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Venture investing rebounds in Q2, fundraising strong

Venture investing rebounded in the second quarter with $21.8 billion going to 1,958 deals with startups in the United States, according to the National Venture Capital Association and PitchBook.

Driving the quarter’s activity were late-stage transactions, which jumped to $14.1 billion, the second highest level since the start of 2010. The three months saw 34 deals of at least $100 million, almost triple the volume of the first quarter.

Meanwhile, fundraising set a swift pace, with 58 funds raising $11.4 billion, according to PitchBook and NVCA. The quarter was the largest for fundraising since the second quarter of 2016, when $13 billion was raised.

Leading the quarter’s total was a $3.3 billion fund from New Enterprise Associates.

Investments in dollars rose a strong 36 percent from the first quarter of the year, while deal volume remained largely unchanged.

“There’s a bit more certainty” both economically and politically, said Andrew Schwab, a managing partner at 5AM Ventures. “The first quarter was post-election uncertainty.”

On the fundraising front, dollars raised rose 47 percent from the first quarter, while the number of funds fell modestly. The quarter saw 15 first-time funds raise capital.

With $130 billion raised since 2004, the industry appears poised to continue deploying capital at a fast pace.

The quarter saw IPOs from 19 venture-backed companies, including Okta and Cloudera.

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