U.S. Venture Capital Market – Online and Software Industry

VC investment activity jumped in 2014 by 53% over 2013, growing from $45 billion to $69 billion. The market has sustained momentum with $79 billion in 2015 and $71 billion in 2016. 2017 activity is anyone’s guess at this early stage.

Pitchbook results by year

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Software companies are some of the biggest consumers of data centers. For Q1 2017, 37% of transactions occurred in the software market. In Pitchbook’s taxonomy, “software” is comprised of everything from social media sites, SaaS, Cloud, and  traditional on-prem installed software.

Also for Q1 2017 seven of the top 10 financings were for the software category (Airbnb, SoFi, Instacart, letgo, DraftKings, and Zoom Video), and three of the top 5 IPOs were software(Snap, MuleSoft, and Alteryx).

pitchbook software charts

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Considering the heavy focus on the software sector, it’s not too surprising that the majority of deal activity in the west coast tech sector states of California, Oregon, and Washington.

Pitchbook Q1 17 results by state

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Pitchbook’s full report can be downloaded by clicking here.

Recent Research Highlights:

2017: Data Center Pricing, Supply & Demand: http://wiredre.com/2017-data-center-pricing-supply-demand-2017/

2017-2020 Data Center CAPEX Investment: http://wiredre.com/40-billion-capex-spend-for-big-6-u-s-data-center-companies-2017/

Investment Bank Advisory: http://wiredre.com/wiredre-completes-international-market-advisory-for-top-5-investment-bank-2016/

Infrastructure Cost Perspectives: Cloud, Colocation, Build-To Suit: http://wiredre.com/infrastructure-cost-perspectives-cloud-colocation-build-suit/