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Average Venture Capital Deal Sizes Globally in 2012 – December 2012

by Gemma Morris

  • 20 Dec 2012
  • PE

In 2012 to date, as at December 20th, there have been 5,005 venture capital deals announced globally with an aggregate value of $39bn. These venture capital investments have been made across a range of different stages, from very early stage seed and angel financings to larger sized growth capital and later stage investments.

Looking at the average value of venture capital deals by stage since 2008, angel and seed stage deals have remained consistent throughout the period, fluctuating between an average deal size of $0.9 million and $1.1mn, with the angel/seed deals averaging $1.1mn in size during 2012.

Across all other stages there was a decrease in average deal value from 2008 to 2009, as the effects of the global financial crisis affected the whole financial spectrum, with the average deal value then increasing between 2009 and 2010.

Since 2008, the average deal size peaked across all stages in 2011, with the venture capital industry beginning to emerge from the immediate effects of the global financial crisis. This peak in 2011 was especially prominent for growth capital and expansion deals, which saw a 124% increase in average value from 2010 to 2011, from $12.5mn in 2010 to $28.1mn in 2011. Similarly, there was a notable increase of 73% in the average value of series D and later stage deals between 2010 and 2011, from $22.3mn to $38.6mn respectively.

Average deal values in 2012 are generally lower in comparison to 2011, but are comparable to 2010 figures.  In 2012, series A financings averaged $6.7mn, down slightly from an average of $7.1mn in 2011. Series B and C rounds have also seen a slightly lower average financing size this year in comparison to 2011, with $11.8mn and $21mn in 2012 for Series B and C respectively, in comparison to $7.1mn and $13mn respectively in 2011. The average financing size of Series D in 2012 stands at $31.4mn, with growth capital deals averaging $22.3mn.

With the global venture capital industry seeing an increased prominence in early stage seed and angel deals in 2012, as early stage deals of this type up almost 80%, the industry has witnessed some declines in average deal size across other stages. However, the average size of deals within the industry in 2012 has neared 2010 levels, and surpassed average financing levels seen in 2009.

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