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Banner year for venture capital investments, says PitchBook/NVCA

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Venture capital investments hit record highs in 2021, nearly double the total invested by venture capital firms in 2020, according to the PitchBook-NVCA Venture Monitor released Thursday.

Venture capital firms invested $329.9 billion in an estimated 17,054 U.S.-based companies in 2021, up from $166.6 billion that was invested in 12,173 companies in 2020, the monitor said.

Venture capital firms also had more exits in 2021, recording 1,875 that were worth a combined $774.1 billion, compared to 1,123 exits totaling $288.9 billion in 2020.

U.S. venture capital firms also raised a record $128.3 billion in new capital in 2021 among 730 funds, compared to $86.9 billion among 733 funds in 2020. The median fundraising value in 2021 rose to $50 million from $42.1 million the previous year, while the average fundraising value jumped to $188.1 million from $156.9 million.

Nontraditional investors, such as sovereign wealth funds and family offices, participated in an estimated 6,483 deals, resulting in $253.8 billion in deal value, up significantly from the previous year when non-traditional investors participated in 3,948 deals totaling $126.9 billion.

The participation of nontraditional investors also accounted for more than 90% of the more than 800 megadeals that closed. The monitor defines megadeals as transactions more than $100 million in 2021

The PitchBook-NVCA Venture Monitor is a quarterly report on venture capital activity by the National Venture Capital Association and PitchBook with the support of Silicon Valley Bank and Carta. The monitor can be downloaded on PitchBook’s website. Registration is required.