The second quarter risk capital outcomes are focusing.
The exchange will have more notes on Q2 venture capital results this week, but this morning we are digging into our first dataset of what happened in the world of private capital from April to June.
Crunchbase News - a place where I worked, it seems fair to note - made its usual tour of the business of the quarter results, actually getting two answers to the question of what happened in Q2 VC. Apparently, one-company fundraising made the quarter's results much better than they actually were. Once the non-adventurous financing rounds of the company are eliminated, a clearer picture emerges.
The exchange explores startups, markets and money. You can read it every morning on Extra Crunch and now you can receive it in your inbox. Sign up for The Exchange newsletter, which will drop every Saturday starting July 25th.If Reliance Jio's epic - and continuing - ability to attract billions of dollars collides, the private investment market was weak in the second quarter. For Crunchbase News, including the Reliance Jio offerings, "Crunchbase recorded $ 69.5 billion invested in all stages of financing for the second quarter in particular. This is a 17% increase over the quarter and a 2% decrease on an annual basis. "(Crunchbase has moved away from making projections in particular, and now reveals it reported data in its quarterly results).
A gain of about a sixth from the results of the first quarter of 2020 was probably not what you expected, given the almost comical turbulence of the quarter. But, with the Reliance Jio bacchanal fundraiser laid bare, the results are much worse.
Let's talk if it is right to rely more on Jio-free Reliance data and learn more about what data means for startups all over the world. We will also see some other megarounds of the period to see if there are other distorted funding events lurking in the data.
The bad news
Final global Q2 data exclusive of Reliance Jio's Q2 offerings, according to Crunchbase data, shows a drop in investments in the period of -9% compared to the first quarter of 2020 and -23% compared to the quarter of the previous year. While some of this will be due to the delay in reporting - the thing on which the projections were initially built to counter - the drops are still stark.
Global Q2 VC doesn't seem strong from this perspective.
