Venture investment of Venture "Risky Undertaking"
Providing funds for long term to the young companies which are at an early stage of development in exchange for a share in these companies. The venture capital provides itself the financial link of the innovation infrastructure integrating carriers of the capital and carriers of technologies, and he solves a problem of financial insufficiency in the sector of the starting innovation projects. Thanks to a venture capital such companies as Intel, Microsoft, Google, Yandex, Abbyy Russia (Abbyy), A4Vision and others were created.
Venture investment is meant as acquisition of capital, authorized capital of the new or growing companies, at the same time the purchased share is less than controlling stake. The invested means are aimed mainly at business development, but not at the redemption of shares of the existing shareholders (founders) of the company.
Angel investors and sowing funds
Angel investors are private investors, wealthy individuals with wide experience who for various reasons invest the spare cash and experience ("smart money") in business of the idea of beginners. Typical investment volume into a startup - $50-300 thousand. It is necessary to reckon with the high level of risk as in the new markets there is not enough statistics about risks. Besides, because of limitation of means, the investor cannot provide high diversification. Contracts with founders of the companies in many aspects informal that complicates possibilities of control over business.
Angel investors usually at the same time are engaged in many projects as most of them will fail and only one of many will make profit which can pay back other losses. So, one of the first investors of Google company — Andy Bekhtolskhaym — now the billionaire.
Angel investors invest a part of own means in the innovative companies of the earliest stages of development — "sowing" (seed) and initial (start-up), keeping their technical and commercial development. They does not lend money as bank (debt financing), and provide money, communications and experience in exchange for share fraction in the new company (participation financing).
The sowing fund invests at a stage when the company only defines the concept of the business and creates prototypes of products or technologies. The first large fund of sowing investments in Russia is going to create RVC.
The maximum revenue of the company which will be able to apply for receiving investments from sowing fund RVC for the last four quarters will not have to exceed 25 million rub, consider in RVC. Besides, she should be younger than three years. Also in expected conditions for new fund it will be registered that the volume of an initial round of investments into the company - no more than 25 million rubles, and some its stocks belongs to authors and developers of new technology. The companies in which it is ready to invest RVC should develop products or renders services from the list of critical technologies.
Stages of lifecycle of the receiver of investments
Sowing stage (seedstage): the company has a concept, the idea of a product, but a ready-made product is absent; work on a prototype is conducted.
Stage of a startup (start-upstage): the company has a pilot version of a product or the first version for demonstration; testing of a product is performed.
Early stage (earlystage): the product of the company is ready to entry into the market, testing of demand is performed.
Stage of expansion (expansionstage): the product is accepted by the market, rapid growth of sales and demand is observed.
Late stage (laterstage): the company is transformed to the large organization, shows signs of the public company.
There are private, private public and corporate foundations (invest for the benefit of founder corporations). Here some of them, working in Russia:
- Finam Information technologies
- Atlas Start
- Atlas Venchur
- Baring Vostok Capital Partners
- Kite Ventures
- DFJ VTB Capital Aurora
Public and private funds
- Russian Venture Capital Company (RVCC)
- Fund of Moscow under management "Alyans Rosno UA"
- Fund of Mordovia under management "Alyans Rosno UA"
- Fund of Perm under management "Alyans Rosno UA"
- The Krasnoyarsk fund under control of Troika Dialog
- Fund of the Moscow region under control of Troika Dialog
- Venture fund of Tatarstan under control of Troika Dialog
- VTB the Venture Fund (together with RVC)
- Fund of St. Petersburg under control of VTB of UA
- The Nizhny Novgorod fund under control of VTB of UA
- The Saratov fund under control of VTB of UA
- Intel Capital
- Cisco Capital
- Deutsche Telekom Capital Partners (DTCP)
- Oradell Capital - is created by the founder and the president of IBS holding Anatoly Karachinsky
Kraudinvesting (joint-stock crowd funding) and Kraudlending
Kraudinvesting or joint-stock crowd funding - an alternative financial instrument for attraction of the capital in startups and small businesses from a wide range of microinvestors.
Kraudlending - crediting by natural persons other natural persons (P2P-crediting) or the companies (P2B-crediting) through special Internet platforms.
Standard requirements to applicants of venture investments
Small enterprise in the scientific and technical sphere. An organizational form - Ltd company or closed joint stock company.
