The second quarter of 2015 saw $19 billion in venture capital investments in U.S.-based companies, a significant jump over the previous quarter.
Venture capital firms and their portfolio companies have more confidence in companies’ ability to deploy larger amounts of capital, said Ted Hollifield, partner in Alston & Bird’s Corporate & Finance Group and head of the firm’s Silicon Valley office.
“In many instances, these financings represent traditional growth capital rounds where the proceeds will be used to support working capital and to build out sales and marketing teams,” Hollifield said. “Implicitly, entrepreneurs are saying they see opportunities to grow their business and VC firms are saying that the projected returns will satisfy their limited partners. Both are positive signs for future economic activity.”