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Global VC deal volume declined almost 30%

Americas and Europe face a slight increase, whereas Asia experiences a drop

VC deal volume

Global VC deal volume declined almost 30%. Source: shutterstock.com

According to KPMG report, the global VC investment fell from $65.6 billion in Q4 2019 to $61 billion in Q1 2020.

As to the global VC deals, they declined 27%, falling from 5,820 deals in Q4 2019 to 4,260 in Q1 2020. The report highlights that the number of VC deals hasn’t been this low since Q3 2013.

A very strong deal pipeline in most regions of the world limited the impact of COVID-19 on the VC market globally in Q1 2020. But given the sharp decline of VC deal volume in Asia, as compared to the many economies that only started to shut down near the end of the quarter, Q2 2020 is expected to be a rough quarter for VC investment in every jurisdiction
Conor Moore, Co-Leader, KPMG Private Enterprise Emerging Giants Network

Although, VC investment in the Americas increased from $33.5 billion in Q4 2019 to $35.3 billion in Q1 2020. The US part of this investment accounts for $34.2 billion.

The study unveiled that Europe saw a significant increase in investment as well. According to the data, it grew from $7.9 billion in Q4 2019 to $8.8 billion in Q1 2020.

Nevertheless, Asia saw a 31% decline in funding, dropping from $23.8 billion to $16.5 billion.

It has also been stated that a number of neobanks received raises. For instance, US-based Chime got $700 million, Revolut received $500 million, and Klarna raised $200 million.

We’ve reported that artificial intelligence (AI) attracted the highest number of venture capital (VC) investors during 2019. Meanwhile, big data and internet-of-things (IoT) led in terms of investors-to-idea ratio and average deal size.

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