The main activity - implementation and commercialization of results of Research and Development, inventions, improvements and innovations in the scientific and technical sphere.
Existence of a deliberate plan of project implementation in the form of the issued business plan.
Existence of intellectual property rights, patents, copyright, or real possibility of receiving such rights to results of scientific and technical activity.
Sales opportunity of the project within no more than 6 years.
Readiness of initiators of the project for partnership with venture fund, participation of fund in capital stock of the enterprise (the fund purchases the control or blocking packet).
Financial performance of the project not less than 70% of IRR (internal regulation of profitability).
The market of venture investments in Russia
- Corporate venture in the IT industry of Russia
- Venture investments in Russia
- Venture investments into the IT sector of Russia
World market of venture investments
2020: Russia entered in top-20 the countries with the best ecosystems for startups
At the end of May, 2020 it became known that Russia entered in top-20 the countries with the best ecosystems for startups according to StartupBlink company which conducts every year the research estimating the states and the cities on performance, investments, features of the market, level of communication and other criteria. Read more here.
Investments into developers corporate a solutions blockchain flew up for 62%
Investment volume into developers of blockchain technologies of the corporate level in 2019 reached $434 million that is 62% more, than the previous year. Data of the CB Insights analytical company specializing in market research of the venture funding demonstrate to it. Read more here.
Venture investments into the cybersecurity companies sank for 23%. Results of year
According to National Venture Capital Association (NVCA) association, in 2019 the investment volume into the startups which are engaged in information security was made by $5 billion whereas in the 2018th the indicator equaled $6.5 billion. It is about investments in the company which are engaged only in cyber security and do not develop other technologies. Read more here.
Investments into the financial technical-companies fell because of China
Global investment volume into developers of financial technologies in 2019 was $53.3 billion, having decreased by 3.7% concerning the 2018th. Recession happened owing to decrease in investment activity in China that, in turn, is connected with aggravation of the trade conflict between Beijing and Washington, data of consulting company Accenture demonstrate. The research was conducted together with the analytical company CB Insights specializing in market research of the venture funding. Read more here.
The venture funding of the African startups became record
In the middle of January, 2020 the Forbes edition reported that in 2019 the African startups attracted record-breaking high investments. In general the African companies received $1.34 billion a venture capital, and financial technical-developer — $678.73 million, data of WeeTracker demonstrate.
According to a research, in 2019 427 African firms managed to attract financing, and 83% of the total amount of investments attracted only 6% of these companies. According to the report, more than 75% of transactions were concluded in Nigeria, Kenya and the Republic of South Africa, and financial that continues to remain the most attractive sector of financing. Annual increment of a venture capital in this sphere made 138.5%.
The list of the companies which managed to receive the maximum investments was headed by firms of Nigeria ($663.24 million, i.e. 50.5% of all venture capital attracted by the African firms). A little the companies of Kenya and the Republic of South Africa lag behind them. No wonder, Nigerian startups, such as Interswitch, OPay, Andela, Palmpay, the majority of the largest venture transactions on the continent in 2019 carried out. Nevertheless, in WeeTracker found out that in Kenya the gain of the amount of financing for 2019 made 283.64%. In general $1.09 billion a venture capital or as it is specified in the report, "an enormous share — 81.49% of the total amount of the means received by the African companies" fell to the share of Nigeria and Kenya.
In the report the most active investors of Africa are also mentioned: Samurai Incubate which participated in 9 transactions and also Goodwell, Endeavour, TLcom Capital, Knife Capital and Microtraction — all of them took part in 4 transactions everyone.
Also follows from the report that in 2018 the African startups attracted $725.6 million (458 transactions), and in 2017 - $203 million. Thus, annual increment of investments made 79.2%.
The venture funding of developers of corporate IT exceeded $30 billion
The venture funding of developers of corporate IT solutions for the first time at least since 2015 exceeded investments into the companies specializing in consumer technologies. It became known in January, 2020.
According to analysts of PitchBook Data, in 2019 venture capitalists invested in total $30.42 billion in the startups offering the software and services for the companies and state agencies that almost twice exceeds an indicator of year prescription. Developers of consumer solutions attracted $23.26 billion that is one quarter less, than the previous year.
