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Software industry attracts highest level of venture capital funding in Q3

Software industry attracts highest level of venture capital funding in Q3

Software industry attracts highest level of venture capital funding in Q3

Out of the US$12.5bn invested in 1,046 funding deals during the third quarter, the software industry attracted the highest amount (26pc), with US$3.3bn invested during the quarter.

According to market intelligence firm Digimind, based on data provided by WhoGotFunded.com, the industrial and energy sectors received the second-highest investment amount in Q3, with US$1.9bn going into 122 deals, with an average deal amount of US$16m.

Meanwhile, companies in the healthcare sector attracted US$398m which went into 54 deals, accounting for 3pc of all VC dollars invested for the quarter.

Companies in the consumer products and services sector raised US$1.2bn which went into 71 deals, a clear sign of investor confidence in the sector despite a gloomy global economy.

Monthly investment breakdown

Funds raised in July amounted to US$3.8bn, which went into 282 deals. August saw a slightly greater number of investment deals (298) but with a smaller combined total of US$3.3bn. Following the summer months of July and August, investors ramped up their funding activity in September to close 466 deals amounting to US$5.5bn for the entire month.

The majority of funding deals in Q3 (almost 70pc) were investments of less than US$10m. A quarter of all investment deals ranged from US$10m-US$50m. While just 4pc of VC deals ranged from US$50m-US$100m.

Most funding activity in the third quarter emanated from the US, with 70pc of all VC funds being funnelled into US companies. Some 740 US companies received a combined total of US$8.8bn. Deals involving UK companies amounted to US$767m, making it the second most active global investment hotspot.

Canada comes in at third place in terms of number and value of funding transactions during Q3. Canadian companies raised US$498m for the quarter, which went into 53 deals.

In China, companies there raised a combined total of US$338m. 

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