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Mega Rounds Proliferate But Only For the Few

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April 9, 2015

While dollar amounts of venture capital raised in 2014 increased significantly, based on data from several sources, the overall number of venture financings has not increased, says The Entrepreneurs Report from Wilson Sonsini Goodrich & Rosati. Raising large amounts of money for private company growth may be easier than ever in the US market, but raising startup money may not be. The analysts read the trend as a “healthy sign” because it means that the large amount of money flooding into venture is being funneled into companies “perceived to be of higher quality”. There is apparently a “tight filter” on new companies raising funds, it said. Up rounds constituted 78% of all deals, which is the highest proportion in recent years. Only 17% of deals were down rounds, while 5% were flat rounds. (Image source: WSGR)

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