Global venture capital (VC) activity surged in the second quarter (Q2) of 2017, driven by a series of large deals in both the U.S. and Asia, according to a new report from KPMG International.

The firm reports that there was $40.1 billion (all figures in U.S. dollars) worth of global VC activity in Q2, up from $25.8 billion in the first quarter (Q1). The increase in deal activity was particularly stoked by large deals, with a total of nine deals valued at more than $500 million — including a couple of transactions worth more than $1 billion.

By geography, the U.S. accounted for more than half of the global investment total, at $21.8 billion, representing the second highest quarterly total in the past decade. Asia ranked second with $12.7 billion in deals (more than doubling the previous quarter’s total), followed by Europe at $4.1 billion.

Despite the increase in deal value, the volume of transactions declined in Q2, KPMG reports. In particular, early stage deal activity has declined. There were just 1,310 early-stage deals in Q2, down from a high of 2,674 in Q1 of 2015, it notes. Still, KPMG maintains that “the venture environment remains healthy and vibrant,” with valuations continuing to increase.

“Overall VC investment in every major region of the world was up this quarter – an incredibly positive sign following several lackluster quarters,” says Arik Speier, head of technology with KPMG Somekh Chaikin in Israel. “While the low deal count, particularly at early deal-stages remains concerning, strong fundraising bodes well for continued strength in VC investment for the remainder of 2017.”

Capital is also continuing to pour into the venture space. KPMG reports that global venture fundraising came in at $17 billion in Q2, up from $11.5 billion in Q1.

“The IPO markets gained strong momentum ending the second quarter which should set up for a strong second half of 2017,” said Brian Hughes, national co-lead partner at KPMG’s venture capital practice and partner with KPMG in the U.S. “Venture capital invested has improved significantly this quarter, with large deals in Asia, the Americas and Europe.”

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