Global venture capital financing hits $US10.4 billion in second quarter

Global venture capital financing hit $US10.4 billion in the second quarter of 2013, up 14% on the previous quarter and returning to the level of financing seen in the fourth quarter of 2012, according to private equity research firm Preqin.

The firm says in a statement North America dominated venture capital deal flow in the second quarter, with the value of deals reaching US$7.7 billion, or 74% of the aggregate value of deals.

The region saw 806 financings during the period, 61% of the 1315 venture capital deals.

Preqin says the number of European venture capital deals in the second quarter rose by 5% from the previous quarter and was up by 26% in terms of aggregate value.

China saw a slump in venture capital activity, with the number of deals down 46% compared with the previous quarter and down by 59% in terms of aggregate value.

It says venture financing of software and related companies rose in the second quarter, with the number of deals in the sector at their highest since 2008. However, the value of deals in the sector represented 15% of the total value of financings, down from 21% in the first quarter.

Healthcare companies attracted the most interest during the quarter, with 28% of funding going to the sector, up from 19% in the previous quarter, while the number of deals represented 16% of the total.

The internet sector took 23% of funding and made up 25% of the number of deals.

Preqin says early stage deals dominated in terms of the number of deals, with angel/seed financing making up 20% of all deals globally and Series A accounting for 17%.