Global venture capital funding reaches new heights

The value of global venture capital investments nearly doubled to $671 billion, according to KPMG Enterprise’s latest quarterly report.

For the global venture capital industry, 2021 will go down as a vintage year with record valuations and investment levels at almost every start-up stage, while venture capital-backed company exit values ​​have tripled. compared to the previous year.

The value of global venture capital investments nearly doubled to $671 billion, according to KPMG Enterprise’s latest quarterly report. This was driven by a dramatic increase in valuations and deal sizes across all jurisdictions and investment stages, rather than the number of deals completed.

New tech companies with the most to gain from post-pandemic social and spending trends were the darlings, alongside fintech, healthcare, telecommunications and enterprise software. Corporate investment in venture capital-backed companies in 2021 hit a record $315 billion globally. With the current momentum towards larger and later-stage deals, it’s the more established ecosystems that are attracting the big money.

Venture capital investment in the Americas more than doubled to $361 billion from 17,450 deals. The United States, home to the world’s three largest venture capital tech ecosystems (the Bay Area, New York and Boston), accounted for nearly half of the value of all deals made globally. But other regions, including Europe, South and Southeast Asia and Africa, have seen equal or faster growth.

In Europe, the UK cemented its leadership position by more than doubling new venture capital investment (much of it from the US) to almost $40 billion, more than France and the United States. Germany combined, according to a Dealroom-London & Partners report.

At the end of the payment, London managed exit deals worth $88 billion in enterprise value (compared to $4 billion in 2020), with SPACs weighing $42 billion, almost as much as payments combined IPOs and mergers and acquisitions or trade sales.

Conor Moore, head of KPMG Private Enterprise in the Americas, expects the trend to remain strong: “The wealth of dry powder, along with the continued involvement of non-traditional investors and the sharp increase in activity exit, have combined to propel venture capital investments in companies across all industries to new heights.

In 2022, less developed venture capital markets such as the Middle East and Africa are expected to attract more attention. Fintech is expected to remain in vogue, as are health technologies, B2B services, cybersecurity and artificial intelligence solutions, with big deals ruling the roost.

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