MoneyTree™ Q2 2019 Report Summary
Core Content Overview
The Q2 2019 MoneyTree™ report highlights the continued growth and activity in the US venture capital (VC) ecosystem, despite some fluctuations in certain segments. The report provides insights into funding trends, deal activity, unicorn valuations, and regional and vertical performance across different sectors.
Main Points
US VC Funding Trends
- Total Funding: US VC funding reached $55B in Q2 2019, surpassing the mid-point of 2018 and on track to set another record.
- Mega-Rounds: A record 64 $100M+ rounds were raised, contributing to nearly 50% of the total funding.
- Unicorns: 19 US VC-backed companies reached $1B+ valuation, close to the record of 22 set in Q4 2018.
- Top Funded Companies: Juul moved to the top with $13.6B in funding, followed by WeWork and Airbnb.
Regional Insights
- North America, Asia, and Europe: Funding levels remained relatively flat, but North America maintained its lead in both deal activity and dollar funding.
- San Francisco Bay Area: Deal activity rebounded by 17% after three quarters of decline, with $13B in funding.
- New York Metro: Deal activity declined by 8%, and dollar funding dropped by 9%.
- San Diego Metro: Both deal activity and funding saw a significant jump.
- Seattle Metro: Deal activity increased, while funding rose for the second consecutive quarter.
Sector Performance
- Internet and Software: Dominated deal activity and funding, especially in SaaS, e-commerce, and AI.
- Healthcare: Continued to be a major sector, with biotechnology and drug development leading.
- FinTech and AI: Both sectors saw a surge in funding and deal activity, with AI leading in terms of number of deals.
- Cybersecurity: Slight increase in funding but a decline in deal activity.
Key Information
Top 5 Funded US Companies in Q2 2019
| Company |
Funding |
Vertical |
Emerging Areas |
| Juul Labs |
$13.6B |
Consumer Products & Services |
Consumer Hardware |
| WeWork |
$6.6B |
Business Product & Services |
Co-Working & Co-Living Spaces |
| Airbnb |
$3.4B |
Internet E-Commerce |
On-Demand |
| SpaceX |
$2.7B |
Industrial Aerospace & Defense |
Space Tech |
| Magic Leap |
$2.6B |
Software Scientific, Engineering Software |
AR/VR |
Top 5 Largest US Deals in Q2 2019
| Company |
Investment |
Round |
Select Investors |
Vertical |
| Cruise Automation |
$1.15B |
Corporate Minority |
General Motors, Honda, SoftBank Group |
Automotive & Transportation |
| DoorDash |
$600M |
Series E+ |
Coatue Management, Dragoneer Investment Group |
Internet E-Commerce Food & Grocery |
| UiPath |
$600M |
Series D+ |
Accel, capitalG, Sequoia Capital |
Software Scientific, Engineering Software |
| SpaceX |
$536M |
Other |
Undisclosed |
Industrial Aerospace & Defense |
| SoFi |
$500M |
Series E+ |
Third Point Ventures, Qatar Investment Authority |
Internet E-Commerce Marketplace |
Top 5 US Unicorns by Valuation in Q2 2019
| Company |
Valuation |
Vertical |
Emerging Areas |
| Juul Labs |
$50.0B |
Consumer Products & Services |
Consumer Hardware |
| WeWork |
$47.0B |
Business Product & Services |
Co-Working & Co-Living Spaces |
| Airbnb |
$29.3B |
Internet E-Commerce |
On-Demand |
| Stripe |
$22.5B |
Internet Software & Services |
Fin Tech |
| SpaceX |
$18.5B |
Industrial Aerospace & Defense |
Space Tech |
Top 5 VCs by Amount Raised (2015–Q2’19)
| Investor |
Funds Raised |
Year Founded |
Select Investments |
Location |
| Sequoia Capital* |
$17.5B |
1972 |
DoorDash, Noom, Klarna |
Menlo Park, CA |
| Insight Partners |
$12.5B |
1995 |
SalesLoft, ezCater, Checkout.com |
New York, NY |
| Andreessen Horowitz |
$9.7B |
2009 |
TripActions, ADDI, People.ai |
Menlo Park, CA |
| Summit Partners |
$9.1B |
1984 |
Red Canary, Klaviyo |
Boston, MA |
| New Enterprise Associates |
$6.5B |
1977 |
Collective Health, Tempus |
Menlo Park, CA |
Top 5 Most Active VCs in Q2 2019
| Investor |
Deals |
Select Investments |
Location |
| New Enterprise Associates |
28 |
Coursera, Collective Health, Expel |
Menlo Park, CA |
| Plug and Play Ventures |
24 |
Zippia, Datch, Back Office |
Sunnyvale, CA |
| Lightspeed Venture Partners |
19 |
People.ai, BetterUp, Affirm |
Menlo Park, CA |
| Google Ventures |
19 |
Harness, Lemonade, Hover |
Mountain View, CA |
| Kleiner Perkins |
17 |
Nextdoor, Feather, Labelbox |
Menlo Park, CA |