Venture capitalists invested $17.5 billion in 1,189 deals in the second quarter of 2015, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.
Quarterly venture capital (VC) investment increased 30% in terms of dollars and 13% in the number of deals, compared to the first quarter when $13.5 billion was invested in 1,048 deals.
The second quarter is the sixth consecutive quarter of more than $10bn of venture capital invested in a single quarter.
In Q2 2015, the software industry continued to receive the highest level of funding of all industries, increasing 30% from the prior quarter to $7.3bn. The number of deals also increased to 491, an 11% increase compared to the first quarter.
The Media & Entertainment industry was the second largest industry for dollars invested with $2.7bn going into 118 deals, an increase of 127% in dollars and a 34% rise in total number of deals.
The Biotechnology industry was the third largest total for dollars invested in Q2 but was second in terms of number of deals with $2.3bn going into 126 deals, a 32% increase in dollars invested but flat in number of deals compared to the prior quarter.
Overall, investments in Q2 in the Life Sciences sector (Biotechnology and Medical Devices combined) accounted for $3.1bn going into 201 deals, a 41% increase in dollars and flat in deals when compared to Q1 2015.
Ten of the 17 MoneyTree industries experienced increases in dollars invested, including Consumer Products & Services (+129%), Media and Entertainment (+127%), Medical Devices & Equipment (71%), and Financial Services (+17%).
Seed stage investment was up 85% in dollars and 81% in deals with $169m invested into 47 deals in the second quarter. Early stage investment was up 58% in dollars and 16% in deals with $5.8bn going into 593 deals. Seed/Early stage deals accounted for 54% of total deal volume in Q2, compared to 51% in the prior quarter. The average Seed stage deal in the second quarter was $3.6m, up from $3.5m in the first quarter of 2015. The average Early stage deal was $9.8m in Q2, up from $7.2m in the prior quarter.
Expansion stage investment was up 38% in dollars and 12%in the number of deals in Q2, with $7.3bn going into 328 deals. Overall, Expansion stage deals accounted for 28%of venture deals in Q2. The average Expansion stage deal was $22.5m, up from $18.2m in Q1 2015.
Investments in Later stage companies fell 5% to $4.2bn going into 221 deals in the second quarter. Later stage deals accounted for 19% of total deal volume in Q2, down from the prior quarter. The average Later stage deal in the second quarter was $18.8m down from $20.2m in the prior quarter.
First-time financing dollars increased 43% to $2.6bn in Q2 while the number of deals was up 18% from the prior quarter, rising to 373. First-time rounds accounted for 15% of all dollars and 31% of all deals in the second quarter.