IMore venture capital flowed worldwide in the first quarter of 2018 than in any other quarter of 2017. German VC investments reached their second-highest level since 2012.
Venture capital firms worldwide invested $49.3 billion in the first quarter of 2018, exceeding all previous year's quarters. VC investments even doubled compared to the first quarter of 2017. The number of global deals remained at the same level as the same period last year (2,662), at 2,661 in the first three months of 2018. This is the result of the latest edition of a regular study by the consulting firm KPMG.
“Investments in blockchain technologies are becoming increasingly important in Germany”
German startups secured $1.5 billion in venture capital in the first quarter. After the third quarter of 2014, this is the highest figure reported by the analysis since 2012. Stefan Kimmel, Partner at KPMG Germany, says:
"Although Germany has already established itself at a high level of investment, a slight increase in invested venture capital can still be observed. This is encouraging. The focus here is also shifting towards later-stage financing. Furthermore, the market here is characterized by increasing corporate venture capital activity. I expect this trend to continue for the time being."
A $561 million investment in Berlin-based used car dealer Auto1 played a major role in the strong results in Germany. A total of five German investment rounds landed in the European top ten. KPMG partner Tim Dümichen says:
"Investments in blockchain technologies, in particular, are becoming increasingly important in Germany. The use cases now extend far beyond payments and cryptocurrencies. More and more companies are considering how they can cleverly integrate blockchain technology into the DNA of their business model and the entire value chain."
Capital for mature startups
The US remains the largest VC market globally. US companies received $29.4 billion in 1,782 deals. About half of that, $14.6 billion, flowed to Asia. European startups secured $5.2 billion. Venture capitalists invested $15.4 billion, or more than half of the total, in Series D financing rounds, i.e., in very mature startups. Early-stage projects continue to struggle to secure the necessary financing, according to the study authors.
