waiting for markets to re-open. As the global economy recovered, investments
followed at a reasonable pace – but not at a velocity sufficient to compete with
pent up demand and competition for deployment of "sidelined" capital.
Eventually capital flooded the global markets in late 2013, resulting in a spike
in both dollars invested and valuations. This movement was further exacerbated
by a trend towards "seed investing", in which VC funds invested small amounts
of capital into numerous companies at the very earliest stages of development.
As a result, deal volume spiked along with valuations and invested capital. These
trends can be seen in the chart below:
Note: A spike in key investment indicators as 'sidelined' capital returned to the global VC market in 2013.
Sources:
Figure 1 A Decade of Venture Capital Investment
Investment velocity started to readjust to healthy levels in late 2016, with
deal activity returning to 2012/2013 levels. Most recently, Q3 2017 (the latest
quarter of available data) saw 2,369 VC financings globally.
1
This is a five-year
low, marking a 6% decline from the previous quarter and a 13% decrease year-
over-year from Q3 2016.
1
"Venture Pulse Q3 2017." KPMG Enterprise, 11 Oct. 2017, page 6.
35
Taiwan Economic Forum
Volume 15, Number 4
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