VC funding hits $13.88B in Q2, highest point since 2001

Total venture funding goes gangbusters in the second quarter with companies like Airbnb, Pinterest, Uber, and Lyft raising billions.

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CB Insights

The money is flowing in the venture capital world.

In the second quarter of 2014, an extraordinary $13.88 billion was invested across 974 deals, according to a new report by venture capital database CB Insights. That means VC spending during the quarter was leaps and bounds higher than quarters past and saw the highest spending since 2001.

Where was all of this money going? For the most part, to the tech sector.

The "Internet" category received 41 percent of investments in the second quarter with $5.64 billion. "Mobile and telecommunications" got 19 percent, "non-internet and non-mobile software" had 5 percent, and "computer hardware and services" received 4 percent. The only big non-tech category was "healthcare," which got 20 percent of total investments.

Of those Internet companies that got wads of cash were Airbnb, Pinterest, and Automatiic. Airbnb took the cake getting $500 million in Series D funding. The mobile and telecommunications companies that raised the most money included Uber, Lyft, and Instacart. Uber got an impressive $1.2 billion in Series D funding and Lyft received $250 million.

According to CB Insights, the number of companies raising money at $1 billion valuations is on the rise. Dubbing these companies "unicorns," the firm said that the second quarter of 2014 beat out the entire year of 2013 for $1 billion valuations.

"The number of US tech companies that raised their first financing at a $1B+ valuation in H1 2014 represents a 133 percent increase from the total number of companies that raised at a $1B+ valuation in all of 2013," CB Insights wrote in its report.

The report also breaks down investment activity by cities and states. California saw the highest VC investments with $8.93 billion invested across 442 deals. New York also saw record spending with a 10-quarter high and investors forking over $1 billion to local startups. Washington and Massachusetts also saw an increase in deals and funding levels.

The whole report can be found here.

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CB Insights

 

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