According to the MoneyTree™ Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters, venture capitalists invested $16.3 billion in 1,070 deals in the third quarter of 2015.
Total dollars deployed to startup companies for the quarter decreased 5% and total deal count was down 11% compared to the second quarter when $17.3 billion was invested in 1,202 deals. In addition, the third quarter marks the seventh consecutive quarter of more than $10 billion of venture capital invested in a single quarter. The $47.2 billion invested in the first three quarters of 2015 is higher than each of the full year totals for 17 of the last 20 years.
Having a look at the industries, the Software industry continues to receive the highest level of funding of all industries, receiving $5.8 billion going into 412 deals for the quarter, despite being down 21% in dollars and 17% in deals compared to the second quarter.
The Biotechnology industry received the second largest amount for the quarter, with $2 billion going into 121 deals, with dollars invested and number of deals remaining relatively flat over the previous quarter.
Investments in the Life Sciences sector (Biotechnology and Medical Devices combined) during the third quarter accounted for $2.9 billion going into 194 deals, flat in dollars and declining 3% in deals. Life Sciences company investments accounted for 18% of all capital deployed to the ecosystem in the third quarter.
Media & Entertainment companies received the third largest amount for the quarter with $1.4 billion deployed across 90 deals, an 18% increase in dollars compared to the second quarter despite a 24% decline in number of deals.
Speaking about the stage of development, dollars invested in seed stage companies rose by 23% during the third quarter, totaling $214 million in 55 deals and representing a small 1% of all investment dollars for the quarter and 5% of all deals. Early stage investment declined 7% in dollars and 8% in deals with $5.4 billion going into 558 deals. Seed/early stage deals accounted for 57% of total deal volume in the third quarter, compared to 54% in the prior quarter. The average seed stage deal in the third quarter was $3.9 million, up from $3.6 million in the second quarter.
Expansion stage investment was down 14% in dollars and 22% in deals for the quarter, at $6.3 billion and 257, respectively, from the previous quarter. Expansion stage accounted for 24% of all venture deals in the third quarter.
Investments in Later stage companies increased 10% to $4.4 billion going into 200 deals in the third quarter. Later stage deals accounted for 19% of total deal volume for the quarter and remained relatively flat from the second quarter.