Startup funding and exiting exercise has been sluggish over the previous few months within the U.S. Fewer corporations closed rounds, IPO volumes have been mild, and never a number of large M&A deals got done.

But that’s to be anticipated, proper? After all, it was summer time break. Now that Labor Day’s over and we’re again at our desks, we will count on deal volumes to select up.

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That seasonal clarification for a sluggish enterprise funding local weather appears comforting on the heels of a muggy July and August that have been conspicuously bereft of massive exits. And it actually looks as if September is off to a extra action-packed begin, with new IPO filings and large funding rounds.

But is fundraising and exiting seasonal? To try a solution, we dug into Crunchbase information to see if this summer time was certainly an unusually sluggish interval. Then we checked out whether or not an autumnal rise in exercise is typical. We checked out three areas: startup fundraising, acquisitions, and IPOs, evaluating 2017 to the prior 4 years.

Here is the way it breaks down.

Fundraising

Recent years’ information indicated that there’s no notable summer time slowdown for startup fundraising. In reality, for the previous 5 years, summer time has really been fairly common by way of deal depend throughout all phases from seed by means of late-stage.

You can see that within the chart beneath, which reveals the entire variety of seed and enterprise funding bulletins for North American startups every month over the previous 5 years:

For this 12 months, at preliminary look, it does appear to be spherical counts took a dive this summer time. There was a month-to-month common of 400 funding offers introduced in July and August, about 10% decrease than the to-date 2017 month-to-month common. However, that’s extra possible due to a lag time in reporting than a steep month-over-month decline. Typically, about half of seed-stage offers get reported after quarter’s finish.

That’s to not say funding wasn’t sluggish in comparison with prior years. Round counts are down total, led by a slide in seed-stage financings. It was a sluggish summer time in comparison with final 12 months even correcting for the lag. But it was additionally a sluggish spring.

Since reporting of Series A and later stage rounds is much less more likely to present a lag, we additionally put collectively a dataset that excludes seed and angel offers. Here, it additionally seems the summer time months are about common by way of spherical depend. More usually, it’s November and December which might be slower-than-average, whereas January is often fairly busy. September, as one would possibly count on, can be normally above-average for funding exercise.

M&A

It seems venture-backed M&A offers get introduced at roughly the identical tempo in summer time as every other time of 12 months.

Looking at M&A volumes over the previous 5 years, we didn’t see a notable development of both seasonal slowing or acceleration. For this 12 months, there have been 36 acquisitions introduced in July and 48 in August for personal corporations in North America that had raised VC or seed funding within the prior three years. That’s on par with the typical tempo for 2017, which is 46 offers monthly.

However, there weren’t a number of big-ticket offers within the combine. Cisco’s $320 million acquisition of datacenter know-how supplier Springpath was really the largest disclosed-value buy of the summer time.

However, that’s additionally not distinctive to summer time. Overall, 2017 has been sluggish for M&A. So far this 12 months, we’ve seen only one large unicorn M&A deal: Cisco’s $3.7 billion buy of AppDynamics in January. Two different one-time unicorns have been acquired this 12 months: information administration know-how supplier Simplivity and Middle Eastern on-line retailer Souq.com. Both offered for nicely beneath their peak personal valuations.

IPOs

The variety of tech IPOs has been on the sunshine aspect this 12 months, with solely a couple of dozen choices from venture-backed corporations. Summer was notably sluggish. Meal equipment firm Blue Apron and storage know-how supplier Tintri each debuted in late June, and each posted disappointing efficiency. The solely VC-backed tech-ish firm to go public in July or August was on-line brokerage Redfin, which has carried out nicely.

It’s too early to inform whether or not there will likely be a fall pickup in new choices, past a submitting on deck from Roku. Typically, we do see extra choices after summer time, nevertheless, and given the massive pipeline of heavily-funded pre-IPO corporations, there’s no purpose to assume 2017 ought to be an exception.

Back To Work

The pretty common tempo of fundings and acquisitions throughout summer time shouldn’t be taken as a sign that startups and traders don’t take holidays. Although it’s true working lengthy hours with few breaks is a popular practice in Silicon Valley, it’s additionally true that the majority funding rounds and acquisitions take some time to shut. So whereas a deal could be introduced in summer time, it’s possible that many of the work that went into it occurred earlier.

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