Summary:

Where did the VC dollars go this quarter? Here’s a breakdown of some of the most interesting trends from a recent report from CB Insights on venture capital in the second quarter.

dollars

This past quarter represented the first drop in VC deal activity in five quarters, and funding levels were down 14 percent over last year, but we still saw a dramatic increase in the number of tech IPOs this quarter alone — so perhaps don’t call it a bubble just yet.

A new report from CB Insights released Monday evening talks about some of the trends and changes we saw in venture capital this past quarter. The full report can be found here, but we pulled out a few of the highlights:

1. IPOs were up

The number of IPOs from venture-backed companies increased significantly this quarter, with 22 of them going public. This is 83 percent higher than in the second quarter of 2012, and 144 percent higher than the first quarter of this year. What drove the increases? 11 of the 12 IPOs came from healthcare companies, and Tableau’s IPO, which we covered in its impact on data visualization, had the strongest offering, closing on the first day with a market cap of $2.9 billion.

VC-backed exits M&A versus IPO

2. What Series A crunch?

Since last fall, investors and the media have been talking about a Series A crunch, where companies find it relatively easy to raise a seed round and get started, but much harder to raise the big dollars. However, data from this quarter seems to  see this trend reversing, or at least the number and size of Series A deals increasing. From the first to second quarters of this year, the number of deals rose from 222 to 246, and the actual value of those deals went from $1.31B to $1.51B.

Number of Series A VC deals over time

3. Healthcare sees strong quarter, clean tech only slightly, social not at all

Healthcare companies drove half of the IPOs, but the sector overall had a strong quarter. Early-stage funding in the sector saw a five quarter high, and the overall $1.81 billion from investors was 24 percent higher than the previous quarter. Meanwhile, clean tech funding has been declining since the second quarter of 2012, but this quarter saw the first slight increase of 14 percent in funding. And no one wanted to put money behind social — the area got only 2 percent of funding toward internet companies.

Internet deals by sector

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