VC deal volume in Q1 ‘19 continues to fall across all regions

Global VC investment drops in Q1 2019. Source: shutterstock.com

Overall venture capital (VC) investment dropped from record heights of $71 billion in Q4’18 to $53 billion in Q1’19, due to a decline in Chinese investment, among other factors. While US and European investment remained relatively robust quarter over quarter, Chinese VC fell from $10.1 billion in Q4’18 to $5.8 billion in Q1’19, as megadeals took a pause, according to the Q1’19 edition of KPMG Enterprise’s?Venture Pulse?report.

Globally, VC deal volume declined for the fourth consecutive quarter with only 2,657 deals – representing the lowest number in 31 quarters – since Q2’11. The continued decline in deal volume was felt in every region, but was particularly pronounced in Europe – which saw deal volume drop from 882 deals in Q4’18 to 487 deals in Q1’19.

Key Q1 ’19 Highlights

• The largest deals for the quarter included a $5 billion investment in New York-based The We Company and a $4.5 billion investment in Singapore’s Grab Taxi.
• In Q1’19, the United States saw continued strength in deal value, reaching $32.6 billion – the second highest quarterly total in the past 7 years. Venture investment in the Americas also remained strong.
• VC investment in Asia fell dramatically this quarter, from $16.9 billion in Q4’18 to only $13 billion in Q1’19 – representing the lowest quarterly total since Q1’17. Deal volume also continued a downward spiral that began in Q3’18.
• European VC investment remained strong, powered by 10 deals at or over $125 million in value. However, deal volume plummeted from 882 deals in Q4’18 to only 487 in Q1’19

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