US VC-backed deals down 16% year on year

US VC deals fall for the third consecutive quarter in Q1’20: 9% QoQ and 16% YoY according to the PwC & CB Insights US MoneyTree Report 2020. In March 2020, US deals decrease 22% YoY, with some of the decline attributable to the COVID-19 pandemic. Nonetheless, funding still rises 14% QoQ on the back of larger deals.

Nearly half of all US funding in Q1’20 comes from mega-rounds: Despite a slowdown in deals at the end of the quarter, 58 US companies raise rounds worth $100M or more in Q1’20, close to the record of 67 in Q2’19. 21 of these rounds took place in March 2020, suggesting COVID-19’s impact may become more apparent in Q2’20.

The number of unicorn companies reaches a new high, but aggregate valuation is falling. The number of VC-backed startups valued at $1B+ continues to rise, hitting 204 private companies in Q1’20. However, aggregate valuation dips for the second consecutive quarter, to $624B.

Global deal activity and funding see YoY declines. North America, Asia, and Europe see combined funding of $50B in Q1’20: falling 10% in Q1’20 compared to Q1’19. Asia sees the largest drop in funding, deal activity, declining 20% YoY, compared to declines of 17% in North America and 10% in Europe. Some of the decline is likely attributable to their earlier outbreak of the pandemic.

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