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Drill down on financing trends and data.
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247
reported venture capital financings, totaling $13.5 billion of invested capital
Jump to 68 billion information
8.5%
of deals contained a pay-to-play provision
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100%
of deals had broad-based weighted average anti-dilution protection
64% rounds
$8.8
billion in total invested capital for 126 reported tech company venture financing deals
NonValued Information
65
reported deals for life sciences venture financings
48% handled
23%
increase of life sciences company venture financings structured in tranches
Interactive data
Welcome to Cooley GO Visualize, which allows you to drill down on trends gleaned from deals we’ve worked on with entrepreneurs. The data you see here will be updated in conjunction with our quarterly VC Financing Reports.
We hope you’ll find this and other Cooley GO resources such as the Convertible Note Term Sheet Generator helpful in navigating and accelerating your fundraising efforts.
Q3 2024 Venture Financing Report
Invested Capital and Average Tech Venture Financing Deal Size Increased, While Median Pre-Money Valuations for Series D and Later Exceeded $1 Billion
Cooley handled 247 reported venture capital financings in Q3 2024 , representing $13.5 billion of invested capital, which is the largest amount of invested capital reported since Q2 2022. While invested capital saw a significant increase over Q2 2024, deal count for Q3 2024 was slightly down since last quarter. In Q3 2024, deal volume remained about the same as for Q2 across most stages of financing, aside from Series A deals, which saw a decrease from 107 to 79 deals, and Series B, which saw an increase from 38 to 53 deals from Q2 to Q3. Invested capital increased across most deal stages in Q3 2024, but it decreased slightly for Series A deals from $2 billion in Q2 to $1.6 billion (likely reflective in part of fewer deals). The increase in invested capital from Q2 to Q3 2024 was most significant in Series B rounds, which climbed from $1.3 billion to $3.7 billion, and Series D and later rounds, which increased from $2.3 billion to $6.4 billion.
Median pre-money valuations increased for Series Seed financings and Series C and later rounds, though not for Series A and Series B financings. The most significant increase was in Series D and later rounds, which rose from a median of $794 million in Q2 2024 to a median of $1.2 billion in Q3 2024, representing the first time the median for Series D and later rounds has exceeded $1 billion since Q2 2022. Meanwhile, median pre-money valuations decreased for Series A and B rounds, with Series B deals seeing the largest decrease, declining from a $140 million median in Q2 2024 to a $120 million median in Q3. The percentage of deals with pre-money valuations greater than $100 million (at all stages) increased to 30% of deals in Q3 2024, up from 27% of deals in Q2.
The percentage of down rounds remained the same for Q3 2024 at 23% of deals, which is still relatively high compared to pre-2023 data. The percentage of deals representing up rounds increased slightly to 75% in Q3 2024, compared to 74% in Q2, while the percentage of flat rounds decreased to 1.8% of deals for Q3, compared to 3.3% of deals in Q2.
In Q3 2024, the percentage of deals involving a recapitalization increased marginally to just over 2% of deals, compared to 1.6% of deals for Q2. The percentage of deals with a pay-to-play provision decreased very slightly during the quarter, at 8.5% of deals in Q3 2024 versus 8.7% of deals in Q2. The Q2 2024 percentage of pay-to-play transactions was a high-water mark since the inception of this report in 2014, and Q3 2024 represents only the third time in this report’s history that the percentage of deals with a pay-to-play provision has exceeded 8%.
Despite the increase in deals involving a recapitalization and the continuing relatively high percentage of deals with pay-to-play transactions, other deal terms remained favorable to companies in Q3 2024. The percentage of deals with a one-time liquidation preference and the percentage of deals with nonparticipating preferred stock remained high, representing 96% of deals for both provisions for Q3 2024. For the first time since the inception of this report, 100% of reported deals had broad-based weighted average anti-dilution protection, with no deals having full ratchet anti-dilution protection.
Spotlight on technology
The deal volume for tech company venture financings saw a slight decrease from 144 reported deals in Q2 2024 to 126 reported deals for Q3. Conversely, the amount of invested capital for tech company venture financings increased significantly during the quarter from $3.6 billion in invested capital for Q2 2024 to $8.8 billion in invested capital for Q3, the highest amount seen since Q2 2022. Similarly, the average reported deal size of venture financings for tech companies increased significantly from $25.2 million in Q2 2024 to $70 million in Q3 2024. This is the largest average deal size for tech company venture financings seen since Q1 2022 and represents only the second time in the history of this report that this average has exceeded $60 million.
Spotlight on life sciences
In Q3 2024, the deal count for life sciences company financings decreased to 65 reported deals from 73 deals reported in Q2, while invested capital increased slightly to $2.6 billion from the $2.3 billion reported in Q2. Reported average deal sizes for venture financings of life sciences companies also increased in Q3 2024 to an average deal size of $39.7 million, compared to $31 million in Q2. The percentage of life sciences company venture financings structured in tranches increased to 23% of reported deals in Q3 2024, which is more in line with percentages seen throughout 2022 and the first half of 2023.
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