TrueBridge Market Analysis: State of the Venture Capital Industry
As part of our annual analysis of key venture capital industry trends, this report examines fundraising, investments, valuations, exits, and net returns to limited partners.
2015 began as another banner year for fundraising, investing, and valuations. Even as the longtime trend of venture capital consolidation continued, and the number of firms raising new funds decreased, we saw NEA raise the largest-ever venture fund at $2.8 billion. We saw $72.3 billion of venture capital invested across all stages—a post-bubble record. More milestones were reached as seed and early stage valuations reached post-bubble highs in 2015, while late-stage valuations reached an all-time high for the third consecutive year. But beginning in the second half of 2015, the IPO and M&A markets showed signs of weakness, and public markets grew increasingly volatile, causing VCs to grow more cautious.
Overall, we believe we are witnessing both a return to the “old normal” and the beginning of a new era of innovation.