In the market of corporate IT experts connect one of the reasons of rapid growth of investments with the stock market. Venture capitalists usually earn from portfolio company when that is on sale or goes public. In 2019 occurred a number of the successful IPO in the technology sector. So, CrowdStrike in the first day in the status of the public company recorded the 71 percent growth of quotations. Further actions only rose in price.
One more factor of growth is connected with the fact that the market of corporate IT is characterized by a small amount of giant players that attracts many talented entrepreneurs.
In the field of the venture funding in 2019 one more trend was observed: the most part of investments (about 30%) fell on the startups which are at late stages of the development.
The surge in investments into developers of corporate IT solutions contrasts with falling of expenses on merges and absorption (M&A) in this sector. According to the TechCrunch edition, amount 10 of the largest M&A-сделок with participation of such companies in 2019 reached $40.6 billion against $87 billion in the 2018th. And only in one of transactions (Tableau Software purchase by Salesforce company) $15.7 billion were spent at once.
The Indian technology companies in a year attracted record $14.5 billion investments
The Indian technology startups for 2019 attracted $14.5 billion investments, having exceeded a record of 2018 in $10.6 billion. Data of InnoVen Capital venture capital company which were published at the end of December of the 2019th demonstrate to it. Read more here.
The Finsight Ventures fund defined assets of the technology sector, perspective for investors
The Finsight Ventures investment fund in the research notes that after crisis of 2008 in the market over 365 technology companies with assessment more than $1 billion which remain private in 2019 were created: "These companies long time were focused on growth, and some of them became leaders in the niches, and some created new segments of the markets. For identification of technology leaders of the current cycle pre-IPO investors need to understand a competitive position of certain issuers and perspectives of development both specific business, and market. Many enterprises due to use of proprietary technologies scale the product on new niches".
2019 forced many companies to rethink blitz scaling model, note in Finsight Ventures: "The IPO Uber and Lyft and also cancelled IPO WeWork led to the fact that the private technology companies without accurate way and the strategy of formation by profitable were forced to postpone placement. Volatility of actions even of the fast-growing technology companies generating a negative free cash flow increased, investors became less tolerant to systemically unprofitable companies and their business models. In this regard at the end of 2019 the market of the IPO slowed down". Analysts of fund add that technology business considers entry into the exchange as a method of attraction of financial resources more and more seldom: "More and more companies consider that carrying out the IPO is profitable not them, and investment banks and their clients: banks take the commission to 8% of the amount of attraction, underestimate assessment of the companies by the IPO for maximizing potential of growth of share value after the IPO therefore the companies even more often consider the possibility of direct share placing at the exchange which differs from the traditional IPO in the fact that the company, as a rule, does not issue new stocks, and places on the exchange shares of the existing shareholders with a possibility of immediate sale. Carrying out direct placements by the consumer companies with a strong brand, such as AirBnB, DoorDash is the most probable and Houzz the Platform about repair of premises and interior design".
In 2020 growth rates of venture investments into the companies at a late stage will remain, but the quantity of rounds with attraction more than $500 million will be reduced, consider in Finsight Ventures: "At the same time even more often large rounds of financing at a late stage contain elements of attraction not only the primary capital, but also secondary sales, providing to employees and early investors access to liquidity in private market (for example, Unity and Tanium). According to our forecasts, the volume of the secondary market transactions will continue to increase".
According to analysts, one of the best options of participation in the exponential growth of the technology companies at controlled volatility are investments into the pre-IPO. The short list of the perspective markets includes a geyming, cyber security, the infrastructure corporate software and analytics of Big Data, said in a research: "The markets of cyber security, the analysis of Big Data and infrastructure software are characterized by high rates of gross marginality (more than 70%) and annual average growth rates (25% for the last three years are higher) that creates higher rates of the multiplicator P/S. Investing in the companies of these sectors at a pre-IPO stage, investors could receive average annual yield from 56% to 115%. The market of a geyming was created in the 90th years, in the 2000th the companies which are engaged in development of mobile games actively began to enter the public market. At the same time a large number of players of the market of a geyming remain private as the companies have no need for attraction of financial resources through the IPO — the segment of a geyming is characterized by rather high level of pure marginality (mean value – 16%). Separate companies, having begun with the solution for a geyming, are scaled on the adjacent markets and create digital platforms".
