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Dashboard: Fundraising spikes in June, deal activity falls

Venture activity in June was mostly positive as M&A, IPOs and firm fundraising each increased during the month. Only deal value fell from the month before, according to VCJ‘s analysis of the preliminary data from Thomson Reuters.

U.S.-based fundraising had its best month of the year in June as 28 firms collected $8.24 billion in commitments, thanks to the close of the $3.3 billion fund from New Enterprise Associates.

Through the first six months of the year, U.S. firms have now raised more than $18 billion, and it seems likely that they could exceed $30 billion by year-end if the pace keeps up

Deals (value down 14.3%)

A total of 413 U.S.-based companies raised more than $6 billion in June, according to preliminary data from Thomson Reuters, compared with 409 deals raising $7 billion in May, a 14.3 percent drop in total value. Houzz, a Palo Alto, California, provider of an online platform for home remodeling and design, led the way. The company raised $400 million in a June deal from Sequoia Capital, GGV Capital and Iconiq Capital.

Fundraising (value up 247%)

Fundraising for U.S.-based venture firms spiked in June, thanks to the 16th and largest ever fund from New Enterprise Associates and the second growth fund from Sequoia Capital. A total of 28 U.S. firms collectively raised $8.24 billion in June, a 247 percent increase from the month before when 27 firms raised $2.37 billion in commitments during the month. June’s total was led by NEA, which raised $3.3 billion for its mega fund, which was targeted at $3 billion, and Sequoia’s growth fund, which wrapped up at $2 billion.

M&A (value up 7%)

Although the number of VC-backed startups acquired fell in June from the previous month, their collective value inched upwards. In June, 18 venture-backed companies sold for a combined $1.2 billion in proceeds, compared with 26 deals at an aggregate value of $1.12 billion the previous month, a modest 7 percent rise. The largest transaction in June was the sale of South San Francisco-based True North Therapeutics Inc, a biotech company that Bioverativ Inc acquired for $825 million. The company had raised more than $140 million from Kleiner Perkins Caufield & Byers, OrbiMed Advisors and other investors.

IPO (value up 4o%)

Four venture-backed IPOs were completed in June, one less than in May. But the combined proceeds rose to $646 million in June, a 40 percent increase from the $460 million in total value from five IPOs the month before. The June debuts were led by the food delivery service Blue Apron, which raised $300 million in its IPO. The New York company was backed by Bessemer Venture Partners, First Round Capital and others.

Source: Thomson Reuters

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