Bubblicious? Global VC deal sizes keep rising
[p=30, 2, left][b][font=Arial][size=24pt][url=http://finance.fortune.cnn.com/2011/05/03/bubblicious-global-vc-deal-sizes-keep-rising/][color=#004276]Bubblicious? Global VC deal sizes keep rising[/color][/url][/size][/font][/b][/p][p=30, 2, left][font=Arial][size=8.5pt]Posted by [url=http://finance.fortune.cnn.com/author/danielprimack/][color=#004276]Dan Primack[/color][/url][/size][/font][/p][p=30, 2, left][font=Arial][size=8.5pt]May 3, 2011 11:03 am[/size][/font][/p][p=30, 2, left][font=Arial][size=9pt][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]Last month, I [/color][url=http://finance.fortune.cnn.com/2011/04/15/venture-capital-data-shows-signs-of-bubble/][b][color=#004276]argued[/color][/b][/url][color=#000000] that U.S. venture capital data was showing evidence of an investment bubble. More money going into fewer companies, which means that VCs are expecting higher cash-on-cash returns. Concentrating rather than diversifying.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]Now we have new numbers showing that this is a global phenomenon.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]Dow Jones VentureSource [/color][url=http://www.dowjones.com/pressroom/releases/2011/05032011-1QGlobalVC-0137.asp][b][color=#004276]today said[/color][/b][/url][color=#000000] that VCs invested $9.8 billion into 967 deals last quarter for companies based on the U.S., Europe, Canada, mainland China and India. That's a 20% increase in dollars but a 7% decline in funded companies from the first quarter of 2010.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]The largest differential occurred in Europe, with a 17% increase in investment but a 35% drop in the number of deals (a record low). In fact, the 182 companies funded represents the lowest such figure since VentureSource began keeping track in 2000.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]Mainland China experienced drops in both dollars and companies, but average deal size still rose. Moreover, median deal size hit a record high of $15 million (20% bump from Q1 2010).[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]As for median investment sizes in other regions, VentureSource reports a major increase in Canada, mild accelerations in the U.S. and Europe and decreases for both India and Israel.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]And, remember, this is all supposed to be in an age of lean startups that can globalize on the cheap...[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt][color=#000000]Overall, 66% of all global VC dollars went to U.S. companies. Europe placed second with 16%, while China followed closely with 15%.[/color][/size][/font][/p][p=30, 2, left][font=Arial][size=10.5pt]Tags: [url=http://finance.fortune.cnn.com/tag/venture-capital/][b][color=#004276]Venture Capital[/color][/b][/url][/size][/font][/p]
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