Preqin’s Venture Deals Analyst contains detailed information on 9,164 deals in the internet industry since 2007, with a combined value of $65.5bn. The biggest deal during this period is the $1bn growth capital funding of social networking website Facebook, where Goldman Sachs received a minority stake, and was part of a total $1.5bn round which also saw DST Global participate.
The internet sector in Q1 2014 saw 385 deals valued at an aggregate $4.9bn, the highest value in any quarter since before 2007. Seed investments comprised 20% of the total number of such deals in Q1 2014, but only accounted for 1% of the aggregate value during this period. The round which saw the highest aggregate value was series B at $966mn, 17% of the aggregate value, from 49 deals. Series B activity in Q1 2014 featured two deals valued at or over $100mn; $157mn invested in Wayfair, an online retailer of home product, and $100mn invested in Tutorgroup, an online language-learning platform.
Unsurprisingly, the top three locations in terms of number of deals in the period 2007-2014 YTD is the US, China & UK. The US dwarfed all other locations, accounting for 61% of all internet activity since 2007. China accounted for 5.8% and UK 5.6%. When looking at the top three countries for aggregate deal values, a different pattern emerges, with the US accounting for 61% ($40bn), while China is second with 16% ($10.4bn), and India ranks third, making up 4% ($2.6bn).
Since 2007, the internet sector has seen a sporadic trajectory in terms of the number of venture capital deals, with a 4% increase in 2008, directly leading to its biggest drop of 12% in 2009, possibly off the back of the economic downturn. So far in 2014, 451 internet-sector venture capital deals have been completed, accounting for just 5% of total venture deal activity since 2007. However, in terms of aggregate deal value, 2014 YTD represents 10.4% ($6.8bn) of all activity, which is more than the entire aggregate deal value of 2007 (8.2% at $5.4bn), 2009 (5.8% at $3.8bn) and2010 (9.9% at $6.5bn).