The sudden slowdown in the U.S. market for initial public offerings is hitting the venture-capital business, which saw fundraising slow in the third quarter from recent record levels, new data from Dow Jones VentureSource show.
Venture-backed start-ups raked in $27.53 billion of new capital in 1,295 rounds in the quarter, down 17% in dollars and 14% in rounds, according to the report, which was released Thursday. The total raised was the lowest in nearly two years, but still the ninth highest since 1992. The number of deals was the smallest since the first quarter of 2014. The single largest deal was actually from a corporate investor— Microsoft’s (ticker: MSFT) $1 billion investment in OpenAI.
