20180116-毕马威-Venture_Pulse_Q4_2017__Global_analysis_of_venture_funding_105页_2mb

Venture Pulse Q4 2017 Summary

Core Content

The Q4 2017 edition of KPMG Enterprise's Venture Pulse Report provides a comprehensive analysis of global venture capital (VC) market trends, highlighting key developments across different regions and sectors. The report notes a record-breaking year for global VC investment, with total annual funding reaching $155 billion, the highest in the decade. This was driven by a surge in large-scale deals, including six $1 billion+ rounds in Q4 alone.

Despite the high investment, the number of deals continued to decline, indicating a shift in investor focus toward quality over quantity. Investors are increasingly placing larger bets on fewer companies with strong potential for profitability. This trend is evident across all regions, with the software sector still dominating VC funding, while biotech and healthtech experienced significant growth.

Main Points

• Global VC Funding:

  • Total global VC investment reached $155 billion in 2017, the highest annual total in the decade.
  • Q4 2017 saw nearly $46 billion in investment, the highest quarterly total ever, with a slight decline in deal volume.
  • The number of deals globally declined, but deal sizes increased, particularly in late-stage rounds.

• Sector Trends:

  • Software remained the largest recipient of VC funding.
  • Biotech & Healthtech saw record-breaking investment, with pharma & biotech companies raising over $16 billion in 2017.
  • Artificial Intelligence (AI) experienced a bumper year, with $12 billion in global investment, driven by deals like Nio and Face++.
  • Fintech and Autotech also saw increased interest and investment.

• Geographic Highlights:

  • United States: Dominated the VC market, with over $23 billion invested in Q4.
  • Asia: Q4 investment reached $15.5 billion, the third-highest quarterly total ever, largely due to mega-deals in China.
  • Europe: Experienced a record high in VC investment, with the UK leading the way, including Deliveroo's $482 million round.

• Corporate VC Participation:

  • Corporate venture capital (CVC) accounted for 18.7% of global VC deals in Q4, up from previous quarters.
  • CVC is becoming more active as companies seek to stay private longer and explore cross-industry innovation.

• Early-Stage Funding:

  • Angel and seed stage deal volume declined, but median deal sizes remained high, suggesting a focus on quality.
  • The decline in early-stage activity is attributed to investor caution and the preference for later-stage, more mature companies.

• Unicorn Companies:

  • The number of unicorn fundings increased to 93 in 2017, up from 77 in 2016.
  • The average age of unicorns rose to 8.8 years, indicating a trend of companies staying private longer due to continued late-stage funding availability and weak IPO markets.

• Exit Trends:

  • Exit activity, both in terms of count and value, declined in 2017, with a focus on M&A as a more viable exit option.
  • Secondary market activity increased to provide liquidity to early-stage investors and employees.

• IPO Activity:

  • IPO activity remained weak in 2017, with limited step-up valuations, suggesting possible overvaluation in the private market.

• Alternative Financing:

  • Initial Coin Offerings (ICOs) gained traction, raising over $2 billion in 2017, though regulatory scrutiny is expected to increase in 2018.

Key Information

• Global VC Investment:

  • $155 billion in 2017, with Q4 hitting $46 billion.
  • Median deal size increased across all stages, with Series D+ valuations peaking at $275 million.

• Deal Volume:

  • Global deal volume continued to decline, especially in angel and seed stages.
  • The US had the highest deal volume and investment, while Europe and Asia saw strong performance.

• Corporate VC:

  • Played a significant role, with 18.7% participation in Q4, and 21% in Europe.
  • Corporate VC involvement is driven by the desire to stay ahead in innovation and support business lines.

• Emerging Trends:

  • Cross-industry innovation and the application of AI across various sectors are gaining traction.
  • Agtech, foodtech, and blockchain are expected to be key areas of focus in 2018.

• Future Outlook:

  • The VC market is expected to remain robust in 2018, especially in AI, biotech, agtech, and autotech.
  • Secondary market activity and M&A are likely to increase, offering liquidity alternatives.
  • The fundraising cycle is beginning to slow, with fewer funds being closed compared to the previous three years.

Summary of Figures

• Global VC Investment in Q4'17: $46 billion across 2,662 deals.
• Top Deals in Q4'17:
  • Didi-Chuxing: $4 billion
  • Meituan-Dianping: $4 billion
  • Nio: $1 billion
  • Grail: $1.2 billion
• Pharma & Biotech Investment in 2017: Over $16 billion.
• AI Investment in 2017: $12 billion, with notable deals like Face++ ($460 million) and Indigo ($206 million).
• Unicorn Rounds in 2017: 93 fundings, with the highest valuation in Q4 being $482 million for Deliveroo.

Conclusion

The Q4 2017 report underscores a shift in the VC landscape, where larger, later-stage deals dominate investment flows, and early-stage activity declines. The market is increasingly influenced by corporate participation and the desire for high-quality, scalable ventures. While IPO activity remains weak, secondary markets and M&A are emerging as critical liquidity sources. The year 2017 marked a significant turning point in the VC industry, with continued growth in biotech, healthtech, and AI, and a more cautious approach to early-stage investments.