American startup companies have pulled in a whopping total of $30.8 billion for the first quarter of 2019, which in itself is a figure that is 22 percentage points higher than the figures of the first quarter of 2018.
When the numbers are looked at more closely, it shows that there has been a slight decrease in the amount of angel investor funding. As startup companies are looking to stay private for a longer period of time, the amount of institutional investor funding into these startups will only increase in the future.
2019 is shaping up to be a big year for startup companies, as companies such as Pinterest and Lyft look to go private, ushering in a new era of tech startups looking to debut their stocks in the market. Lyft has also already managed to raise close to $2.5 billion in its IPO offering, and Uber will soon follow suit when it offloads its shares in April.
Other such startups that are looking to go private this year include the likes of Slack. Uber’s IPO will be the biggest one in America for the year 2019, which would soon see the company being valued at more than $100 billion.
American startups that have focused on mobility as their core business strategy have seen billions in funding and were quickly able to leverage the hype around them to climb to unicorn status.
SoftBank has also been a prominent investor in US tech companies, and its Vision Fund was responsible for raising millions of dollars for various American startup companies that it has stakes in.
2019 will prove to be a great year for the startups as more and more companies start going public by the end of the year. If IPO’s of companies such as Uber and Lyft goes well, it will reassure other startup companies who are still yet to make a profit to make their IPO debuts with ease.
Industry giants such as Amazon and Google are also consolidating their positions and increase their efficiency in order to stave off competition and remain as the dominant players in the industry.
The number of mega round investments into startup companies have also fallen from last year to 57 deals in Q1 of 2019. Financing deals into companies that range above $100 million have also seen a slight decrease in this year’s Q1 figures. Even if the number of mega rounds has decreased, it still amounted to $16.4 billion, which is the second biggest quarter for mega rounds in the history of startup companies in America.
The bottom line for the Q1 figures of 2019 is that US startups have seen some monstrous funding rounds at the start of this year which took up 29 percent of the total figure of $30.8 billion. Investors are also looking to go downstream with their investment strategies.