VC-backed Companies Cautious


    After a furious check-writing phase through early-to-mid 2015, investors in VC-backed companies remain cautious in 2016 as major economies continue to face economic uncertainty and startup companies experience a difficult exit environment. The KPMG International and CB Insights ‘Venture Pulse’ shows US$24.1 billion was invested in venture capital (VC) across 1,983 deals globally in the third quarter, representing a very slight deal increase from the second quarter, but a 14 per cent decline in total quarterly funding. Although the deal volume is still quite healthy by pre-2014 standards, this was the lowest quarter of deal funding since the third quarter of 2014. Funding trended downwards across the major venture hubs of North America, Europe, and Asia.