A slowdown in venture funding that began early last year is now glaringly apparent, according to the quarterly MoneyTree Report to be released Wednesday by PricewaterhouseCoopers LLP and CB Insights. It wasn’t until the third quarter that signs of slowing venture investment became obvious, because the second quarter was boosted by billion-dollar-plus financings of Uber Technologies Inc. and Snap Inc. Now it’s impossible to ignore.
Venture capital investment in the United States fell 17 percent, to $11.7 billion, from the third to the fourth quarter of 2016. That’s for 982 deals, down 17 percent to a multi-year low. The fourth straight quarterly drop also marked the first time in a full five years that the deal count has dipped below 1,000. Worldwide funding also fell, to $21 billion, an 89 percent drop from a peak in the third quarter of 2015.