October 7, 2016
We reported on one relevant data point from Q3 2016 yesterday: Seed Investment Dollars Dropped 20 Percent Since Last Quarter. Now, here’s a look at all the other numbers, including one that stands out as the only upward shifting data point in the entire quarterly report on U.S.-based startups: Series B dollars have more than doubled since Q3 2015.
The info comes from Mattermark, which has a chart broken down by rounds and the percentage change since both last quarter and this quarter last year. Everything — seed and Series A, C, D and E — are all down, both in the amount of rounds overall and the amount of dollars in those rounds. Most drops are in the double digits. The Series E rounds are down a stunning 82 percent since last quarter. From Mattermark:
“That implies that the third quarter climate for startups raising capital has both gotten worse on both a short, and medium-term timeframe. Not great news for the fundraising founder.”
So Is Anything Looking Good?
Just one metric is up: Series B dollars are up 207 percent since Q3 2015. However, even these numbers are down since Q2 2016, thanks to even more massive series B deals last quarter. Overall dollars invested are down farther than any quarter in the last seven, while overall rounds are up on average just slightly from last quarter.
Overall: VC investment is continuing to constrict. Even Q4 2016 isn’t looking good.
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