Market Cooling of 2016

VC rounds and dollars are down approximately 1/3 vs the same time frame as last year (2015).

I utilized CB Insights to pull some data.

I wanted to see what has happened the last few months, post the public market correction that took place in February 2016.

First thing I wanted to look at was all VC rounds in the US between March 15th and May 15th of this year.

The query provided: 523 rounds of equity financing, totaling $7.12B.

Now, I wanted to compare to same time frame of last year.

The query provided: 778 rounds of equity financing, totaling $11.6B.

So, rounds are down 32.8% and funding amount is down 38.6%.

I wanted to drill down and just look at Seed and Series A rounds, again, only in the US, on those same dates, March 15th to May 15th of this year (2016).

The query provided 293 rounds of equity financing, totaling $1.46B.

Again, wanted to compare it to the same time frame of last year.

The query provided 465 rounds of equity financing, totaling $2.09B.

So, Seed/A rounds are down 37% rounds and funding amount is down 30%.

This cooling off period is actually a great thing.  The funding environment was too frothy the last few years and there was a lack of discipline on both the CEO and VC fronts.  Companies are now focusing on getting a handle of their burn and spending their money in a slight more conservative rate.

While things have cooled, the good news for Founders is that there is still A LOT of money available to them.  The majority of VCs have new/newer funds raised.

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