Collapse in Q4 Venture Deal-Making Could Signal End of Unicorn Era

A study released in October found that venture capital firms were raising significantly less money than in previous quarters. Around that time, a bunch of well-known investors — likeUnion Square Ventures’ Fred Wilson — began saying that the days of steady unicorn valuations were coming to a close.

Here’s more cold water: An upcoming report from CB Insights says that VC funding levels in the fourth quarter of 2015 “fell 30 percent amid weakening mega-round activity while deal activity fell 13 percent vs. the previous quarter.”

Here are the core findings from the KPMG International & CB Insights 2015 Venture Pulse Report, which will be released on January 19:

In the third quarter of 2015, there were 72 $100 million equity funding rounds for VC-backed companies. In Q4, there were only 39 of those gigantic growth equity rounds.There were only nine new unicorns birthed in the fourth quarter, versus 23 in Q3.Deal-making activity in general fell to its lowest levels since the first quarter of 2013.

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