Among the relevant ideas at the stage pre-IPO in Finsight Ventures select investments into such projects as
- Cohesity (the developer of a cloud platform for management of storage and the analysis of big arrays of secondary data),
- Rubrik (the developer of a cloud platform for management of data storage of applications),
- Coursera (developer of the educational platform),
- Gusto (the developer of the platform for management of HR processes and salary accrual) and
- Tanium (the digital platform for cyber defense). Potential return of investments, depending on the company, can make from 30% to 200%.
The companies from Silicon Valley fell in price by $100 billion
The market value of the companies from Silicon Valley since the beginning of 2019 until the end of November was reduced approximately by $100 billion, journalists of The Wall Street Journal (WSJ) counted. Read more here.
Venture investments in the market of payment solutions jumped up by 5 times
In 2018 the amount of the venture funding in the world market of payment solutions reached $18.5 billion, having increased almost by 5 times in comparison with the 2017th. such data were published on May 28, 2019 by PitchBook analytical company.
Though the companies anyway connected with financial technologies began to raise much more funds, the number of venture transactions decreased — from 258 in 2017 to a 235 later.
Since the beginning of 2019 until the end of May 62 transactions (for the amount of $2 billion) on the venture funding of startups whose business belongs to payments and transfers on the Internet were registered. In January the Stripe company developing service for salary payments to employees and fight against fraud attracted in total $345 million and received assessment in $22.5 billion.
The GoCardless company creating a global network of interbank payments received investments in $75 million including from Alphabet and Salesforce, and Klarna startup suggesting to users of online stores to pay goods after testing of goods closed a round of financing of $100 million in 2019.
As notes CNBC TV channel, in the industry of payments appears more and more services and developers who want to earn that more and more people prefer to make purchases online and by means of contactless technologies. The amount of this market of analytics of McKinsey was estimated at $1.9 trillion at the end of 2018.
|The companies which can facilitate payments for small and medium business or which are concentrated on decrease in complexity of cross-border transactions received huge attention — the leading analyst on PitchBook technologies Paul Condra notes.|
CB Insights: 2740 transactions for $53 billion
At the end of 2018 corporate venture structures financed 2740 transactions, and the total amount of their investments approached $53 billion. The global activity of a corporate venture promptly grows, and the Asian companies apply for a role of key players of the market more and more surely, promising to press traditional North American leaders. At the same time not only Asian corporate funds, but also startups from this region are ready to take the main positions, umudryayushchy to lift more and more high investment rounds. So, in 2018 the largest volume of financing, $1.9 billion, including from Softbank Group and CapitalG, were received by the Chinese platform for lease of the Manbang Group trucks. Came to such conclusions according to the results of a profile research of analytics of the American company CB Insights.
The Chinese market became also the champion of the Asian region on the involved investments from a corporate venture. Namely: 38% of all transactions with participation of a corporate venture capital were the share of the Asian region in 2018.
According to the report of CB Insights, financing of the Chinese startups grew by 51% – to $10.8 billion, and the number of transactions – for 54%, up to 351. For comparison – financing of startups in Japan, though increased by 56%, however made only $1.4 billion at the end of 2018. The largest transaction for steel market of $63 million investments, Folio received by the platform for capital management. Investments of corporate venture funds in the Indian startups also remained are small in comparison with China – the number of transactions grew by 20%, from 59 to 71, and investment volume was $1.8 billion. The largest transaction for steel market of an investment of structures of the Japanese SoftBank ($1 billion) in the Indian hotel chain Oyo Rooms.
However, while the market leadership of corporate venture investments is saved nevertheless by funds of the USA – the total amount of transactions in 2018 grew by 28%, from $20.7 billion to $26.5 billion, and the number of transactions increased from 945 to 1046 (growth by 11%).
$6.2 billion are investments in the cybersecurity market
Venture investment into developers of technologies of cyber security and suppliers of the corresponding services at the end of 2018 reached about $6.2 billion, having increased by $1.1 billion rather previous year. Reported about it in the consulting company Momentum Cyber specializing in information security field. Read more here.
Investments in a fintekha made $111.8 billion; growth by 120%
In 2018 global investments into the sector of financial technologies reached $111.8 billion, having increased by 120% concerning an indicator of the previous year equal to $50.8 billion. It is said in the research made by consulting company KPMG. Read more here.
