Venture fundraising continues to spike

Fundraising (volume up 27.5%)

Fundraising efforts by U.S.-based venture shops increased almost 28 percent over the month of June, as firms raised $3.45 billion during the month, compared to $2.71 in May. Of the nearly 40 firms that completed a round of fundraising, Bain Capital Venture Partners raised the most, when the firm secured $650 million in commitments, bringing Bain Capital Venture Fund 2014 to $715 million in size. Oak Investment Partners also raised $456.1 million for their Oak HC/FT Partners LP and Shasta Ventures held a $300 million close on their fourth fund.

Deals (value up 15.3%)

The value of venture-backed deals that disclosed their financial terms increased by over 15 percent month-over-month from the $4.96 billion recorded in May to $5.72 billion in June. In June, venture firms invested in 485 deals and the average equity per deal was $11.79 million. The largest deal to completed was the $1.2 billion investment in Uber Technologies Inc by Kleiner Perkins Caufield & Byers LLC and others.

M&A (value up 46%)

Including net debt, the aggregate rank value of the 34 M&A deals completed in June totaled $1.49 billion. In comparison, in May, M&A deal activity was just over $1.02 billion, the market increased about 46 percent for companies with a U.S.-based financial sponsor. Only 13 deals disclosed their financial terms and the largest M&A transaction was the acquisition of Cardiomems Inc, a manufacturer of wireless medical devices, by St Jude Medical Inc in a cash only deal valued at $375 million.

IPO (total proceeds down 48%)

In June, nine VC-backed companies went public on U.S. exchanges, two more than the seven that debuted in May. However, combined proceeds dropped from $2.16 billion in May to $1.12 billion in June. The June tally of IPOs includes five healthcare companies: Kite Pharma, Ardelyx, Zafgen, ZS Pharma and Radius Health. Kite Pharma’s share price was up 70 percent at the end of June. The company’s post-offering value was $240 million following its IPO, which was priced at $17 a share.

Compiled by Larry Oberfeld, based on Thomson Reuters data and original research.

Data is continuously updated and is therefore subject to change. Date based on U.S. venture firms.

Photo illustrations by Janet Yuen.