VC 100

Why Larger VC Deals Mean More Pressure for Startups

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Last year's venture capital activity could be summed up in five words: fewer deals but bigger rounds, according to PitchBook, a Seattle-based data provider for the global private equity markets.

The company's recent 2015 Annual U.S. Venture Industry Report finds that 60 percent of venture capital dollars in 2014 fueled deal rounds at or above $25 million, a 45 percent increase from last year.

In this quick video, Adley Bowden, PitchBook's senior director of analysis, explains why valuations spiked in 2014, and why that means more pressure for startups to perform going forward.

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Why Larger VC Deals Mean More Pressure for Startups

Related: VC 100: The Top Investors in Early-Stage Deals of 2014

Edition: December 2016

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