Global Venture Capital Hits Record Concentration in Supergiant Deals
The global venture capital market sees unprecedented concentration in 2018 as supergiant rounds of $100 million or more account for over half of all invested capital.
The global venture capital market experiences record-breaking concentration in 2018 as massive funding rounds dominate the investment landscape. Projected dollar volume jumps 55 percent from the previous year to surpass $300 billion, easily exceeding the highs of the dot-com era. This historic surge highlights a dramatic shift in how capital flows into the startup ecosystem.
Supergiant rounds worth $100 million or more drive this extraordinary growth by capturing the majority of worldwide funding. For the full year, these mega-deals account for over 56 percent of all reported global VC dollar volume, marking the most concentrated year on record. The fourth quarter alone reaches a new peak with 61 percent of capital flowing into these enormous rounds.
This trend illustrates that a rising tide does not lift all boats, as the bulk of venture capital funnels into a handful of elite private companies. The numbers reflect the impact of historically large deals like the $14 billion Series C raised by Ant Financial. Ultimately, the data shows that big money heavily weighs on the broader market and dictates the overall health of the global VC industry.