Fundraising amount of US startups hits record in third quarter

October 11, 2017 16:47
Investment sentiment will depend on whether Uber can successfully list in 2019, according to the Global Q3 Venture Capital Report. Photo: Bloomberg

Startups in the United States recorded 225 deals of late-stage funding in the third quarter, the busiest period during the past year, the Hong Kong Economic Journal reports.

The dollar amount came to US$21.75 billion, a record high in five quarters, according to CrunchBase, a database of tech companies and investors, in its Global Q3 Venture Capital Report.

In the series C and late-stage funding, US startups raised US$11.6 billion.

Some of the biggest deals came from sectors such as transportation, medical equipment and online services.

Gogoro, which develops and sells electric automobiles, obtained series C funding of as much as US$300 million. Others included Surgical robotics company Auris and shared ride platform Via.

Not many initial public offerings were reported by startups in the third quarter. Digital media manufacturer Roku topped the list by raising US$220 million.

Among IPOs with venture capital investment background, two-thirds of the companies were engaged in biological sciences.

Deciphera Pharmaceuticals, a developer of cancer drugs, raised US$128 million through an IPO.

There was no large acquisition deal in the third quarter. The last major transaction came in January when Cisco Systems acquired application performance management company AppDynamics.

The report said investment sentiment will depend on whether Uber can successfully list in 2019.

This article appeared in the Hong Kong Economic Journal on Oct. 10 

Translation by Jonathan Chong

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