www.pwcmoneytree.com PricewaterhouseCoopers National Venture Capital Association MoneyTree Report Q2 26 Data provided by Thomson Reuters Data provided by Thomson Reuters Technology Institute July 26 The Q2 26 MoneyTree results are in! This special report provides summary results for Q2 26, Q 26 and Q2 25. More detailed results can be found on the MoneyTree Report website at www.pwcmoneytree.com
Total equity investments into venture-backed companies Venture capitalists invested $5.3 billion in 96 deals in the second quarter of 26, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Total venture dollars deployed to startup companies for the quarter increased 2 percent and total deal count was down 5 percent, compared with the first quarter when $2.7 billion was invested in, deals. Compared with Q2 25, dollars and deals are down 2 and 22 percent, respectively. This is the tenth consecutive quarter of more than $ billion in venture capital invested in a single quarter. The venture capital ecosystem has proven to be both resilient and nimble. We continue to see things we have never seen before, including megadeals, investments of $ million or more, encompassing an unprecedented thirty-nine percent of deal value for the second quarter and the largest venture capital deal of all time. This reinforces that though there are some consistent trends that have emerged in recent years, there s not a single path to its health. Tom Ciccolella Venture Capital and Private Equity Assurance Partner ($ in millions) 2 3 4 5 6 All results rounded 5, 7,49 6,76 5,7 5,29 2, 4,57 3,67 2,27 2,69 9,,8,59 6, 6,329 7,556 6,754 7,53 6,56 7,37 8,8 8,7 3, 94,6 986,95 956,55,7,87,6,24,84,38,87,23,82,35, 96 Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3 Q3'3 Q4'3 Q'4 Q2'4 Q3'4 Q4'4 Q'5 Q2'5 Q3'5 Q4'5 Q'6 Q2'6 Amount Invested 2 PwC
Investments by industry Q2 26, Q 26, and Q2 25 The Software industry continued to receive the highest level of funding of all industries, receiving $8.7 billion across 379 deals for the quarter, a 7 percent increase in dollars despite a 4 percent decrease in deals versus the first quarter of 26. Six of the megadeals (investments of $ million or more) were in the Software industry. The Software industry has held the top spot for dollars invested among all MoneyTree industries for 27 straight quarters. The Biotechnology industry received the second largest amount of venture capital for the quarter, with $.7 billion invested into deals, representing a 4 percent decrease in dollars and a percent decrease in deals, compared with the previous quarter. Investments in the Life Sciences sector (Biotechnology and Medical Devices combined) during the second quarter accounted for $2.2 billion going into 6 deals, decreasing percent in dollars 2 percent in deals. Investments in Life Sciences companies accounted for 5 percent of all venture capital deployed to the startup ecosystem in the second quarter. deployed across 8 deals. Media & Entertainment companies received the fourth largest amount of venture capital for the quarter with $69 million deployed across 95 deals. Computer and Peripherals companies saw the largest percentage increase in dollars versus the first quarter, with an increase of 72 percent. Ten of the 7 MoneyTree industries remained flat or saw increases in dollars invested in the second quarter, including Healthcare Services (65 percent increase) and Semiconductors (42 percent increase). Venture capitalists invested $2.6 billion into 25 Internet-Specific companies during the second quarter of 26, increasing 9 percent in dollars and 2 percent in deal count, compared with the first quarter of 26. Internet-Specific is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company s primary industry category IT Services companies received the third largest amount of venture capital for the quarter with $946 million MoneyTree Report 3
