Bubble debate aside, 2014 was a remarkable year for the venture capital industry. Fundraising, investing, and valuations all increased significantly across the board, yet the trend of industry consolidation continued. This “flight to quality” has persisted for many years, and in 2014 we saw 4% of the firms that raised funds account for nearly 44% of the total capital raised. As a result, the data continue to support our belief that the venture industry is shrinking. Moreover, in our latest research report on the State of the Venture Capital Industry, we find sound reasons why VCs remain excited about today’s investment opportunities to tap the next generation of truly disruptive and transformative technology companies.
