Venture capital in the U.S. continues to flow at historically high levels, largely driven by later stage deals, with total invested capital on pace through August for an all-time record in both the Southeast ($4.2B) and nationally ($70B). Exits have declined moderately, primarily due to lower corporate M&A activity, though the Southeast received a significant bump from PetSmart’s $3.4B acquisition of Chewy. The bright spot of exit activity is that the IPO market appears to be picking up.
In the near to mid-term, we are bullish on the Southeast market and cautiously optimistic about the U.S. as a whole. We see no signs of a widespread bubble bursting over the horizon, but perhaps a healthy gradual correction, particularly in certain regions. While accounting for only a modest portion of the national activity, the Southeast remains one of the most productive regions in terms of exit value relative to dollars invested.
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2017 Projections (based on pacing through Aug) vs. 2016
Note: includes $10M+ exits only.
See detailed methodology overview in full report.