VCs on track to exceed US$81.9b investments

SAN FRANCISCO: Venture capitalists (VCs) are spending cash at levels not seen since the dot-com era, and they’re raising money at a pace to match.

Last quarter, VCs spent US$27.3 billion (RM109.47 billion) in the United States, according to a report set for publication Yesterday by research firm PitchBook and the National Venture Capital Association.

That’s the most in any second quarter since the group began tracking quarterly data more than a decade ago. Combined with a record-setting first quarter, the VC market had its strongest first-half-year performance since 2000.

The US$57.5 billion invested in startups so far this year has already surpassed the full-year total for six of the past 10 years. This year is on track to exceed the US$81.9 billion invested last year, which was itself a record since the dot-com boom.

VCs have no shortage of cash to invest. Venture funds raised US$10.8 billion last quarter. That doesn’t include a stockpile raised by SoftBank Group Corp.

The conglomerate is looking to spend US$100 billion in the technology business.