This document summarizes the state of the US venture capital market in Q1 2013. It finds that while LP investments in VC funds have remained stable at $19B, VCs have invested more - $26B - in startups. Both IPO and M&A exit activity for VC-backed companies remain strong. Overall, the venture market is healthy with plenty of investment activity at all stages and solid financial returns, though the funding cycle remains somewhat imbalanced with more capital going to startups than returning from exits back to LPs.