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Average Early Stage Venture Capital Deal Size by Industry – January 2013

by Jonathan Parker

  • 25 Jan 2013
  • PE

While the average size of early stage venture capital deals, including seed, angel and series A financings, stood at $3.4mn in 2012, this figure varied greatly between industries. For instance, companies operating in the healthcare sector received an average of $6.0mn in their early stage financings in 2012. This compares to an average of $8.4mn in 2011, $8.6mn in 2010, and $10.5mn in both 2009 and 2008, demonstrating a gradual decline in value. Although 2012 saw a significant fall of 28% in the average value of early stage healthcare financings, the clean technology industry witnessed an even greater drop of 53%, from an average of $7.7mn in 2011 to $3.6mn in 2012. In contrast to the healthcare industry, this recent drop in average value of early stage clean technology deals follows an increase from 2010 to 2011, which saw average deal sizes of $5.0mn and $7.7mn respectively.

Several other industries, including business services, materials, semiconductors and electronics, telecoms and internet witnessed a fall in the average value of early stage financings from 2011 to 2012. Conversely however, the software industry saw a slight increase in average deal size, from $3.5mn in 2011 to $3.7mn in 2012. This sector has in fact seen the least fluctuant average early stage deal size of any industry across the period 2008-2012, peaking at $4.2mn in 2008 and reaching a low of $3.2mn in the following year. On the other hand, early stage financings for companies operating in the internet sector have been more variant, averaging $2.3mn in 2012, compared to $3.5mn in 2011, $3.0mn in 2010, $2.8mn in 2009 and $4.1mn in 2008.

Contributing towards the healthcare sectors dominance in terms of average value of early stage financing in 2012 was  the $49mn series A financing of Histogenics Corporation in July, and the $45mn investment in Kalidex Pharmaceuticals in November, again a series A deal.

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