Most Top Venture Firms' Investment Values Dropped In 2019

Tom Burroughes

19 March 2020

Six of the top-10 global venture capital investors - such as Sequoia, Y Combinator and Kleiner Perkins Caufield & Buyers - made more investments last year, but seven of them suffered a year-on-year drop in value last year, figures show. Data suggests that there has been some deceleration in the VC market even before the big impact of this year’s coronavirus.

The top-10 global VC investors (by number of investments) took part in more than 1,200 funding rounds in 2019 compared with 1,110 funding rounds in 2018. However, the proportionate investment value of these VC firms fell to $10.5 billion last year from $13.4 billion in 2018, according to , a data and analytics company.

Of the top-10 VC investors, six (Sequoia Capital, Y Combinator, 500 Startups, Accel, Kleiner Perkins Caufield & Byers and High-Tech Gründerfonds) increased their investment volume in 2019.

“Despite an upsurge in the investment volume, shrinkage in the investment value indicates a cautious approach of VC investors towards making big investments,” Aurojyoti Bose, financial deals analyst at GlobalData, said.

Figures in the global wealth management industry last year continued to sing the praises of VC, even while recognizing an accumulation of dry powder and stretched valuations. The asset class is seen as offering an illiqudity premium that is attractive in a world of ultra-low interest rates. (That situation has arguably become even more severe after emergency central bank rate cuts this year because of the coronavirus pandemic.)

Strikingly, Sequoia Capital, which registered the highest investment volume and value in 2019, also witnessed a decline in its proportionate investment value by 40 per cent compared with the previous year.

The other top VC firms that witnessed decline in the proportionate investment value in 2019 included 500 Startups, New Enterprise Associates, Andreessen Horowitz, Kleiner Perkins Caufield & Byers, IDG Capital and High-Tech Gründerfonds. Of these, New Enterprise Associates, Andreessen Horowitz and IDG Capital also witnessed decline in the number of investments.

Y Combinator registered the highest growth in the number of investments as well as proportionate investment value in 2019 compared with 2018.