some start-ups are waiting for longer to go public, such as Uber and Airbnb.
PitchBook analyst Nizar
As the scale of investment continues to expand, many venture capital companies are also raising larger funds. The report said 209 funds had been completed last year, with a total of $32 billion. These include IVP's 1 billion 500 million dollar fund, NEA's 3 billion 300 million dollar fund, and the 100 billion dollar softball vision Fund (up to now 98 billion yuan).
The report also states that :
In the process of the increase in US venture capital, the amount of investment in all regions of the United States has increased significantly since 2013. The area in which the traditional upwind is concentrated is the largest. For example, the west coast of the United States, including alas California, California, Hawaii, Oregon and Washington state, has increased by nearly 96% since 2013.
The Great Lakes region, including Minnesota, Weiss, Ohio, Michigan, and Indiana, is traditionally neglected areas, but it looks good at the moment. From 2013 to 2017, the total annual total of wind investment in the region increased by about 70%. Tahuby says most of the growth comes from the state of Illinois. Investment in the state has increased by 110% since 2013.
However, the south of the United States has not benefited from the trend of the rapid growth of the venture. Since 2013, the annual investment in wind investment has fallen by nearly 4%.
Because there is a lot of money on Silicon Valley, the start-up companies have no incentive to find investment exit channels, either through acquisitions or through IPO (initial public offering). The report showed that the number of companies backed by VCs dropped for third years in 2017, the lowest level since 2011. In 2017, the number of investment withdrawal pens was 769, lower than the 857 in 2016 and 1003 in 2015.
Although the number of investment withdrawal has continued to decline, the value of withdrawal is basically flat. This is partly due to a record number of investment withdrawal from unicorn in 2017, to 13. This includes Snap, Stitch Fix, Roku and Blue Apron.