Preqin’s Deal Flow Data: Venture Capital Deals Activity Edges Up in Q2 2012

Number and value of VC deals increase by 16% against Q1 2012 figures.

Preqin’s deal flow data shows that there were 1,249 venture capital financings announced during Q2 2012, representing an aggregate value of $10.9bn. This is a 16% increase in both the number and value of VC deals in comparison to Q1 2012, and is the largest amount of aggregate capital committed by VC firms since Q3 2011.

Other Key Facts:

  •  67% of the number and 75% of the aggregate capital of VC deals announced in Q2 2012 occurred in North America, with 839 VC financings in the region valued at $8.2bn during the quarter. This is a 14% increase in comparison to the previous quarter, when 734 VC financings valued at $7.2bn were announced.
  • European VC activity experienced a 23% rise in the number and a 25% increase in the value of VC deals in comparison to the previous quarter. A total of 252 European deals took place during Q2 2012, valued at $1.4bn.
  • The number of Chinese VC deals continued its slide in Q2 2012, with 27 VC deals announced in the country during Q2 2012. This represents a 20% drop from Q1 2011 levels and a 42% decrease from Q4 2011, largely due to investor worries regarding the Chinese exit market.
  • However, while the number of VC deals in China dipped in Q2 2012, deal value almost doubled in comparison to the previous quarter, with $545mn invested in the region. This is up from $280mn in Q1 2011, but still lower than the $798mn worth of VC deals completed in Q4 2011, and is in large part due to the $216mn Series C financing of Xiaomi.
  • 75 VC deals were announced in India during Q2 2012, a 32% increase from the previous quarter, representing the most active quarter for Indian deal flow during the 2010 – H1 2012 period in terms of number of deals.
  • 17 VC deals were reported in Israel during the period, matching activity in the region witnessed in recent quarters, representing an aggregate value of $200mn.
  • A third of all deals globally during Q2 2012 were Angel, Seed or Series A deals, displaying investors’ attraction towards very early stage investments. Additionally, Series B, C, D and later investments accounted for less than 20% of the number of all deals.
  • Venture capital-backed add-on deals made up 7% of all VC transactions in Q2 2012.
  • The average VC deal value in 2012 YTD has been $14.1mn per deal. This is down on 2011, when the average VC investment totalled $17.9mn per round, but very similar to deal values witnessed during 2010. In Q2 2012, more than a quarter of the total number and aggregate value of financings globally was invested in the internet sector, which includes social networking and e-commerce deals.
  • The healthcare and software sectors each accounted for around 16% of the total number of VC deals, while clean technology companies accounted for 13% of the aggregate value of investments.

Q2_2012_Venture_Capital_Deals

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