Venture Pulse Q2 2020

Startup investment in Australia hit new highs over the first six months of 2020, reaching US$944.7 million, up from US$627.3 million in H1 2019, according to KPMG’s Venture Pulse report.  Despite the effects of the global pandemic, a record amount of venture capital was invested into Australian startups, with 92 deals recorded so far this year.

The report points to US$439.7 million of venture capital investment in Australian startups over the April to June quarter in 2020, an increase of 38.5% compared to the same period in 2019 (US$317.5 million). 

Globally, venture capital investment also continued to show resilience in the second quarter of 2020, reaching US$62.9 billion across 4,502 deals – almost equaling total investment from the first quarter of the year and only slightly off the pace seen in 2019’s second quarter, which registered US$69.8 billion invested. 

Q2’20 highlights

• Global VC investment stayed relatively even from US$63.8 billion across 5,624 deals in Q1’20 to over US$62.9 billion across 4,502 deals in Q2’20. The US alone accounted for more than half of VC investment globally during Q2’20, with US$34.3 billion of investment across 2,197 deals.
• At a regional level, the Americas led VC investment in Q2’20, with US$35.6 billion raised across 2,354 deals. Asia followed with US$16.9 billion raised across 1,011 deals, while Europe saw US$10.1 billion raised across 1,062 deals.
• The 5 largest deals this quarter occurred in the United States and China: California-based Waymo (US$3 billion), Shenzhen’s MGI Tech (US$1 billion), Hangzhou-based Didi Bike (US$1 billion), San Francisco-based Stripe (US$850 million) and Beijing-based Zuoyebang (US$750 million).
• Global first-time venture financings remained weak – seeing only US$10.2 billion invested across 2,439 deals in the first half of the year – well off last year’s pace of US$28.2 billion overall, across 7,490 financings.
• Global VC fundraising activity was strong at mid-year, with over US$60 billion already raised across 299 funds.