In the first quarter of 2018, 1,683 companies raised $28.2 billion in venture capital funding, according to data provider Pitchbook. The quarter marked the fourth consecutive quarter of more than $20 billion invested and the largest amount invested in a single quarter since at least 2006. Continuing the trend from 2017, more value was spread across fewer deals.
Angel and seed financings were a significant driver for the decline in activity, yet deal value for these financings remained at heightened levels. In fact, in every quarter since the fourth quarter of 2012, more than $1 billion has been allocated to angel and seed deals. Prior to this, only three times has the $1 billion mark been reached, according to Pitchbook data.
Both early and late-stage financings reached record highs in terms of deal value, as the trend towards larger deal sizes continues a clear path of growth.
Fundraising was slow in the quarter, with VC funds closing an estimated $8 billion across 54 vehicles. Fifty percent of closed funds in the first quarter were under $50 million, which pulled down the median fund size. It was the first time since 2015 that sub-$50-million funds accounted for 50% of fund count.