VC keeps disrupting
US venture capitalists last year pumped $48.3 billion into 4,356 deals, a 61% spike on the previous year in value teams, and a 4% increase in the number deals, according to the MoneyTree Report from PwC and the National Venture Capital Association. Internet-outfits grabbed $11.9 billion in 2014, the highest level of Internet-specific investments for 14 years. Dollars going into software companies accounted for 41% of total VC investments.
“For the first time in MoneyTree history, we saw two deals exceed one billion dollars and more than 40 megadeals — which are investments exceeding $100 million,” says Mark McCaffrey, global software leader and technology partner at PwC. “In addition, there’s been an influx of private equity investors at a level we’ve not seen previously. As a result, entrepreneurial companies are capable of disrupting entire industries and leveraging investment dollars to expand to the global markets.”
Note how “disruption” crept in there, a word which tech boosters managed to make synonymous with pretty much any start-up in 2o14, whether they be working up apps delivering pizzas with your favourite topping, or bringing yet another taxi cab to your door.
But maybe we’ve got this all wrong.
The US has a wealth of ground-breaking start-ups that require the financial capital and business expertise of venture investors to take their businesses to the next level, explains Bobby Franklin, CEO of the NVCA. “Whether it be a medical device company whose products will save thousands of lives or the software company whose service will transform an entire industry, the venture community is investing in the future of our country.”