Few business communities swing from boom to bust as reliably as Silicon Valley, but detecting shifts in this opaque world can be challenging. To help illuminate the field, we've created the Bloomberg U.S. Startups Barometer, a new weekly indicator that tracks the overall health of the business environment for private technology companies based in the U.S.
Our index incorporates both the money flowing into VC-backed startups, as well as the exits that are making money for investors. To smooth out some of the volatility, we calculated the average value for the last 12 weeks.
Deals tracks the number of times startups raised money from investors. Healthy deal activity suggests a bullish environment for startups.
Deal amounts tracks money startups raised from investors. The presence of big deals can create spikes in funding numbers, often reflecting a booming market for mature private companies that command high valuations.
First financings tracks the number of startups that raised money from investors for the first time. Access to financing for fledgling businesses shows a healthy entrepreneurial ecosystem and investor appetite for the riskiest bets.
Exits tracks the number of startups that were either sold to another company or filed for an initial public offering. Successful exits shape the funding environment for the rest of the industry because they return capital to shareholders and create wealth that can be used to fund other startups.