December 1, 2016
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.
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