VC Figures Double in Last Five Years, Seed Stage Drops Significantly

 

Last fall, we talked about a couple of reports that suggested entrepreneurs were having an easier time finding capital. The recent 2014 year-end report from the National Venture Capital Association confirms it -- as long as you aren't talking about startup or seed stage capital.

According to the report:

Venture capitalists invested $48.3 billion in 4,356 deals in 2014, an increase of 61 percent in dollars and a 4 percent increase in deals over the prior year. In the fourth quarter alone, $14.8 billion went into 1,109 deals.

Compare that to 2010 when things were looking quite bleak and the total for the entire year was only $23 billion. While the industry is still nowhere near its level before the bubble burst — $105 billion in 2000, the huge rebound can definitely be seen as a big step in the right direction.

Unfortunately, the news looks less rosy for those just starting out. Most of the dollars ($19 billion) still go toward expansion stage investments while less than $1 billion goes to startups and seed-stage investment. The seed stage figures dropped considerably (29 percent) from the previous year and the number of deals for that stage (192) fell to its lowest point since 2002.

San Francisco and Silicon Valley remain the obvious epicenter, but venture deals reached 160 metropolitan areas across the U.S. -- including non-traditional locations like Flint, Michigan and Huntsville, Alabama.

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mark marich

Mark Marich

Mark Marich is the executive vice president of Global Entrepreneurship Week. Since 1998, Marich has provided communications leadership on several national initiatives and more than 100 public forums covering a wide range of policy issues, including: entrepreneurial growth & economic development; health care; renewable energy; telecommunications; regulatory reform; and, workforce development.