5 questions for venture capital in Q3 – TechCrunch
In a way the third quarter 2021 is coming to an end. Instead of a time filled with family and friends and fun, in many parts of the world the COVID era has dragged on, largely leaving us to work from home and make more phone calls than we do. impromptu brunches. Alas.
But in recent quarters, COVID and its impacts have proven to be attractive times for both fundraising and startup growth. The second quarter, for example, saw huge sums of private capital disbursed around the world, partly based on the underlying performance of the startups themselves, and partly through inexpensive venture capital funds.
The Exchange explores startups, markets, and money.
Read it every morning on Extra Crunch or receive The Exchange newsletter every Saturday.
Now, with the close of the third quarter, The Exchange is gearing up for a long dive into global venture capital results. To begin with, today we’re asking a series of questions: We want to understand how strong Europe’s third quarter has been, and whether the region can match its past fundraising results – stellar. We are interested in what is happening with the Chinese venture capital market following a multitude of regulatory changes.
We also want to know whether the United States maintains its position as the world’s largest venture capital market and where in the country capital flows most freely. And we want to know where in Latin America we are seeing the greatest acceleration in fundraising, as well as the importance of mega-tours compared to recent aggregate world totals; big business still setting the tone for global company totals?
Today we’ll explore each question in brief, before what we assume to be a long, multi-part dive into the data once the third quarter ends later this week.
Has the venture scene in Europe continued to raise record amounts?
Our first question for Europe will be whether it managed to match its impressive second quarter results. There are signs that this may have been the case, as France recently celebrated the slightly random but no less important milestone of ‘€ 1 billion raised in one day’. We suspect that these deals were actually announced one after the other because none of the startups involved wanted to miss the spotlight after raising record amounts – $ 555 million for the Mirakl market platform, $ 680 million for fantasy sports startup Sorare and $ 209 million for Vestiaire Collective.
In the process, we’ll likely look at whether this has anything to do with Brexit: is capital just being redirected out of the UK? Our hunch is that this is not the case, as we still hear about a lot of activity in London and beyond. But the capital that could have continued to flow in that direction could now go to other places in Europe. So we’ll take a closer look at how widely they are distributed, as well as what’s happening with Euronext in terms of tech IPOs.
What’s going on with the Chinese venture capital market?
Recent regulatory changes have reshaped China’s tech landscape. Tech giants have been brought under control, and rule changes for edtech, social media, games and other varieties have rocked both tech companies and other industries across the country. Despite all this, it is not difficult to find comments on the possible positive impact on the Chinese economy thanks to the new set of rules.