The venture capital-backed deal market has recorded its largest ever quarter, as 2,062 deals worth US$47bn were announced in the second quarter. Specialist data provider Preqin expects these figures to rise by around 5% as more information becomes available.
The second quarter of 2017 already surpasses the previous record of $43bn in venture capital-backed deals recorded in Q3 2015. Activity in the quarter was driven by record levels of dealmaking in Asia, which saw deals worth a total of $22bn announced.
This is almost half the global total. This makes it the fourth quarter since the start of 2015 in which Asia has surpassed North America to become the most prominent region for venture capital-backed deal value.
“The second quarter of 2017 has seen a record amount of capital deployed into venture capital-backed deals,” explains Felice Egidio, head of venture capital Products at Preqin. “This is particularly notable following the slowdown we saw in the second half of 2016.”
This reflects the changing nature of the global venture capital landscape, he adds. Asia accounted for the largest share of deal value for the fourth time in the last six quarters, and the largest venture capital deal ever recorded was in China.
The number of financings does not yet approach those seen in North America. But the region has now come into its own as an epicentre of this niche of the global alternative investment industry, he says.