By Pete Settles
Despite the plummeting number of venture capital backed deals in the U.S. during Q2’, VC investment remained relatively solid at $34.3 billion.
Numerous large deals occurred during the quarter, including a $3 billion raise by autonomous driving company Waymo, an $850 million raise by e-payments facilitator Stripe, and a $700 million raise by IOT and AI-powered business productivity firm Samsara.
The U.S. investment represents more than half of the global VC investment of $62.9 billion for the quarter, according to KPMG Private Enterprise’s Q2’ 20 Venture Pulse report.
Conor Moore, national leader for Private Enterprise in the U.S. and a co-author of the report, says the solid quarter was a surprise to some. While Q2’20 included some deals that would have been initiated prior to the pandemic, he explains, it also included a significant number of deals supporting companies offering ‘go-to’ solutions given the current situation.
Moore believes there will be some companies that come out of COVID-19 much stronger than they were before.
He expects we’ll see a shift in investment dollars to companies that promote remote working solutions, collaboration and edtech.
He also says CFOs are hoping that the cost cutting they have had to do could get them to profitability sooner.
Some of the key highlights from the Q2’ 2020 Venture Pulse report include:
To learn more about what’s ahead for the Venture Capital market in 2020 and beyond, please take a listen to the Q2’ 2020 podcast with Conor Moore. If you would like to set up an interview with Conor to discuss the report in more detail, please contact Pete Settles @pgsettles or firstname.lastname@example.org.