Top Venture Capital Deals of 2015
As we close out 2015, the venture capital market has made some interesting strides. In the first half of this year, the VC market revolved around technology and health-care companies. Investments by venture capitalists like Efraim Landa topped right at $19.19 billion from just April to June. That is representative of a 24% increase over 2014 and is almost a perfect match of the fourth quarter back in 2000. That’s when investors contributed a total of $19.72 billion.
The total investments made during the first half of 2015 was $35.92 billion which tops the $35.71 billion that was spent investing in US based venture backed companies throughout the entire year of 2013. It also surpasses the total of all of 2014 which topped off at $57.02 billion.
Top VC Funded Businesses in 2015
Airbnb Inc. is a home rental service that had one of the largest private funding rounds this year. The company participated in a deal that raised $1.5 billion. The company is valued at $25.5 billion. There were several private equity firms involved in the deal. There have only been three venture backed companies that raised equal funding in a single round. The $25.5 billion valuation ranks Airbnb as third in line a list of VC backed startups that are valued $1 billion or more. They are only behind Xiaomi Corp. a Chinese maker of smartphones and Uber. According to the WSJ Airbnb’s revenue should surpass $900 million by the end of 2015; and projections have it reaching $10 billion by 2020. Their website has over 1.4 million listings including rooms, houses, apartments and exotic locations available for rent. The company brings in revenue through charging 3% of each booking transaction and from a service fee that runs between 6 and 12% from the guests.
Uber Technologies Inc.
Uber is at the top of the VC deals this year too. This San Francisco based startup raised about $17 billion in funding. They provide a new concept in transportation services by allowing individuals to order in town rides using their Smartphone. Their funding has put them at the front of the classification of internet startups and they had a pre-funding valuation of $17 billion this year. That’s up $3.5 billion from last year’s valuation. Their latest valuation is really a record when it comes to tech startups and the company is already worth more than other larger, public companies who provide similar services.
Another new startup that made the top 10 venture capital deals this year is Los Angeles based company Snapchat. Their funding round was the 10th largest deal for US VC backed companies. Since this messaging app company is a mere 3 years old and hasn’t really started making much money, the funding is a rather extraordinary feat. Financing for Snapchat ranked just ahead of one of the largest deals of 2014 – Airbib. If you consider international funding as well then Snapchat ranks about 18th in funding for all time.
Zenefits is valued at $4.5 billion as of early this year. The startup is based out of San Francisco and just celebrated a second anniversary by raising $500 million in capital. There $4.5 billion valuation is up from $500 million not too long ago. At that time the company raised $66.6 million and all together the company has been able to raise around $582 million in three rounds. Zenefits offers a tracking service to businesses that have no more than 1000 employees. The software-as-a-service (SaaS) provides tracking for various functions like payroll, onboarding, benefits and vacation time. How does Zenefits earn its money? They charge broker fees when software users buy insurance or other human resource services through it. Saas works by subscription which means that consumers pay up front for the services. While they pay less for the monthly subscription they will have to make more purchases as time goes on which is a large part of where the company’s revenue is generated from. They are one of the fastest growing SaaS type of business ever in the history of Silicon Valley. The company is on track to grow their revenue to $100 million in just two years.
Posted on December 23, 2015, in Top Venture Capital Deals, VC investments, Venture Capital and tagged Top Venture Capital deals, Venture Capital 2015, Venture Capital and the Silicon Valley. Bookmark the permalink. Leave a comment.