Venture capital

In the first quarter of 2021, the total amount of global venture capital reached 125 billion US dollars, with a year-on-year growth of 94% From Crunchbase

The following is the In the first quarter of 2021, the total amount of global venture capital reached 125 billion US dollars, with a year-on-year growth of 94% From Crunchbase recommended by And this article belongs to the classification: Venture capital.

According to the latest data of CrunchBase, an American enterprise services database company, in the first quarter of 2021, the total amount of global venture capital reached 125 billion US dollars, with a month on month growth of 50% and a year-on-year growth of 94%.

According to CrunchBase, this is the first quarter to exceed $100 billion, with financing reaching an all-time high.

The second to fourth highest quarters of global financing are the fourth quarter of 2018 (US $92 billion), the second quarter of 2018 (US $91 billion) and the third quarter of 2020 (US $87 billion).

Change of global total investment from Q1 in 2020 to Q1 in 2021

With the investment boom, there are about two new Unicorn companies on average every working day, which is much higher than last quarter’s data.

Novel coronavirus pneumonia index has also hit a record high after more than a year of the global new crown pneumonia outbreak. Private companies have more ways to go public, including through spac.

After a year of massive growth for many tech startups, the M & a market is stronger than ever.

The data quoted in this paper are directly from CrunchBase, and the data is as of April 6, 2021. From the date when financing, acquisition, IPO and other financial events were reported, CrunchBase converted foreign currencies into US dollars at the spot exchange rate at that time.

01. Seed & Angel round: the total amount of financing is stable and the quantity is declining

Seed round & Angel round financing includes seed round, pre seed round, angel round financing, unknown venture capital, equity crowdfunding and convertible bonds of less than 3 million US dollars.

In the first quarter of 2021, the amount of seed round financing was relatively stable, with the total amount of venture capital reaching US $4.1 billion, and the amount of financing showed a downward trend.

The total amount of Global Seed & Angel round financing and the number of transactions from Q1 in 2020 to Q1 in 2021

It is worth noting that financing at this stage is often affected by data lag. Therefore, with more and more transactions in the CrunchBase database, the amount of financing may increase over time: generally, 40% of transactions increase in the year after the end of a quarter, and the increase in transactions after two years is as high as 50% – 60%.

Novel coronavirus pneumonia is a key factor in the second quarter of 2020. The most likely reason is that venture capitalists focus on supporting the company’s investment portfolio in coping with the new outbreak of new crown pneumonia rather than seeking new investment opportunities. But by the third quarter of the same year, this trend had reversed, and the number of venture capital reached a new high.

02. Early: record financing   The data lag is obvious

The early financing stage includes round a and round B financing, as well as enterprise venture capital of unknown series and other venture capital of more than US $3 million and less than US $15 million.

In the first quarter of 2021, the amount of early financing increased sharply, reaching US $35.5 billion, an increase of 45% on a month on month basis and 63% on a year-on-year basis.

Change of total early investment from Q1 in 2020 to Q1 in 2021

This is partly due to the increase of more than $100 million in each round, but this is not the only reason.

Due to the lag of the data mentioned above, the amount of financing will generally decline in the latest quarter, but this quarter has seen a month on month growth, which shows the heat of the early investment market. If these growth trends continue, there should be more financing.

The data lag is most obvious in the early stage, and the amount of seed round financing increases significantly after the end of quarter / year. Compared with previous quarters, the most recent quarter / year will increase over time.

From the statistical results of the amount of financing in CrunchBase, we can see that there is a big data lag, especially in the seed stage and early stage, which is as high as 30% – 40% in a year.

03. Later stage: financing growth is the fastest   79% over $100 million

The later financing stage includes round C, round D, round e and later investment rounds, as well as unknown series of venture capital, enterprise venture capital and other investments of more than 15 million US dollars.

In the first quarter of 2021, the growth rate of post financing and technology growth financing (from private equity investment to venture capital backed companies) was the highest, with a month on month growth of 56% and a year-on-year growth of 122%.

