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Private Equity-Backed Venture Capital Deals - Q2 2012

by Jessica Hull

  • 12 Jul 2012
  • PE

Compared to data from 2010, Q2 2012 has been a record quarter in terms of the number of PE-backed venture capital deals, with 1,249 deals valued at $10.9bn. This represents an increase in terms of value and aggregate value compared to the previous quarter, when 1,074 deals were valued at $9.4bn. The aggregate value of VC deals this quarter has made a slight recovery from Q1 2012, which recorded the lowest values since Q4 2010. Similarly to the previous two years, the average value of deals in 2012 YTD increased in value from Angel/Seed rounds through to Series D and later rounds. In all rounds so far this year, the average value of VC deals has been less than the preceding year.

Unsurprisingly, two thirds of all PE-backed VC deals this quarter were located in North America, with a record 839 VC deals taking place in this region. One fifth of deals were recorded in Europe and nearly 10% of deals took place collectively in China, India and Israel.

Portfolio companies in the internet sector naturally attracted more investment than any other industry, with a quarter of all VC deals, in terms of the proportion of number and aggregate value of VC deals, taking place in this industry. Following this sector, the most popular industries in terms of number of deals were healthcare, software and related industries, and telecoms. However, clean technology surpassed software and telecoms in terms of the proportion of aggregate value of VC deals by industry.

The highly anticipated $1.6bn Facebook IPO in May 2012 made Q2 2012 a lively quarter. The social networking site priced its IPO at the top end of its expected IPO price range at $38 per share, selling 421 million shares and listing on the NASDAQ. Other notable VC exits this quarter were the acquisition of Yammer by Microsoft for $1.2bn, as well as the largely publicised $1bn acquisition of the mobile application Instagram by Facebook. Also this quarter, Fisker Automotive raised its largest round of funding so far, with Kleiner Perkins Caufield & Byers and New Enterprise Associates contributing $392mn in funding.

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