Have Startup Investors Pulled Back From the Brink? Venture Capital Returns to Pre 2014 Levels in Q4

With 13 business days left in 2015, Q4 is on pace for a dramatic decline in startup funding over recent quarters, with total investment currently standing at $11 Billion.

The last time startup investment growth outpaced the S&P 500 was during 1999 and 2000, and the current trend indicates investors may pull back this time rather than riding out the trend to a new high. This year’s growth was primarily driven by a flurry of large late stage investments that minted many new “unicorn” companies.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

November Pre Series A Deal Data May Show Early Evidence of VC “Slowdown”

Anecdotally, private company investors I’ve spoken to are nervous about market conditions for startup investing. I’ve had conversations with several VCs who told me their fund decided to back off on seed and Series A deals in Q4, instead focusing on follow-on in existing portfolio companies and battening down the hatches on their biggest and most promising bets. There has been a noticeable uptick in Twitter chatter, and posts like Fred Wilson’s “Tightening Your Belt” and Fabrice Grinda’s “Macro perspective: The startup party is far from over!” hint at the content of board room and partner meeting conversations at startups across the country.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Early Q4 Funding Data Indicates 20% Slow Down, Return to Pre-2015 Levels

This post is part of our Startup Funding Benchmarking Series exploring the allocation, concentration, and macro trends in the financing of high growth startups.


It’s amazing what just a few more weeks of data can do. Each morning, I run the pace analysis fo the current quarter and past 4 weeks to understand the overall movement of capital deployment in the U.S. startup market. At the end of Q3 we reported that the pace at that time showed little sign of a slow-down, despite widespread doom-and-gloom bubble talk.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Reflecting on Raising Mattermark’s Series A, One Year Later

This time last year, I was spending a lot of time in Keynote. I spent so much time putting that deck together, and at the end of the day an email conversation with Brad Feld and a handful of key questions were the “pitch” of our Series A fundraise. The deck turned out to be more for me than for investors, forcing me to meticulously organize my mind around what we’re doing, why we’re doing it, and what it will take to get to the next milestones.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Somewhere Over the Brainbow: The Unicorn Window is Closing

People used to worry about the “IPO window” closing before they could get their company significantly far along to exit. Now, with the rise of massive private rounds from late stage private equity and crossover investors, startup founders and their investors have something new to worry about: Did you miss the unicorn window?

Most venture-backed startups run at a loss, but there is a special variant of unicorn companies operating at gross margins that look nothing like traditional software businesses. These companies are in trouble, and will have the hardest time raising.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

The Human Algorithm: Automating Startup Data Collection at Mattermark

Sarah Catanzaro heads up the Mattermark data team, where she leads a team of three analysts partnered with 3 machine learning engineers to collect and clean massive amounts of company data. Last week, she spoke at the RJMetrics Datapoint Live conference to share a bit more about how we achieve scale through automation. You can also view the video of her keynote here.

By focusing on the real questions people ask, and building the data set to answer the most important questions first, we go beyond aggregation to what we believe really makes what we offer special and unique: workflow.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

2015 Deal Volume Down 27%, Capital Deployment Up 41% — Mattermark’s Q3 US Startup Funding Report

Each quarter, the analyst team at Mattermark puts together a summary of the past 3 months of deal activity in the US startup ecosystem to help investors get a sense of the overall market trends. This report takes a step back to examine the bigger picture alongside recent activity, to help you calibrate your gut feel for the markets with objective data. Download the 33-page free report here.


Q3 Trend in Focus: Capital Concentration

The key trend which continues to emerge is the concentration of capital in fewer rounds, as evidenced by a decrease in overall deal count and an increase in total funding dollars deployed.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Q3 2015 Saw $21.9 Billion of U.S. Private Company Funding, Pace Shows No Signs of Slow Down in Q4

This post is part of our Startup Funding Benchmarking Series exploring the allocation, concentration, and macro trends in the financing of high growth startups.


While public markets ended the quarter in a struggle to rally off 52-week lows, private investment has continued to flow with the quarter-end mark of $21.9 Billion dollars deployed to U.S. private companies at the 2nd highest level since the beginning of 2010. Our original pace mark, based off activity in the first 4 weeks of the quarter, suggested funding levels would reach $21.6 Billion and we were pleasantly surprised to see our forecast off by just 1.4% below actual.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Q3 U.S. Startup Funding Pace Holds Steady, Investors Deploying $250M Per Day on Average

This post is part of our Startup Funding Benchmarking Series exploring the allocation, concentration, and macro trends in the financing of high growth startups.


Market volatility continues, and the FOMC decision to wait on raising interest rates appears to have brought short-term relief. While many investors say they are in “wait and see” mode, deal-making that was already underway continues and our forecast for Q3 climbed another $100M over the past 2 weeks to $20.5B (for context our initial estimate as of August 31st was $21.6B).… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

Q3 Startup Funding Pace Moves Upward, Driven by $1.2 Billion Uber Series G

This post is part of our Startup Funding Benchmarking Series exploring the allocation, concentration, and macro trends in the financing of high growth startups.


September had a bit of a sleepy start for fundraising, likely created by a combination of investors in “wait and see” mode due to shaky public markets and a well-timed holiday weekend that made the first week a wash. Private markets came back strong yesterday, and we have adjusted the Q3 total funding pace upward by a full $1 billion dollars from last week’s estimate.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.