Total global investment in post investment and technology growth from Q1 in 2020 to Q1 in 2021

In the later financing stage, 79% of the financing amount exceeded US $100 million, compared with 74% in the previous quarter and 63% in the first quarter of 2020.

The dominant investment areas include health care, financial services, transportation, commerce and shopping. The fastest growing industries in the same period last year include administrative services, lending, sales and marketing.

04. The pace of M & A has accelerated, with 15 acquisition transactions exceeding 1 billion US dollars

In the first quarter of 2021, the pace of M & A accelerated, with a month on month growth rate of 26% and a year-on-year growth rate of 44%. A total of 15 companies supported by venture capital made acquisitions worth US $1 billion, which is lower than 20 in the fourth quarter of 2020.

The number of global venture capital enterprises in Q1 from 2020 to 2021

Major acquisitions in the quarter included:

Hitachi, a Japanese electrical equipment company, plans to acquire globallogic, an American software development company, with us $9.6 billion;

OKTA, the US identity management company, will spend US $6.5 billion to acquire another US identity management platform, auth0, in full stock;

Byte beat’s game distribution platform, nuverse, bought Shanghai video game publisher moonton for $4 billion.

The list of world famous acquisitions in Q1 of 2021

80 IPOs with a maximum valuation of US $150 billion

There are 80 companies supported by VC going public in the first quarter of 2021. Among them, the highest IPO valuation is China’s video streaming platform Kwai (about $150 billion), Korea’s e-commerce and express company Coupang (valued at about 60 billion yuan), and China RELX (valued at about $45 billion 800 million).

The list of world famous IPO in Q1 of 2021

Roblox, a silicon valley game platform, was the largest IPO in the US in the quarter, with a market valuation of about US $30 billion. The fifth largest IPO was British electric car company arrival, which was listed through spac with a market valuation of US $13 billion.

06. New Unicorn holds up half of global financing

In the first quarter of 2021, global Unicorn companies raised $57.9 billion, accounting for almost half of the total financing. In 2020, unicorn financing accounts for about 1 / 3 of the total amount of venture capital.

A total of 112 companies entered the CrunchBase private Unicorn board in the quarter.

The list includes a list of private companies valued at $1 billion or more, namely Unicorn companies. On average, two new Unicorn companies are added every working day.

A partial list of private Unicorn companies in CrunchBase

In contrast, 159 companies will join the list in 2020, adding about one new Unicorn company every two working days.

Conclusion: at the beginning of this year, the VC market is booming

Overall, according to CrunchBase, both early and late financing reached an all-time high in the first quarter of 2021. Among them, post financing dominated the quarter, accounting for 68% of venture capital and growth stocks of venture capital backed start-ups.

There was no parallel in history. The novel coronavirus pneumonia outbreak in the past year has created favorable conditions for the adoption of technology. More than 770 companies entered the CrunchBase private Unicorn list, 220 companies in the emerging Unicorn list, and 2300 companies started financing from round a in the first quarter. As long as the open market remains strong, the venture capital market will be a hit in 2021.

China’s start-ups have received US $93.8 billion in investment in 2018. CrunchBase: 2017 Q1 global venture capital ecological inventory. CrunchBase: the total amount of technology angel investment in 2013 exceeds US $1 billion. CrunchBase: there are 9100 global venture investments in Q3 in 2019, with a total of US $75.6 billion. CrunchBase: analysis report on start-up companies financing 2530 The sale price of US $10 million is nearly 200 million Crunchbase:2018 years, and the related start-ups get $127 million venture capital Crunchbase: China’s educational technology start-ups continue to absorb large investments CrunchBase:2018 the number and amount of venture capital in the United States surpass the “Internet bubble” when the highest value is Crunchbase&Mind the Bridge: American Technology Corp is still the most active in the world. Acquirer: CrunchBase: Global Unicorn financing from January to July 2018: 73 billion US dollars CrunchBase: 2016 US University Alumni set up start-up company data interpretation CrunchBase: in 2017 Q1 AR / VR investment only 200 million US dollars, a year-on-year drop of 80% CrunchBase: birth of 142 unicorns in 2019 Make investment difficult to exceed 2012 level

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