Proof Point
U.S. venture-backed exit activity experiencing slow down since 2015 after reaching historic level in 2014 as startup companies increasingly opt to stay private longer
Annual U.S. Venture-Backed Exit Activity
2007 – 2017 H1 (US$ billions)
Proof Point Findings
- Venture-Backed Exit – Value of venture-backed startup exits, such as acquisitions, selling of shares to public through Initial Public Offering (IPO), or buyouts which are buying of shares until acquirer has controlling interest of firm
- Slight Exit Value Increase – Exit value of venture-backed companies grew 3% annually between 2007 and 2016, from $40.5 billion to $54.3 billion
- Decline Since 2015 – Exit value reached peak $82.3 billion in 2014 out of 1,057 exits made, but declining since then to $48.6 billion in 2015 and $54.3 billion in 2016
- Most Popular Exit Strategy – Though majority of exits still coming from acquisitions, buyouts are increasingly becoming more popular
- Most Common Software Exits – Software exits make up 40% of exit value each year since 2014
- Key Drivers – Include startups staying private for longer and intensifying competition from corporations
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Market Disruption |
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Sector |
Cross-sector
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Date Last Updated |
September 5, 2017
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