U.S. companies raised $14.8 billion during the first quarter of the year, down from $18.2 billion a year ago.
Unicorns may soon become extinct. If you consider a unicorn to be a tech startup valued at more than $1 billion, that is.
A report from research firms CB Insights and KPMG released Wednesday shows that only five new unicorns were created during the first quarter of the year, less than half last year’s quarterly number.
U.S. companies raised $14.8 billion in 1,035 deals from venture-capital firms in the first quarter of the year, a big drop from the $18.2 billion raised in the same quarter a year ago. This marks the third quarter in a row that investments have continued to drop.
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The news is worse for late-stage funding rounds, generally raised by larger companies that have not gone public. The size of the average late-stage-deal in the first quarter was $21.5 million, down from $30 million in the fourth quarter of 2015.
A bright spot may be that funding levels did increase from the last quarter of 2015, when companies raised $14 billion.
Funding numbers for Seattle and the state are expected to be released in the next week.