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Venture Capital Deals Hit New Heights with Time to Spare

by William Clarke

  • 09 Oct 2018
  • PE
  • VC

Q3 2018 saw 3,894 venture capital-backed deals announced worth a total of $69bn. This brings total year-to-date deal making to $195bn, meaning that the first three quarters of 2018 have already surpassed 2017’s full-year record of $189bn in venture capital deals.

Deal activity in North America and Greater China was neck-and-neck: North America saw 1,592 deals worth $28bn and Greater China saw 1,112 deals worth $28bn. However, deals made in China dominated the largest transactions of the quarter: six of the 10 largest deals announced in Q3 were in China, with two deals in the top 10 made in the US. The largest venture capital deal announced this quarter was the acquisition of Hangzhou Mouth Phase Communication Network Technology Co., Ltd. by the goliaths Alibaba Group and Softbank. Deal activity in Europe lagged, with just 637 deals announced in the region for $5.2bn.

Exit activity, on the other hand, drew back from Q2 levels. A total of 280 venture capital-backed exits were made for a combined $31bn – although this is down from Q2’s record $72bn total, it is in line with previous quarters. Exits in North America accounted for the largest proportion of activity in the quarter, with the region seeing 176 exits for $17bn. There were a further 26 exits worth $9.8bn in Greater China.

*Figures exclude add-ons, grants, mergers venture debt & secondary stock purchases

For more Q3 2018 venture capital deals stats, please visit www.preqin.com/research.

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