As we entered 2017 the outlook in Silicon Valley was one of cautious optimism, although the all-time stock market highs that we've seen over the past couple of weeks may have pushed the needle even further in a positive direction. Even before the post-election stock market surge, most sources were looking for a reopening of the IPO market in 2017 and a healthy year for venture capital activity as well.
It's always interesting to look at the numbers as we turn the page on the previous year. 2016 turned out to be a relatively good year for the U.S. venture capital industry even though fewer IPOs were completed in any year since 2009 and M&A activity was also down from previous years.
U.S. fundraising increased to $42 billion in 2016, up from $35.2 billion in 2015. According to Pitchbook, 2016 was an especially good year for investors with 87% of funds closed during the year hitting their target, which was the highest percentage in a decade. And we saw a healthy uptick in the size of deals, especially at the early stage.
Internationally, there was also plenty of good news for the VC industry as summarized in an informative report on Q4 from KPMG . Europe experienced a seven year high in fundraising activity with $10.5 billion raised. Asia held steady at around $39 billion.
So moving into 2017 most indicators are pointing up. This promising environment should offer many business and investment opportunities for entrepreneurs, investors, and companies in Silicon Valley and tech centers around the U.S. Here at Womble Carlyle my colleagues and I are looking forward to helping our clients find the funding, investing and deal opportunities that meet their needs.
Hoping you have a productive and successful 2017. Back at you in February.
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