Venture Capital Funding of U.S. Startups

Venture Capital Funding of U.S. Startups

Proof Point

Venture capital funding on U.S. startups dropped 20% to $59 billion in 2016 from $74 billion in 2015, with deals decreasing from over 5,500 to 4,800

Venture Capital Funding of U.S. Startups

2007 – 2016 (US$ billions and number of deals)

Proof Point Findings

  • U.S. Venture Capital Funding – Total amount invested by venture capital firms in U.S. based startups
  • Significant 2016 Investment Decline – Investment value dropped 20% from peak $74 billion in 2015 to over $59 billion in 2016, while number of deals decreased from more than 5,500 to close to 4,800
  • 2016 Top Industries – Close to $47 billion or 80% of total 2016 investments went to Internet Software and Services ($22.2 billion), Mobile and Telecommunications ($13.6 billion), and Healthcare ($11.1 billion)
  • Possible Investment Trend Factors – Include equity market decline in early 2016, growing concerns on overvaluation of unicorn companies and liquidity, increasing focus of venture capital firms on non-U.S. based startups, and declining VC-backed exits

Market Disruption


Date Last Updated

April 23, 2017

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