Record funding trend maintained strong – Crunchbase News

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The record pace of funding continues into the third quarter of 2021 with $ 160 billion invested globally, matching the huge increase in funding in the second quarter and up 78% year-over-year.

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New funding records

Before 2021, global funding had not exceeded $ 100 billion in a single quarter.

Funding in 2021 significantly exceeded that amount, with the first quarter reaching $ 135 billion, the second quarter reaching $ 159 billion, and the last quarter peaking at $ 160 billion.

Super-size

Larger financings dominated, with $ 103 billion (64%) invested in 400 companies raising $ 100 million or more in the last quarter. An additional $ 57 billion was invested in more than 4,700 companies in towers under $ 100 million.

Funding amounts of $ 100 million or more increased 97% year over year, while rounds under $ 100 million also increased 51% over the same period.

Global Venture Dollar Funding Volume Divided Below $ 100 Million

In the last quarter, 142 companies joined the Crunchbase Unicorn Board, up from 145 in the second quarter. The past three quarters have grown significantly from all previous quarters for new unicorn companies first valued in over $ 1 billion private funding, with the board now listing over 1,000 companies, valued. collectively north of $ 3.4 trillion.

Global New Unicorn Counts 2020 to Q3 2021

With this big funding disparity, let’s look at phased funding.

Early stage peaks at $ 49 billion

Early-stage funding grew the most, up 104% year-over-year and 11% quarter-over-quarter, with more than 1,900 companies raising funds so far. stadium in the world.

Despite funding delays for the most recent quarter compared to previous quarters, early stage settlements are up 19% year over year.

Global early stage venture capital dollar volume from Q3 2020 to Q3 2021

Late-stage funding over $ 100 billion

Late-stage funding stands at over $ 100 billion in the second and third quarters of 2021. Late-stage and technology-growing funding has declined quarter-over-quarter, but is on the rise significant 69% year over year.

Over 800 unique firms raised out of 849 investments, which is also up year over year compared to just under 600 firms that raised in the third quarter of 2020.

Global late stage venture capital volume from Q3 2020 to Q3 2021

Seed stage greater than $ 6 billion

Seed-stage funding is up 47% year over year and is down quarter over quarter.

The number and amounts of seed funding usually increases over time, as these deals are added to the Crunchbase dataset after the end of the quarter.

Global dollar volume of seed venture capital from Q3 2020 to Q3 2021

Exits

As of 2021 to date, we find 26 venture capital-backed companies that debuted for more than $ 10 billion. This contrasts with 2020 where half of that number, 13 companies, was valued at over $ 10 billion at the time of the IPO.

The biggest start to the last quarter was Robinhood. The company raised $ 1.9 billion and was valued at $ 32 billion at the time of the IPO.

Some of the largest public venture-backed launches in the past quarter have not followed traditional IPO routes. Lucid Motors, Ginkgo Bioworks and Cazoo went public via SPAC and Wise, Amplitude and Warby Parker via direct registrations.

Notable global IPOs in the third quarter of 2021

Successful funding year

We are on track to achieve a successful funding year with $ 454 billion invested in the first three quarters of 2021. This contrasts with the $ 332 billion invested globally in 2020 at all stages of funding.

With many growing companies raising funds at an unprecedented rate, the IPO market is expected to remain strong through the end of the year and into 2022.

Crunchbase Pro queries used for this analysis

Funding and exits

Unicorn queries

Methodology

The data in this report comes directly from Crunchbase and is based on the reported data. The reported data is from October 5, 2021.

Note that data lags are more pronounced in the early stages of business activity, with seed funding amounts increasing dramatically after the end of a quarter / year.

The most recent quarter / year will increase over time compared to previous quarters. Regarding the number of financings, we notice a significant lag in the data, in particular at the initial and initial stage, which can reach 30 to 40% per year.

Please note that all fundraising values ​​are shown in US dollars unless otherwise noted. Crunchbase converts foreign currencies to US dollars at the spot rate in effect from the date on which funding rounds, acquisitions, IPOs and other financial events are reported. Even though these events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historical spot price.

For the analysis of M&A transactions, we include companies funded by venture capital and exclude companies that have previously gone public.

Glossary of financing terms

Seed and Angel consists of seed towers, pre-seeds and angels. Crunchbase also includes unknown series venture capital rounds, equity crowdfunding, and convertible notes at $ 3 million (USD or equivalent in converted US dollars) or less.

The early stage includes Series A and Series B rounds, as well as other types of rounds. Crunchbase includes venture capital rounds of unknown series, corporate ventures and other rounds over $ 3 million, and those below or equal to $ 15 million.

The late stage includes series C, D, E and venture capital rounds with subsequent letters following the ‘Series [Letter]” naming convention. Also included are venture capital rounds of unknown series, venture capital and other rounds over $ 15 million.

Technological growth is a round of private equity investment raised by a company that has already raised a “venture” round. (So ​​basically any round of the previously defined steps.)

Illustration: Dom Guzman

Keep up to date with the latest rounds of fundraising, acquisitions and more with Crunchbase Daily.


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