Despite talk of a potential tech bubble, venture capital investors poured $58.8 million into startups in 2015, making it the biggest year for VC funding since 2000, according to a report released today by audit giant PwC and the National Venture Capital Association.
While the pace of investments slowed throughout the year (the $11.3 billion invested in the fourth quarter was down 32 percent from the third quarter), venture capitalists are already showing their appetite for continued investment in 2016 — despite the swooning stock market.
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VC backed companies have reportedly raised more than $4.8 billion this year, led by a $752 million round raised by Uber competitor Lyft, and a $192 million round for travel search site Skyscanner.
“The convergence of technology across sectors is becoming increasingly important and has emerged as a common thread as companies with innovative, disruptive technologies and business models continue to catch the eyes of investors,” Tom Ciccolella of PwC said in a statement.
Companies that provide financial services, consumer products and services and healthcare services saw the biggest increase in investments in 2015.
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While there were 74 deals in 2016 that included investments of at least $100 million, more than half of all deals in the year went to seed and early-stage businesses (including 1,400 raising money for the first time). They weren’t all located in Silicon Valley either — entrepreneurs in 46 states raised money in 2015.
The growth of venture funding in recent years has allowed startups to stay private for longer — and for numerous so-called “unicorns” to attain valuations in excess of $1 billion.
