Wednesday June 19, 2019

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Silverman: VC Funding Market Remains ‘Depressed’

In a presentation of the PriceWaterhouseCoopers (PwC) 15th Annual MoneyTree Report at the New York Technology Council meeting, PwC partner David Silverman said the market for venture-capital (VC) funding and successful exit strategies remains depressed.

According to the report, VCs funded 2,795 rounds last year, compared with 3,985 in 2008.  In addition, median
deal sizes were also down. The average round at $2.8 million last year,
compared with $3.3 million in 2008 and $3.8 million in 2007.

Also over the last year, the study found a shift from later stage
companies to earlier stage companies, Silverman said.  Investments in
later stage companies comprised of nearly $6 billion with 799 deals,
down 44 percent over the prior year.  Companies receiving expansion
funding dropped 47 percent with $5.4 billion allocated to 801
businesses.  Early stage funding dropped only 13 percent covering 883
companies for a total of $4.6 billion, though it jumped 32 percent in
the fourth quarter, compared to the prior year and up 51 percent from
the prior quarter.

The survey did not take into account the growing presence of angel
funding, Silverman said in an interview quoted by Redmond Channel Partner, "You are seeing the early
stage angel investors come in and filled the need for funding."

Redmond Channel Partner

> MoneyTree: Tech Tops NY Metro Investments in 3rd Qtr