Financial that attracted record investments in the amount of $39.57 billion
At the end of January, 2019 results of a research of CB Insights according to which according to the results of the 2018th the financial and technology companies from around the world attracted a record venture capital — $39.57 billion were published that is 120% more than an indicator of year prescription.
According to a research, in 2018 investors took part in 1707 transactions whereas in 2017 — in 1480. Experts connect growth of financing with large stratapa which attracted more than $100 million once and in total received $24.88 billion. For example, investments into the Ant Financial Services Group company (the operator of the Alipay payment system, most popular in China) afillirvanny with Internet giant Alibaba Group made $14 billion.
Venture investors invest billions of dollars in the financial and technology companies in hope to tear off a market share at the operating financial institutions using simpler in use and cheaper digital financial services. The financial technical-companies appeared in all sectors of the financial industry, including crediting, banking and asset management. Only for the last quarter 2018 the cost of five more such startups exceeded $1 billion: the supplier of the credit cards Brex, the digital bank Monzo and the aggregator of data Plaid treat them.
The biggest jump of number of transactions in 2018 was observed in Asia — their quantity grew by 38% in comparison with 2017, and the venture capital reached the record size of $22.65 billion. In the USA the financial and technology companies attracted $11.89 billion due to 659 investments. The number of investment transactions in Europe was reduced, however the amount of financing also reached a maximum — $3.53 billion.
Initial public offering in 2019 can delay such rates of development of the financial technical-industry, analysts of CB Insights warn.
Each 4 days in China the startup worth from $1 billion appears
At the end of January, 2019 the Hong Kong research company Hurun Report published the report in which announced that almost each four days in China so-called "unicorn" — a startup with market capitalization from $1 billion Read more here appears.
The volume of venture investments in Europe became record, but the number of transactions was reduced by a quarter
At the end of January, 2019 within the annual European report of PitchBook data according to which 2018 became record by the amount of venture investments in Europe were published though the total quantity of transactions was reduced more than by a quarter.
In 2018 within 3384 transactions $23.3 billion were invested in total that is 4.2% more, than the previous year. But the total quantity of transactions dropped by 25.9%. It is supposed that investors were more interested in investing more money in the companies at later stage of development, than to provide less large portions of investments to young startups.
The research PitchBook covers data on all industries and includes in the report pharmaceutical and biotechnology, power, commercial services, mass media and many other things. At the same time a half of all European venture investments in 2018 fell on the technology companies – to $11.85 billion.
Straight lines venture investments outline only a part of a picture. The report of PitchBook found out that in 2018 the cost of an exit was $54 billion that is 164.8% higher, than in 2017 while the number of exits was reduced by 30.5% (up to 373). Nevertheless, if to remove from the report IPO Spotify and Adyen, the value of an exit will actually decrease by 4.2%. Also the report of PitchBook for 2018 shows that venture capital funds attracted $9.54 billion to 62 funds that represents insignificant increase by 0.2% in the amount of funds and decrease by 23.5% in number of transactions.
Analysts of PitchBook note that, despite decrease in number of transactions, the European ecosystem of a venture capital supported the sufficient level of investments during 2018 thanks to the fact that the investor paid attention to smaller quantity of more mature startups. Three investments stepped over a threshold in $1 billion that analysts consider an important milestone as it shows confidence of the investors investing huge amounts of money in stratapa.
The record venture funding in the cybersecurity sector - $5.3 billion
In January, 2019 the American investment company Strategic Cyber Ventures specializing in assets in information security field (cybersecurity) announced the record volume of the venture funding of developers of technologies and services for cyber defense.
According to Strategic Cyber Ventures, in 2018 the cybersecurity companies attracted on a global scale $5.3 billion a venture capital that for 20% exceeds an indicator of year prescription which was equal to $4.4 billion.
|We very often see huge date leaks. I do not think that it will stop soon. And investors see in it an opportunity for investment — the data specialist and the director of Strategic Cyber Ventures Chris Ahern reported Reuters agency.|
Most often investors invest in the American cybersecurity companies: 46% of the venture funding in the market were the share of them in 2018. Asian players (22.6%), on the third — European are in the second place (12.7%).
