The venture capital-backed deal market set a record in the second quarter, with 2,062 announced deals worth a combined $47 billion, alternatives data provider Preqin reported this week.
The report said the figures were likely to rise by about 5% as more information becomes available, but the second quarter has surpassed the previous record of $43 billion in venture capital-backed deals set in the third quarter of 2015.
Record levels of dealmaking in Asia drove activity in the April-to-June period: 550 deals worth a total of $22 billion. The $5.5 billion financing of Didi Chuxing, a Chinese ride-sharing company, in April was the largest venture capital-backed deal ever recorded, according to the report.
The North American market recorded 936 deals worth $19 billion in the second quarter.
Felice Egidio, Preqin’s head of venture capital products, said the record-setting second quarter was particularly notable following the slowdown in the second half of 2016, and reflected the changing nature of the global venture capital landscape.
“Asia accounted for the largest share of deal value for the fourth time in the last six quarters, and the largest venture capital deal ever recorded was in China,” Egidio said in a statement.
“While the number of financings does not yet approach North America, the region has now come into its own as an epicenter of the industry.”
In April, Preqin reported a pickup in global venture capital-backed deal activity in the first quarter.
Deals and Exits
Angel stage investments accounted for 28% of total deal flow in the second quarter, while series A deals represented an equal proportion.