Q4 2019 Report

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Wheels of Venture Keep Turning Despite Uncertainty

As we enter the final stretch of 2019, the global economic outlook is cloudy.

Multiple uncertainties, including the intensifying trade war and conflicting economic indicators, have put investors and policymakers on edge. Trying to get ahead of a broader slowdown, central banks are cutting interest rates. 

Private markets remain buoyant. After a banner fundraising year in 2018, VC dry powder is close to historic highs and PE fundraising is now having its own record year. A diverse cast of investors, from VCs to large asset managers, is participating in massive late-stage rounds, contributing to net new Unicorn creation.

The United States has dominated exits this year, with total US Unicorn exit value this year now standing at around $215 billion. Unicorns that have gone public have generally performed well, with a couple of high-profile exceptions. This year, public markets appear to reward unit economics more than growth-at-all-costs. Also, disruptive new routes to liquidity have entered the conversation, such as direct listings and secondary transactions.

Despite jitters created by the WeWork saga, fear of a global economic slowdown, and rising political uncertainty, the venture ecosystem remains robust — with ample private capital stockpiled for years to come.

View our Q4 2019 State of the Markets report to learn more about these findings and more.

This material including, without limitation, to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.

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