By Pete Settles
KPMG Enterprise has just released its Q3 2019 Venture Pulse report that revealed investment in the U.S. continues strong with $28.2 billion invested across 2,265 deals, even against a backdrop of uncertainty in the U.S. economy and public markets.
The quarter’s top deal in the U.S. and globally was the $785 million raised by e-cigarette manufacturer Juul Labs. While there were no billion-dollar deals this quarter, the U.S. continued to see numerous deals between $100 million and $500 million, across a wide variety of sectors, including financial services, mobility, automotive, healthcare and insurance. The top 10 deals also were spread out geographically across the U.S.
Corporate venture capital (VC) investment in the U.S. was solid during Q3 2019, with more incumbents across different industries recognizing the importance of investment in digital innovation in order to grow and retain market share. Given the large number of industries that remain ripe for disruption, and the complex challenges faced by incumbents across every sector, corporate VC investment is expected to remain strong well into 2020.
“There continues to be an excess of capital available in the U.S. VC market," says Conor Moore, national private markets group leader for KPMG in the U.S. "In fact, the strength of the U.S. market is likely driving a lot of the VC investment in other regions, including Europe and Latin America, where investors can get far better prices than they might get here.”
Fintech continued to be a hot area of investment this quarter as traditional VC investors and corporations realize the need for traditional financial services companies to undertake digital transformations. Unicorns also remained strong, with 19 companies reaching unicorn status in Q3 2019, following 20 in Q2 2019. The broad scope and breadth of cybersecurity has VC investors focused on this space. Artificial intelligence, also an area of focus for investors, is being used to help companies establish behavioral patterns, track and identify anomalies, and respond to threats in real time.
If you would like to speak with Moore to get more of his insights on this quarter’s results, please contact Pete Settles @pgsettles or firstname.lastname@example.org.