Global investment volumes began to decline in the first quarter of 2020. The global investment volume decreased by 17 percent compared to the previous quarter and decreased 8 percent year on year.
According to Crunchbase data, with the Covid-19 outbreak, global investment amounts began to decline in the first quarter of 2020 due to the timing of quarantine decisions and the spread of the outbreak.
The starting point of the epidemic was the slowdown of investments in China, while this process was slowed down in Europe. The U.S. and Canada grew quarter-on-quarter, while the pair’s year-on-year growth declined compared to 2019. Many of the investments in the USA, Canada and Europe took place in the last weeks of March, when the quarantine period started.
Number of investment rounds organized
According to Crunchbase data, 7,500 investment tours were carried out in the first quarter of 2020. This figure fell 5 percent compared to the previous quarter and 4 percent year on year. Let us state that the number of investments per quarter has exceeded 7 thousand since 2018. Considering that 8,500 investment rounds were organized in the second quarter of 2019, the number of 7,500 investment rounds is the lowest in the last 5 quarters.
Global investment volume
According to Crunchbase data, $ 63.8 billion was invested globally in the first quarter of 2020. This metric, which was 17 percent lower than last quarter, fell 8 percent year on year. Compared with the past 2 years, it should be noted that the investment amount is at the lowest level. In the fourth quarter of 2018, which showed an increase, the amount of investment stood out as 83.6 billion.
Dollar volume in global investments
Considering the dollar volume of investments made in the last quarter, we can say that the USA and Canada have been growing while the global contraction has been experienced. These two countries constituted the largest segment of the dollar volume in investments in the last 5 quarters.
Volume of seed investments
According to Crunchbase data, in the first quarter of 2020, approximately 3.3 billion dollars were invested in the seed stage initiatives with a 4,896 deal. It should be noted that within the scope of seed stage investments, pre-seed, seed and sub-investments are included, including angel investments. In this metric, we encounter the lowest number achieved in investment rounds in the seed stage compared to the past two years. It is noteworthy that the investment amount decreased by 27 percent quarter to quarter.
Volume of early stage investments
In the early stage investments included in the report, the incomplete A series and B series investment tours below a certain number are compared. Let us state that an investment of 22.3 billion dollars was made in the first quarter of 2020 with 2 thousand 170 agreements. While the total amount of investment fell 27 percent quarter to quarter, this amount stands out as the lowest figure since the fourth quarter of 2017.
Volume of late stage investments
Among the late stage investments included in the report are Series C + tours as well as a subset of larger unidentified venture tours. Let’s add that in the first quarter of 2020, a $ 36 billion late stage investment was made with a 502 deal. Although there is a quarter to quarter decrease in the amount of investment, there is an increase from year to year.
Purchasing and public offering data
It is possible to talk about a decrease in purchases in the first quarter of 2020. Supported by investment companies, 325 companies were sold for a total of $ 30.4 billion. In the meantime, it should fnoted that most of the companies do not explain the sales figure. For this reason, it is likely that the number in the report is much higher.
Nevertheless, considering the sales of $ 59.4 billion in 253 deals in the fourth quarter of 2019, we can say that there was a serious decline.
In the first quarter of 2020, 23 companies supported by investment companies were offered to the public. It is worth noting that this figure drops more than 50 percent from quarter to quarter and year after year. Let us also say that 13 out of 23 companies offered to the public are operating in the biotechnology or health sector.