Report: US VC Funding Declines in Q3, Fintech Deals Decline Too

US venture capital funding fell in the third quarter of 2019 as both funding levels and the number of deals both declined. As funding dips, the Unicorn herd has hit a new record as there are currently 180 private companies valued at over $1 billion. This is according to CB Insights most recent “MoneyTree” report.

According to the report, VC backed firms raised $26 billion in Q3 a 15% decline from Q2. Deals dropped by 16% to 1,304.

In comparison to Q3 of 2018, 1,528 companies were funded raising a total of $29.5 billion – so the declines are sequential as well as year over year.

On a more positive note, US VC funding year to date has a shot at topping 2018 – a record year when $117.2 billion was raised. Currently, for 2019, the total stands at $82.6 billion.

During the quarter, funding declined at all states from Seed to Series E+. The median Seed round stood at $2 million.

When looking specifically at Fintech funding, during Q3 147 Fintechs raised capital for a total of $3.8 billion. During Q2, Fintechs raised $5.2 billion in 164 deals.  In Q3 of 2018, more deals received funding for a bit less money (182 deals for $3.1 billion).

The top Fintech deals were all for later-stage rounds ($200 million +). The top five Fintech deals were the following:

  • Root Insurance – $350 million
  • Robinhood – $323 million
  • Stripe – $250 million
  • C2FO – $200 million
  • Gusto – $200 million
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