Based on preliminary data from Pitchbook, venture capital firms invested 6.7% more capital in October than in September, rising from $10.5 billion to $11.2 billion. However, deals were larger, as total deals counts fell by 85 to 707, a 10.7% decline. This trend of fewer deals but more invested capital has been continuing for three months now, constituting a 52.8% increase in capital per deal over the period.
$97.5 billion has been invested year-to-date, across 9,962 deals, a 37.6% increase and 20.8% decrease, respectively. These figures represent a 73.7% increase in capital per deal, from $5.64 million to $9.79 million. The largest VC deal last month was a $1.25 billion investment into Epic Games, the maker of the popular Fortnite video game, led by KKR & Co., Vulcan Capital, and Kleiner Perkins.
According to Pitchbook, in 2017, VCs invested more than $1 billion in 11 startups that shut down. However, 2018 has been more dramatic, with investors pouring approximately $1.4 billion into 12 startups that are now out of business. Those companies represent a total $9.9 billion valuation, the largest being Elizabeth Holmes’s infamous startup Theranos, which was valued at approximately $9 billion.