Abstract: although in 2016 to reduce the number of VC fund investment is two times in 2015, but to fill vacancies in the market of corporate venture capital (CVC) it is exactly the opposite: more than 50% of the enterprise risk investors said they planned to invest more in 2017.
just over a year ago, many venture capitalists were predicting the coming winter of venture capital". To be fair, the author is one of the best. But when we entered in 2017 of February, VC investment market is booming: Snap has applied for IPO, AppDynamics was also Cisco to $3 billion 700 million acquisition. You seem to be skiing in California in January after the rain and snow to see the winter.
so, Suster, what happened? Where did the capital go?
actually, winter has come, and I have the data to prove it. But the reality is that global warming has greatly reduced the impact of the capital winter. In 2017-2018, I have a very positive attitude towards the financing of entrepreneurs. Of course, does not rule out some Trump action will affect our good state.
first of all, in order to prepare our Upfront annual VC industry status report, in 2016 of December we implemented the annual VC and LP survey. We found that the reduction in risk investment in 2016 was two times that of 2015, and more than 30% of VC reduced investment.
risk investors not only slows their pace of investment, at the same time, they also clearly pointed out that valuations in decline: surveyed 76% of the risk of investors that 2016 investment valuation is much lower than in 2015.
therefore, venture capitalists can invest in lower prices and more favorable terms. Overall, this is more conducive to investors than in 2015. In the past year, the board of directors of the company undertaking more stringent control of burn rate, promote the company to a more pragmatic business model. About 2/3 of venture capitalists see the cost reduction in 2016 as a norm – a clear indication of the arrival of a cold winter.
if the VC investment, lower valuations, burn rate, then the capital of winter what
The first thing that
makes clear is that investors from China, Singapore, the United Arab Emirates, Saudi Arabia, Japan and other regions are taking part in filling in the gaps in the investment generated by VC.