Welcome to the Q2’17 edition of the KPMG Enterprise Venture Pulse You know KPMG, you might not Report. In this quarter’s report, we highlight the key trends, know KPMG Enterprise. opportunities and challenges facing the venture capital (VC) market KPMG Enterprise advisers in globally and in key regions around the world. member firms around the world are dedicated to working with Despite an ongoing decline in the number of VC deals globally, there businesses like yours. Whether was a major uptick in VC investment during Q2’17. A significant you’re an entrepreneur looking to number of mega-deals in all regions helped drive this funding get started, an innovative, fast increase, including China-based Didi Chuxing’s record-shattering growing company, or an established $5.5 billion funding round. Given the return of global mega-deals, it company looking to an exit, KPMG comes as no surprise that this quarter saw the birth of 16 new unicorn Enterprise advisers understand what companies — the highest level experienced since Q2’15. is important to you and can help you navigate your challenges — no US Initial Public Offering (IPO) activity continued to make a matter the size or stage of your turnaround during the quarter, with a number of technology business. You gain access to companies achieving successful exits. In tandem with solid merger KPMG’s global resources through a and acquisition (M&A) activity, this renewal is a positive sign for the single point of contact — a trusted market. adviser to your company. It’s a local touch with a global reach. Q2 saw biotech and autotech attracting continued interest from investors, these are expected to be hot areas of VC investment in Q3, in addition to artificial intelligence (AI), analytics, and virtual reality technologies. Blockchain is also expected to remain on the radar of investors, with a growing focus on the technology’s applicability Jonathan Lavender across sectors and verticals. Global Chairman, KPMG Enterprise, In this edition of the Venture Pulse Report, we look at these and other KPMG International global and regional trends, including: Brian Hughes —The pickup in mega-deals activity across the globe Co-Leader, KPMG Enterprise —The ongoing decline in number of deals, specifically at the seed Innovative Startups and early-stage deal levels Network, KPMG —The drivers behind advancements in autotech International, and Partner, —The growing focus on business to business (B2B) opportunities. KPMG in the US We hope you find this edition of the Venture Pulse Report insightful. If Arik Speier you would like to discuss any of the results in more detail, please Co-Leader, contact a KPMG adviser in your area. KPMG Enterprise Innovative Startups Network, KPMG International, and Partner, KPMG in Israel © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. #Q2VC