FUNDED

It’s a good time to be a venture capitalist

Venture capitalists raised a record amount of money in the second quarter of 2016, according to data from PitchBook. Worldwide, VCs brought in $18.7 billion across 101 funds, up 15% from what they secured in the same period last year. It’s the latest sign that funds continue to flow freely to investors, who also set a fundraising record in the first quarter of 2016, with $16.3 billion in capital.

The second quarter included several deals worth $1 billion or more. Andreessen Horowitz, a prominent VC firm in Silicon Valley, closed a $1.5 billion fund in June to invest “under the broad thesis of ‘software is eating the world,’ ” the firm said on its blog. Kleiner Perkins Caufield & Byers, another big-name Silicon Valley firm, closed a pair of funds at the end of the month that totaled $1.4 billion.

Meanwhile, financing to VC-backed startups picked up in the second quarter. Venture capitalists awarded close to $42 billion to companies over the last three months, according to PitchBook, a 31% jump from the $32 billion they handed out in the first quarter.

A handful of companies took in a disproportionate amount of the funding in the latest quarter. Uber alone was responsible for $5.6 billion of the global total, and its Chinese rival Didi Chuxing another $7.3 billion.

Even tech IPOs heated up in the second quarter, with seven tech/internet companies going public on US exchanges, according to data from Dealogic. That was after zero debuted in the first quarter—the worst for tech IPOs since the Great Recession.

home our picks popular latest obsessions search