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Unicorns took the largest share of venture capital in history this past quarter

In Q2 2016, companies valued at $1bn or more took in $8.78bn in venture capital, the highest amount on record and 40% of all venture investment during the period. Low yields are fueling much of this trend. Venture funds claimed a 10-year annualized return of 11% as of September 2015, compared to 6.8% from the S&P 500.

A sluggish acquisition and IPO market is helping to push fast-growing startups into the arms of late-stage investors. Helped along by their own record breaking streak, the investors have been happy to oblige. Endowments and pensions, as well as hedge funds and mutual funds, have poured $35 billion into venture funds in 2016, breaking records in each of the first two quarters this year. Low returns elsewhere in the economy are fueling much of this trend. Venture funds claimed a 10-year annualized return of 11% as of September 2015, compared to 6.8% from the S&P 500 Index, the Wall Street Journal reports, citing investment adviser Cambridge Associates.

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vc, usa