Venture Investment Statistics 2005

Buddy Will Price has the Venture Investment Statistics for 2005, from VentureSource, a division of Dow Jones and Ernst & Young.

  • Commitments to VC Funds, $22.2 bn. Up 18.7% from 2004
  • VC Financings, $22.1bn. Up 2.8% from 2004
  • IT Financings, $12 bn. Down 4% form 2004
  • Software Financings, $5.11bn, Down 6% from 2004
  • Number of Active Firms, 1,417
    • Down 49% from 2000, 61% if you define active as > 4 deals per year.
  • Number of exits, 397.
    • IPOs: 41, down 38% from 2004, with $2.24bn raised via IPO
    • M&A: 356, down 12% from 2004, with $27bn in total exit value
  • Number of private companies funded since 2000 net of 2005 exits: 5,406 with $132bn invested in them
    • Average of $24.4m invested in companies
    • At current exit rate, will take 13.6 years to get through backlog (amount available to VC firms for investments / total investments per year)
  • Median M&A exit $47.5m
  • Median Pre-moneys (across sectors)
    • Seed $2m
    • A $5.4m
    • B $14m

As already mentioned, US VC firms have committed $6.5B in Q1 2006, an increase of 30% over Q1 2005.