February Deal Book – Funding Slows 64% As Mega Deals Dry Up

After soaring to USD12bn in January venture capital investment in February fell sharply to USD4.2bn. This was a fall of 64% compared to January and a year-on-year fall of 20%. It’s a sign that those that speculated January’s surge represented a last quick attempt to raise funding before capital became harder to get were right.

A lot of this drop was down to the lack of super-sized rounds. There were no USD1bn+ rounds in February, while there were four in January. While there were six USD100m to USD1bn rounds, this compared to eight in January. The largest round in February went to augmented reality firm Magic Leap which raised USD793.5m. It’s a huge sum, especially for a company that is yet to release a product.