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Venture capital the market is racing, foot on the accelerator, middle finger out the window, hair on fire. This is our reading of the second quarter 2021 data released so far regarding the amount of money venture capitalists have deployed around the world in the second three months of the year.
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The second quarter of 2021 was the biggest quarter on record for venture capital activity, measured in dollars invested. The wave of funding has led to a quarterly record of new unicorns – startups that hit the $ 1 billion valuation mark – born in the United States, Asia, Europe and Canada, according to CB Insights data reviewed. by The Exchange.
FactSet data for the quarter is consistent. The second quarter broke all records in terms of dollars invested, although total trading volume declined slightly from the first quarter count.
The impact of the deluge of capital is what you would expect: round values are increasing. Transactions worth $ 100 million are setting records. Across the globe, tech hubs are enjoying a flurry of high-priced deals that enrich startups and provide them with early-stage capital that was previously reserved for IPOs and other founding fundraising events.
So today we speak through the numbers. Next week, we’ll be posting a host of geography-focused notes and reactions from investors and founders in the U.S. startup ecosystem, along with similar entries regarding the Asian and European startup markets.
Discussions with venture capitalists over the past few months have led us to expect strong second quarter results; investors spoke of ever faster tracking rounds and Tiger’s explosion of high-priced and high-priced trades. SoftBank’s second vision fund is active. And there is a myriad of seed, startup, late development, and crossover funds all competing both inside and outside of their usual investment scene groups in the hopes of ‘Acquire larger property sooner than a larger investment group might have in working to defend the past of early ownership where early stage companies used to leave the stage.
But enough words. Let’s get into the numbers. We’ll start with an overview of global results before delving into the US and Silicon Valley counts, the performance of Europe and Asia, and new data regarding venture capital activity in Africa. .
Buckle up.
A monster neighborhood
We’re relying on a number of sources this morning, but for global data, we’re relying on CB Insights, Crunchbase News, and FactSet.
CB Insights has $ 156 billion on the books for global venture capital activity in the second quarter, up from $ 60.7 billion in the second quarter of 2020. That’s a 157% gain on an annual basis. A FactSet chart shows that around $ 150 billion was raised in the second quarter, up a similar percentage to last year from what CB Insights expected.
For the first half of 2021, including the record-breaking second quarter tally, the data is equally shocking. Crunchbase News lists $ 288 billion invested during the first and second quarters of the year. CB Insights estimates the number at $ 292.4 billion. FactSet comes up with a figure it describes as “over $ 280 billion”.
These are all pretty close to us, and they say the same thing: Global startups raised as much, or nearly as much, in the first two quarters of 2021 as they did throughout 2020.
For reference, Crunchbase News notes that the first half of 2021 crushed the second half of 2020 by $ 110 billion, in terms of global capital raised.
But what about the number of rounds? Was all that capital concentrated in a few investments, or was the money flowing freely to more startups than ever before? Here, things get a bit more complicated. Data from CB Insights shows that there were 7,751 start-up transactions in the second quarter, an all-time high. FactSet has 5,400, far from its recorded record. At this point, we see discrepancies in how different data-driven companies count; Alex was involved in similar conversations while at Crunchbase and is sensitive to the difficulty of deciding what to include and what not to include in these types of surveys.
But even FactSet data indicates that the second quarter was the second best three-month period for investment rounds since the start of 2019. No matter how you count, the data points to plenty of trades – and more. of dollars.
A unicorn stampede
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