In the fourth quarter of 2018, the global venture capital market is experiencing an unprecedented concentration in supergenerating dollar volume


For the global CR industry, 2018 has been a supergenerating year. Crunchbase predicts that 2018 transactions and dollar volume exceeded even the high-water mark left by the dot-com flood and the drought that followed.

As reported in VC's Crunchbase News global report for the fourth quarter and the remainder of 2018, the volume of projected transactions has increased by 32% and projected dollar volume has increased by 55% since 2017. For 2018, Crunchbase projects were invested in equity. goes through all the stages of the life cycle of a venture-backed company. (This figure includes an estimate of transactions completed in 2018, but will not be published or added to Crunchbase before.) Crunchbase project information is available at the end of this report.)

Is the market primarily fueled by the billions of dollars raised by the largest private technology companies, or is a rising tide in this extensive aquatic metaphor for all ships? In other words, most of the capital has only some of the biggest turning points? This is what the numbers show.

In the global venture capital pool, equity is rising sharply to reach a total of more than $ 100 million. In the graph below, you can see what percentage of the reported global volume of venture capital dollars was generated in "supergiant" towers compared to smaller deals.

Over the course of the year, more than 56% of the world dollar volume can be attributed to supergiant rounds. With 61% of reported capital coming from super-giants in the last quarter, the fourth quarter of 2018 has the highest concentration ever recorded in super-giant dollar volume.

The bulk of money is weighing on the market

Following this same theme, the 2018 calendar year is the most concentrated year ever recorded. In the graph below, we show how much capital has been raised during non-supergiant corporate towers (<$ 100 million) over the last decade. (This is essentially the bottom half of the first chart, with aggregated data over a longer period.)

For the first time in at least 10 years (and probably never) supergiants, $ 100 million and more CR series accounted for the majority of reported funds raised. In summary, Q4 2018 recorded the highest share ever of dollar volume of venture capital supergiant, and the year 2018 was the most concentrated ever recorded.

On one side, the results are not surprising, considering that the biggest round of private equity of all time (a ridiculously high series of $ 14 billion Series C raised by Ant Financial) and several rivals for this first rank were closed last year. This grand tour was a sensation. It was the year of multi-billion dollar global growth funds, SoftBank CEOs and scooters worthy of huge sums, at least on paper. But was it good also for the smaller players?

Seed and seed transactions and dollar volume were both up in 2018, but so is the end of the bull market cycle. The question is, when the bottom falls, between the supergiant rounds and of more normal size, which has the most fall to fall?