Venture Monitor Q3 2024 (National Venture Capital Association (NVCA))

Summary

• US venture deal activity reached 3,775 completed deals in Q3, putting total full-year deal value on track for $175.2 billion.p.7
• The inventory of active US VC-backed private companies reached a record high of 57,674.p.8
• Year-to-date deal value for rounds with crossover investor participation is on track to reach near $70 billion, representing a 30.3% increase over 2023.p.21
• Venture exit activity generated $10.4 billion across 243 exit events during Q3.p.27
• Through Q3 2024, US venture capital funds raised $65.1 billion across 380 funds.p.30

Key insights

1. Cash back to limited partners as a share of net asset value has remained in the single digits for eight consecutive quarters.p.3
2. Only 23.1% of dry powder was contributed to dealmaking in the past year, marking one of the lowest proportions since early 2010.p.4
3. The SEC officially opted not to challenge the 5th Circuit decision on the private funds advisor rule, exempting VC and PE fund managers from quarterly statement and side letter disclosure rules.p.5
4. Late-stage and venture-growth startups account for 32.4% of all private VC-backed companies, up from 30.0% three years ago.p.8
5. First-time financing VC deal count and value generated $13.6 billion across 3,004 completed deals year to date.p.9
6. Top-quartile valuations across stages have shown recovery toward pre-pandemic levels, while the divergence between top-quartile and median valuations has widened.p.12
7. Late-stage VC deal value is on track to reach $73.6 billion over about 4,100 deals in 2024.p.21
8. Established fund managers secured $52.9 billion, representing 81.2% of all VC capital raised through Q3 2024.p.30
9. The median and average time to close US VC funds increased to 14.7 months and 17.0 months, respectively.p.30