In the report of Strategic Cyber Ventures it is noted that the trend of shift of investments out of borders of the USA is observed not only in the market of cyber security, but also in all technology industry. Even more often invests many large international funds and investment companies in the non American startups.
|In other words, the amazing and valuable technology companies are created outside the USA — experts noted.|
Meanwhile, Chris Ahern warns that investments in the cybersecurity sector can decrease in 2019 as, according to the expert, "investors were tired a little, in some sort also producers got tired".
The cofounder and the chief executive officer of Strategic Cyber Ventures Hank Thomas in a conversation with Reuters called the People's Liberation Army the world's largest source of cyberthreats by the beginning of 2019.
The highest level of the venture funding since 2000
At the beginning of January, 2019 analysts of PwC and CB Insights published the report according to which in 2018 the highest level of the venture funding from the 2000th - the last year of a bubble of dotcoms was observed.
During 2018 $207 billion were invested within 14,247 transactions worldwide that 21% more, than in 2017. The total amount of financing in the USA in a year increased by 30%, having been $99.5 billion according to 5536 transactions. Within a year about 382 funds of financing (including 184 in the USA) made more than $100 million whereas in 2017 their number made only 266.
In the USA in 2018 53 new companies reached a point of the attracted venture capital of $1 billion in size and more whereas in their 2017 there were 29. 21 such companies – the highest rate for all history were only in the fourth quarter registered.
Investments received generally the companies in the field of artificial intelligence, digital health care and financial technologies, and the financing connected with artificial intelligence grew by 72% to $9.3 billion. At the same time the venture funding in the region of San Francisco jumped by 55%, to $28 billion, and financing in New York reached $13 billion.
Despite record digits, in the fourth quarter the number of transactions it was reduced around the world, except for Asia where the activity continued to grow. In 2018 in comparison with 2017 investments into a venture capital in Asia grew by 42%, and the volume of invested funds increased by 11%. Asia broke the records in all directions: the share of funds of financing of $100 million in size also more grew by 35% (up to 162), and the share of the new companies with investments more than $1 billion increased by 60% (openly 40 companies).
In the report no forecasts for 2019 become.
China for the first time became the leader in investments into startups
In the second quarter 2018 China for the first time bypassed North America in volume of a venture capital that was promoted by record fund raising in the amount of $14 billion by the Ant Financial Services Group company specializing in development of financial technologies.
According to the Crunchbase portal tracing and analyzing data on the raised funds for April, May and June, 2018 China received 47% of a world venture capital whereas the USA and Canada could raise 35% of funds. Some economists even consider that Crunchbase in the report underestimated investment volume in China as it monitored only relatively big capital investments.
Such splash in interest of investors in China can be caused by record investments into Ant Financial Services company. Took part in fund raising as new investors, including the Singapore venture capital funds GIC and Temasek Holdings, the American private firms Warburg Pincus and Silver Lake and also investment council of the pension fund of Canada and the private Chinese shareholders who supported issue of securities.
According to Crunchbase, generally investments into the Chinese stratapa, except for Ant Financial, grew slightly more, than in the first quarter 2018, and made 36% of a universal venture capital. In the report of Crunchbase it is said that thanks to investments the market value of Ant Financial Services exceeded $150 billion.
In China growth of number of startups as the government supports the innovation development strategies is observed, intending to make the country of more competitive. Growth of startups and investments happens against the background of the resumed efforts of the Chinese government to bring the country to new level. These ideas have something in common with a program speech of the secretary general of China Xi Jinping at the 19th congress of the Communist Party where among the main directions of future investments he listed the Internet, Big Data and artificial intelligence.
Venture capitalists invested billions of dollars in different spheres - from artificial intelligence to a blockchain, - without having resisted perspective to support the companies which, perhaps, will become the following Alibaba Group, Tencent or Baidu while the beginning startups cherish hope to become projects billionaires.
The potential market from 1.4 billion consumers who join in economy already now is at stake and increase the expenses in all spheres: from entertainments to health care. Private consumer spendings, medicine and health care and also information technologies appeared among those sectors of economy which in May, 2018 attracted the greatest financing, and, according to the data collected by the Chinese research firm Zero2IPO the earlier investments were entered, the they were higher.
