Fundraising (value up 147%)
Fundraising for U.S.-based venture firms spiked in June, pooling nearly $5.2 billion, up 147 percent from the $2.1 billion raised in May. Andreessen Horowitz raised $1.5 billion in June for its fifth fund, which also ranks as the largest U.S.-based venture fund raised year-to-date. Kleiner Perkins Caufield & Byers raised the second largest amount in June when it collected $1.4 billion combined for two funds, a $1 billion growth vehicle and a $400 million main fund for early-stage deals.
Deals (value up 42%)
The season’s change from spring to summer ushered in an upswing in completed deal value. The overall combined value rose to $6.4 billion in June, up from $4.5 billion in May, while deal count dropped to 251 from 288. The top deal of the month was for ride-sharing network Uber Technologies Inc, which raised $3.5 billion in an equity round from a Saudi Arabian sovereign wealth fund.
M&A (value up 5,000%)
In what looks like a typo, venture-backed M&A value grew nearly 5,000 percent, reaching $10.1 billion in June, compared with $200 million in May, thanks to the close of the $10 billion Stemcentrx acquisition by AbbVie. There were 18 U.S.-based companies that were acquired in June, only three of which disclosed their financials, including the outsized Stemcentrx deal. AbbVie announced in late April its intentions to buy Stemcentrx, a South San Francisco-based developer of cancer therapies from stem cells.
IPO (value up 21%)
While the number of VC-backed IPO deals stayed level at six in June, the proceeds rose to $460 million, a 21 percent rise from $381 million combined in proceeds from six VC-backed IPOs in May. The largest offering of the month was Twilio Inc, a cloud communication platform, going public for $150 million. Next up was NantHealth Inc, a personalized healthcare company enabling more effective treatments, which debuted raising $91 million.
Based on Thomson Reuters data
Photo of exit sign with arrow pointing up by Alastair Goldfisher
Green arrows up designed by Janet Yuen for VCJ