The VC sector has drawn family office and other wealth management money in recent years.

Venture capital investment in the US totaled $28.2 billon across the US in the third quarter of this year, spanning 2,265 deals, shrugging off uncertainty in public and private markets, according to a quarterly report by KPMG Enterprise. 

The VC sector has drawn family office and other wealth management money in recent years because its illiquidity premium is sufficiently attractive so far for investors concerned about low yields in more established markets. Preqin, a research firm that tracks VC and other alternative investments, recently noted that VC assets under management rose to $856 billion as of December 2018, a record.

In its report, KPMG Enterprise said the quarter's top deal in the US and globally was the $785 million raised by e-cigarette manufacturer Juul Labs. While there were no billion-dollar deals this quarter, the US continued to see “numerous deals” between $100 million and $500 million, the report said. These deals covered sectors including financial services, mobility, automotive, healthcare and insurance. 

"VC investment in the US continues to lead the way globally and is likely driving a lot of the investments in other regions, including Europe and Latin America," Conor Moore, national private markets group leader in the US, said. "The VC firms and corporates getting squeezed out in the US are now embracing opportunities to invest in other regions."

At $7.7 billion invested so far this year, the total sum of VC invested in first-time financings for the US is likely to result in one of the most robust years on record, despite a slowdown in deal volume.