Looking back to March 2020, would you guess that all the major venture capital records would be broken in 2021? Amazingly, that’s exactly where the trend is heading. Here’s a look, according to investment data provider Pitchbook.
Number and Amount of Venture Capital Investment
The following has venture capital deal activity from 2011 through the second quarter of 2021. In terms of the number of deals, the number of deals is up to 7,058 – at that’s just through half of the 2021 year! The all-time high was in 2019 at 12,449. If the remainder of 2021 continues to go as the first half went, the number of venture capital deals this year will smash all prior records.
Looking at the deal value, at $150 billion through the first half of 2021, the value of deals is on course to reach $300 billion by the end of 2021. What was the prior record? Incredibly, the highest on record was 2020 at $164.3 billion in 2020. Without much possibility otherwise, the amount of venture capital investment in 2021 will smash prior records.
What about mega-deals?
Perhaps the most fascinating view from Pitchbook’s quarterly report is the mega-deal activity? The number and value of deals in 2021 has already surpassed prior records. Through just the first half of 2021, the number of venture capital deals is up to 385 and the value of deals is up to $85.5 billion. The prior record, which was for the entire year, as 2020 at $75.2 billion. Again, amazingly, venture capital activity in 2021 will smash prior records.
Crossover Activity
A third fascinating view from the Pitchbook report was the incredible growth of crossover activity in the first half of 2021. As shown below, the number of crossover deal counts through just the first half of 2021 is up to almost 300. In terms of deal value, the total deal value through the first half of 2021 has already surpassed the prior record reached in 2020 at almost $35 billion. It is nothing short of amazing what is happening in the venture capital world today.
Summing up
Overall, venture capital activity in 2021 will likely smash all prior records, perhaps never to be reached again. It is certainly an amazing time to be involved in the venture capital world and to be a company seeking early-stage venture capital investment. May the good times continue forever!
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