Venture capital hits global record in Q2

Venture-capital investments around the world hit another record in the second quarter, with the United States showing strong momentum, but not reaching a new deal-value record itself.

The high level of activity suggests no slowdown in enthusiasm for software and internet deals, and for putting large sums of money in perceived breakout companies.

Worldwide, investors poured $74 billion into 3,686 companies during the three-month period, according to Preqin. The deal value is the fourth quarterly deal-value record set since early 2017.

The investment surge was fueled in large part by activity in China, where $40 billion was placed in 1,155 deals, Preqin said. This represents 54 percent of global investment and 31 percent of global deals.

The Chinese total was driven in large part by a $14 billion financing for Ant Financial Services Group.

In the United States, quarterly funding came to $20.4 billion with 1,110 deals collecting capital, according to data from Thomson Reuters. The quarterly deal value was the third largest since the close of the dot-com boom in 2000 and trailed the first quarter of 2017’s $22.4 billion.

Around the world, software and internet deals made up about half of the total, Preqin said. In the United States, software and internet constituted up to 62 percent of deals, according to Thomson Reuters. Biotech and healthcare deals represented 20 percent of the U.S. deal activity.

Overall, the largest deals of the quarter were with Lyft, Dataminr and Robinhood Markets.

Separately, the worldwide exits markets for venture-backed companies were solid, aided by the $16 billion sale of Flipkart to Walmart. The volume of deals declined, but their value rose to a record.

The quarter saw $70 billion generated from 236 deals, with $21 billion coming from the IPOs of 46 companies, Preqin said.