Software 379 396 55 5,46 7,479 8,742 Biotechnology 24 27,686,955 2,2 IT Services 8 7 99 946 764 765 Media and Entertainment 95 7 26 69 93,589 Financial Services 25 26 27 6 85 632 Consumer Products and Services 56 54 69 575 2 2,592 Medical Devices and Equipment 6 58 83 539 52 842 Industrial/Energy 55 5 7 58 62 486 Q2 26 Healthcare Services Semiconductors 2 6 5 6 8 28 32 46 65 6 24 Q 26 Q2 25 Electronics/Instrumentation 3 4 22 35 6 3 Computers and Peripherals 5 6 22 882 Retailing/Distribution 8 5 2 93 76 Networking and Equipment 5 5 6 89 85 39 Business Products and Services 6 2 82 2 86 Telecommunications 8 79 2 45 Other 2 9 38 Grand Total 96,,23 2,69 5,29 7,49 Definitions of the Industry categories can be found on the MoneyTree website at www.pwcmoneytree.com 4 PwC
Investments by stage of development Q2 26, Q 26, and Q2 25 Dollars invested in Seed stage companies declined 5 percent during the second quarter, totaling $535 million in 45 deals and representing only 3 percent of all venture investment dollars for the quarter and 5 percent of all deals. Early stage investment declined 4 percent in dollars and increased 3 percent in deals with $4. billion going into 446 deals. Seed/Early stage deals accounted for 5 percent of total deal volume in the second quarter, compared with 49 percent in the prior quarter. The average Seed stage deal in the second quarter was $.9 million, up from $8.4 million in the first quarter. The average Early stage deal in the second quarter was $8.9 million, down from $.7 million in the prior quarter. Expansion stage investment was up 2 percent in dollars and deal count was flat for the second quarter, at $8.5 billion and 292, respectively, from the previous quarter. Expansion stage deals accounted for 56 percent of all venture dollars in the second quarter and 3 percent of deals. The average Expansion stage deal was $29. million, up by more than double from $3.7 million in the first quarter on the back of a $3.5 billion deal Expansion stage deal. Investments in Later stage companies decreased 35 percent to $2.3 billion going into 78 deals in the second quarter. Later stage deals accounted for 5 percent of total deal volume for the quarter and decreased percent in deals. The average Later stage deal in the second quarter was $2.8 million, down from $6. million in the prior quarter. -, 2, 3, 4, 5, 6, 7, 8, 9, Seed stage 45 67 48 9 535 562 Early stage 446 43 627 3,963 4,6 5,835 Q2 26 Q 26 Expansion stage 292 293 326 4, 7,297 8,57 Q2 25 Later stage 78 22 23 2,287 3,57 4,78 Grand Total 96,,23 2,69 5,29 7,49 Definitions of the Stage of Development categories can be found on the MoneyTree website at www.pwcmoneytree.com MoneyTree Report 5
Investments by sequence of financing Q2 26, Q 26, and Q2 25 First-time financing (companies receiving venture capital for the first time) dollars decreased 8 percent to $.7 billion in the second quarter as the number of deals declined by 4 percent to 267. First-time financings accounted for 3 percent of all dollars and 29 percent of all deals in the second quarter. Of the companies receiving venture capital funding for the first time in the second quarter, Software companies captured the largest share, accounting for 38 percent of the dollars and 4 percent of the deals with $638 million going into deals. First-time funding in the Life Sciences sector during the second quarter was down 27 percent in dollars and was flat in deals, dropping to $372 million going into 34 deals. The average first-time deal in the second quarter was $6.3 million, up from $5.9 million in the prior quarter. First time 267 3 394,677,824 2,35 Q2 26 Q 26 Q2 25 Follow-on 694 7,865 3,64 837 5,58 96 5,29, 2,69 Grand Total,23 7,49 Definitions of the Financing Sequence categories can be found on the MoneyTree website at www.pwcmoneytree.com 6 PwC
