Wednesday, April 15, 2020

Report: Strong Q1 2020 In Venture Capital, But Downturn Expected

The National Venture Capital Association (NVCA) says that Q1 2020 venture capital investments had a "strong showing" in Q1, however, it expects that the impending economic downturn due to the COVID-19 pandemic will slow activity through the rest of the year. According to the NVCA, and its PitchBook-NVCA Venture Monitor, there was $34.2 billion invested across 2,298 deals in the first quarter of 2020, partially as a result of "record-high" levels of capital raised by VC funds in 2018 and 2019. The NVCA said that entrepreneurs mostly benefited from "high valuations and deal terms"--at least, until the fallout from the cornavirus hit. The NVCA noted that the venture market's increasing reliance on large exits to return capital to investors will "be tested" during the remainder of the year.

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