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Writer's pictureService Ventures Team

2020 US Venture Investment Trends in COVID Era




Summary of Pre-Seed, Angel & Seed Deal Trends in US Information Technology Sector from 2018Q1 to 2020Q2


2018Q2 Stats: Deal Count: 822, Total capital Raised: $2.58B, Median Deal Size: $1.41M, Median Post Valuation: $9.60M


2019Q2 Stats: Deal Count: 767, Total capital Raised: $1.34B, Median Deal Size: $1.40M, Median Post Valuation: $10.00M


2020Q2 Stats: Deal Count: 578, Total capital Raised: $1.29B, Median Deal Size: $1.13M, Median Post Valuation: $7.58M


Service Ventures Take:

The sharp decline in number of angel/seed stage deal counts is visible for 2020Q2 in US information technology sector. The market uncertainty has clearly translated into decline in median Pre-Money valuation of startups if they get funded.


Summary of Early Stage (S-A/S-B) Deal Trends in US Information Technology Sector from 2018Q1 to 2020Q2


2018Q2 Stats: Deal Count: 711, Total capital Raised: $6.06B, Median Deal Size: $6.25M, Median Post Valuation: $36.00M


2019Q2 Stats: Deal Count: 703, Total capital Raised: $7.00B, Median Deal Size: $5.47M, Median Post Valuation: $40.00M


2020Q2 Stats: Deal Count: 452, Total capital Raised: $3.88B, Median Deal Size: $6.07M, Median Post Valuation: $47.42M


Service Ventures Take:

Number of early stage deal counts also declined by almost 35% in 2020Q2. But the median Pre-Money valuation has increased as investors have flocked to cluster deals, highlighting concentrated activities around selected worthy startups.


Summary of Late Stage (S-C/S-D+) Deal Trends in US Information Technology Sector from 2018Q1 to 2020Q2


2018Q2 Stats: Deal Count: 438, Total capital Raised: $26.18B, Median Deal Size: $10.82M, Median Post Valuation: $89.83M


2019Q2 Stats: Deal Count: 505, Total capital Raised: $16.96B, Median Deal Size: $12.70M, Median Post Valuation: $127.50M


2020Q2 Stats: Deal Count: 515, Total capital Raised: $19.76B, Median Deal Size: $10.48M, Median Post Valuation: $321.74M


Service Ventures Take:

Number of late stage deal counts have increased slightly w.r.t. prior quarters. The total amount invested across late stage deals is also higher and suggests steady confidence in late stage market potential as is evident by high valuations. This confidence is supported by several recent positive news around probable IPO of late stage startups.



/Service Ventures Team

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