Investments by region Q2 26, Q 26, and Q2 25 With an increase of 65 percent in dollars and 8 percent in deals, Silicon Valley received the highest level of funding for all regions in the second quarter of 26, with $8.2 billion going into 3 deals. LA/Orange County received the second highest level of funding with $2. billion going into 7 deals, rising 26 percent in dollars from last quarter and declining 5 percent in number of deals. New York Metro investments came in third, with a decrease of percent in terms of dollars and 9 percent in deals with $.4 billion going into 24 deals. Seven of the 8 MoneyTree regions experienced increases in dollars invested in the third quarter. Silicon Valley 3 287 39 4,943 8,58 9,2 LA/Orange County 7 74 87 595,383 2,44 NY Metro 24 36 47,4,733 2,36 New England Midwest 24 97 39 79 8 9 494 5 379,28,6,59 Q2 26 Q 26 Q2 25 Southeast 55 55 79 368 574,93 San Diego 23 23 35 362 34 Northwest 38 32 53 267 243 52 Texas 39 48 4 256 597 22 DC/Metroplex 36 39 49 29 352 245 SouthWest 29 3 72 293 397 North Central 8 6 2 7 77 Philadelphia Metro 23 34 38 43 74 7 Colorado 5 22 78 45 3 South Central 5 6 2 25 53 Sacramento/N.Cal 4 2 2 7 Upstate NY 4 9 7 2 47 26 AK/HI/PR Unknown Grand Total 96,,23 4 3, 6, 9, 2, 5, 8, 2,69 5,29 7,49 Definitions of the Region categories can be found on the MoneyTree website at www.pwcmoneytree.com MoneyTree Report 7
Most active venture investors Q2 26 New Enterprise Associates, Inc. had the most deals in the second quarter of 26, with a total of 24 deals. Innovation Works, Inc. came in second with 2 deals and Kleiner Perkins Caufield & Byers LLC followed with 8 deals. Most active venture investors are those investors who participated in 9 or more deals in the second quarter of 26. Firm City New Enterprise Associates, Inc. CA, Menlo Park 24 Innovation Works, Inc. PA, Pittsburgh 2 Kleiner Perkins Caufield & Byers LLC CA, Menlo Park 8 Khosla Ventures LLC CA, Menlo Park 4 Accel Partners & Co., Inc. CA, Palo Alto 3 Canaan Partners CA, Menlo Park 2 Comcast Ventures PA, Philadelphia 2 General Catalyst Partners LLC MA, Cambridge 2 True Ventures CA, Palo Alto 2 Google Ventures CA, Mountain View GE Ventures Inc CA, Menlo Park Greycroft Partners LLC NY, New York Sequoia Capital CA, Menlo Park First Round Capital PA, Philadelphia Andreessen Horowitz LLC CA, Menlo Park Polaris Venture Partners MA, Waltham Foundation Capital LLC CA, Menlo Park 9 Connecticut Innovations, Inc. CT, Rocky Hill 9 Battery Ventures LP MA, Boston 9 Lightspeed Management Company LLC CA, Menlo Park 9 8 PwC
pwcmoneytree.com PwC can help For a deeper discussion on these results, please contact one of our leaders: Thomas Ciccolella Venture Capital and Private Equity Assurance Partner 48 87 5979 thomas.ciccolella@pwc.com David Silverman Emerging Company Services Practice Co-leader 646 47 542 david.silverman@pwc.com Greg Vlahos Life Sciences Partner 48 87 529 greg.n.vlahos@pwc.com Danny Wallace Emerging Company Services Practice Co-leader 48 87 53 danny.wallace@pwc.com Let s talk Please reach out to any of our technology leaders to discuss this or other challenges. We re here to help. Pierre-Alain Sur US Technology Industry Leader 646 47 6973 pierre-alain.sur@pwc.com Kevin Healy US Technology Assurance Leader 48 87 3834 kevin.healy@pwc.com Kayvan Shahabi US Technology Advisory Leader 48 87 5724 kayvan.shahabi@pwc.com Diane Baylor US Technology Tax Leader 48 87 55 diane.baylor@pwc.com About PwC s Technology Institute The Technology Institute is PwC s global research network that studies the business of technology and the technology of business with the purpose of creating thought leadership that offers both fact-based analysis and experience-based perspectives. Technology Institute insights and viewpoints originate from active collaboration between our professionals across the globe and their first-hand experiences working in and with the Technology industry. PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time. Before making any decision or taking any action, you should consult a competent professional advisor. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. pwc.com 26 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.