In 2017 the investment transactions provided with a venture capital reached digits record at that time in $182 billion worldwide. At the same time their total amount grew by 28% in comparison with 2016, even when the number of transactions dropped by 4.7%, according to Preqin, the company of assessment of these external assets. In 2017 in the rating of investments the USA, the contribution to which projects was 42% or more than $76.4 billion, were in the lead, and China then took the second place – startups attracted 36% of the total cost of a venture capital to the country that made $65 billion
2017: Investors enclosed in the Chinese AI startups more, than in the American
In 2017 investments into the startups from around the world occupied with artificial intelligence technologies grew by impressive 150% and reached $10.7 billion whereas in the 2016th the amount of investments was $4 billion. The Chinese AI companies gained the lead on volumes of the involved investments and were ahead of the American colleagues. Read more here.
Market of venture investments into the USA
The American venture funds are more interested in the IT enterprises while in Europe demand for technology investments is much weaker. According to Ernst & Young, in 2013 the European companies attracted $7.4 billion venture investments, American — $33.1 billion. The universal value was $48.5 billion. According to calculation of the Thomson Reuters agency, in the second quarter 2014 the American venture capital companies closed 1114 transactions for the total amount of $13 billion.
By data, which with reference to Thomson Reuters are given in the report of The MoneyTree prepared by PricewaterhouseCoopers and the American National association of a venture capital (NVCA), in the first quarter 2011 startups - equipment manufacturers received only 111 million dollars of venture investments whereas in the first quarter the past – 138 million dollars, and in the fourth – 114 million dollars. Telecommunication startups received 142 million dollars – in almost twice less, than in the first quarter last year (254 million dollars).
At the same time 1.1 billion dollars whereas in the first quarter last year – 809 million dollars were invested in the companies which are engaged in development of programs. Some venture firms, including Accel Partners and Bessemer Venture Partners which were traditionally working with the American startups create new billion funds for investments in India and China.
In general in a quarter venture investment for the total amount of 5.9 billion dollars received 736 companies.
In the first quarter 2009 the volume of venture investments into the USA was reduced by 61%, having reached the lowest indicator for the last 12 years, said in the new report of PricewaterhouseCoopers, National Venture Capital Association and Thomson Reuters. Within the first three months 2009 the total amount of a venture capital was $3 billion. It is the lowest level from the first quarter 1997 when indicators in the amount of $2.96 billion were observed. In the same quarter 2008 the amount of investments was $7.74 billion.
According to the report, in 2009 investments received 549 companies in the USA whereas in their 2008 there were 997. This smallest quantity from the first quarter 1995.
Almost all industries faced reduction of venture investments. The greatest financing was received by the companies working at the market of software products - $614 million were spent for 138 companies that is 56% lower, than in 2008, on the amount of funds, and for 45% - by the number of the concluded bargains.
The total amount of investments into the Internet companies was $556 million - 58% lower, than in 2008.
One of the few industries in which, despite crisis, growth of investment volume is observed is health sector where investments grew by 6% and made $46.7 million.
Especially low was level of investments of the first round of financing of the companies - $596 million received 132 companies that is the lowest indicator from the third quarter 1994. For comparison, in 2008 the first round of financing was performed for 324 companies which received means in the amount of $1.7 billion.
Investments into pharmaceutical company Anacor Pharmaceuticals ($50 million), a mobile payment service of Obopay ($35 million) the Twitter microblogging service ($35 million) became the most noticeable transactions of the first quarter 2009.
The number of venture-backed companies which were sold during the first quarter was cut almost by half and was 56.
Investments into medical technologies
Main article: Investments into medical that
Crediting in Russia
- ↑ African Startups Raised 1.34 of $ Billion In 2019
- ↑ Venture capitalists bet big on the of $1.9 trillion payments industry
- ↑ Where invests a world corporate venture
- ↑ Fintech companies raised a record of $39.6 billion in 2018: research
- ↑ PitchBook: European VC investment rose of 4.2% in 2018, but number of deals dropped 25.9 of %
- ↑ Venture capital funding of cybersecurity firms hit record high in 2018: report
- ↑ Report: 2018 was the biggest year for venture capital funding since 2000
- ↑ China surpasses North America in attracting venture capital funding for first time as investors chase 1.4 billion consumers
- ↑ Open systems