Startup Funding Shows Signs of New Tech Bubble
Over the past few days two venture capitalists in the United States have expressed their worries about the current state of the US startup community. In essence, both are saying that startups are burning through too much cash and that the overall amount of risk currently taken on in Silicon Valley is excessive. It’s not the first time people have warned about a new tech bubble, but are the concerns justified?
A look at the data seems to suggest so: according to Thomson Reuter data published by PricewaterhouseCoopers, venture capital funding in the U.S. amounted to $12.97 billion in Q2 2014, which is by far the highest level it’s been at since Q1 2001. Compared to the second quarter of last year, VC funding jumped 81% in Q2, representing the highest year-over-year increase since Q3 2000 when VC funding reached its historical peak. Interestingly the number of VC deals hasn’t increased as much as the total amount that was invested, indicating that the average value per deal must have increased. And indeed it has: at $11.64 million the average value per deal was as high in Q2 2014 as it’s last been in Q4 2000.
While these numbers do not necessarily mean that we’re in a new dot-com bubble, they make one thing perfectly clear: the period of prudence that followed the financial crisis of 2009 is officially over.
- European venture capital investments as of 2013 and 2014, by countryEuropean venture capital investments as of 2013 and 2014, by country
- Venture capital fund numbers in Germany 2015, by investment focusVenture capital fund numbers in Germany 2015, by investment focus
- Venture capital fund numbers in France in 2015, by investment focusVenture capital fund numbers in France in 2015, by investment focus
- Top medtech mergers and acquisitions by value 2015-2016Top medtech mergers and acquisitions by value 2015-2016
- Medtech venture capital investment - U.S. and Europe 2006-2016Medtech venture capital investment - U.S. and Europe 2006-2016
- Ranking of highest valued startup companies worldwide, October 2016Ranking of highest valued startup companies worldwide, October 2016
- FinTech venture capital deals the United Kingdom (UK) as of 2016, by verticalsFinTech venture capital deals the United Kingdom (UK) as of 2016, by verticals
- Largest FinTech venture capital investors in the United Kingdom (UK) 2016Largest FinTech venture capital investors in the United Kingdom (UK) 2016
- Who may use the "Chart of the Day"?
- The Statista "Chart of the Day", made available under the Creative Commons License CC BY-ND 3.0, may be used and displayed without charge by all commercial and non-commercial websites. Use is, however, only permitted with proper attribution to Statista.
- Which topics are covered by the "Chart of the Day"?
- The Statista "Chart of the Day" currently focuses on two sectors: "Media and Technology", updated daily and featuring the latest statistics from the media, internet, telecommunications and consumer electronics industries; and "Economy and Society", which current data from the United States and around the world relating to economic and political issues as well as sports and entertainment.
- Can Statista create customized charts?
Absolutely! For information on tailor-made and sector-specific
Charts of the Day, please contact Robin Hüdepohl