Now that 2017 is over, it is evident that last year was monumental for venture markets. According to the National Venture Capital Association, 2017 was the first time that over $84 billion in capital was invested since the dot-com era. A total of $84.2 billion was invested in 2017, compared to $72.4 in 2016 and $79.3 in 2015.
Interestingly, while the total number of capital invested increased, the total number of deals closed decreased roughly 6 percent. The data reveals that 8,076 deals were finalized in 2017, compared to 8,635 in 2016 and 10,406 in 2015.
Not only are investors putting more of their money into fewer companies, but the data also reveals that these businesses are pursuing institutional financings later than in years past. The median age of companies raising institutional angel and seed rounds has increased to 2.42 years. The businesses raising funds at the Series A round come in around 3.5 years, and those at the Series B round have a median age of 5 years.
One of the most staggering details surrounding 2017 is that venture capital financings of $50 million or more accounted for almost half of all funds invested in the entire year. Additionally, venture capitalists invested over $19 million in unicorn companies.
Overall, 2017 was a year of optimism and strong investment.