December 1, 2016 Comments Off on How Will VC Funding Decline Impact CRE? Views: 215 California, California News, Top California Stories, West

How Will VC Funding Decline Impact CRE?

The Q3 2016 Venture Capital market ran counter to traditional activity in the sector. A new report from JLL Research reveals that U.S. VC funding fell 13% on a trailing basis. The number of VC-backed tech deals also dipped by 35% year-over-year.

The Bay Area still accounted for half of all VC funding in the third quarter with $1.73 billion in San Francisco’s tech VC sector alone. Investors are still making commitments to expansion and late stage companies. Though JLL reports there were just seven deals greater than $100 million so far this year, compared to 35 in 2015, none eclipsed the $1 billion mark.

JLL predicts that both late and early stage tech companies will be seeking plug and play space, both on a sublease and direct basis going forward. Greater expansion is expected from later stage firms, which are capturing an increasing percentage of VC investment dollars.

Bay Area Historical VC Tech Funding

Bay Area Historical VC Tech Funding

Read more at JLL

Read more at JLL (Infographic)

Connect With JLL’s Jack Nelson

For comments, questions or concerns, please contact Dennis Kaiser

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