VC deals broke records in 2020 surpassing $150 billion in deals – Business Insider

The VC industry exceeded in 2020 in all sorts of methods, for the very first time investing $150 billion in startups in a single year, according to brand-new research study launched Thursday by Pitchbook and the National Venture Capital Association.
Part of that was, paradoxically, due to the financial unpredictability of 2020. It caused VCs to pull away back to safer-bet companies and invest mainly in late-stage business..
They also broke records in fund raising for themselves. “VC firms closed a record 44 mega-funds– automobiles totaling $500 million or more– in 2020, which was almost double the 24 closed in 2019,” said the report.
Which indicates that 2021 is already shaping up to be another record-breaker, with $152 billion in unallocated money waiting to be invested.
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A massive $100 billion was invested in late-stage business, making it the third year in a row that late-stage offers have surged.Cameron Stanfill, an expert at PitchBook, anticipated this pattern in a panel earlier this year, stating VCs would focus on late-stage business to “extend their runway” and “make sure theyre going to come through this crisis more powerful than ever. VCs likewise had a record-breaking year in their own fundraising efforts.” VC firms closed a record 44 mega-funds– lorries amounting to $500 million or more– in 2020, which was nearly double the 24 closed in 2019,” the report said.

In spite of cancelled flights, closed offices, a spring full of mass layoffs, rolling lockdowns, and the heartbreaking death toll from COVID-19, VCs still handled to break records in 2020. A massive $100 billion was invested in late-stage companies, making it the 3rd year in a row that late-stage deals have surged.Cameron Stanfill, an expert at PitchBook, anticipated this pattern in a panel previously this year, stating VCs would prioritize late-stage companies to “extend their runway” and “make sure theyre going to come through this crisis more powerful than ever. VCs also had a record-breaking year in their own fundraising efforts.” VC firms closed a record 44 mega-funds– cars totaling $500 million or more– in 2020, which was almost double the 24 closed in 2019,” the report stated.

And that suggests the VC industry is heading into 2021 with $152 billion in “dry powder,” a monetary term for unallocated cash waiting to be invested.Michael Chow, NCVA Director of Research, informed Insider this is excellent news for everybody. “Venture capitals record-breaking year in 2020 is excellent news not just for the industry, however likewise the broader economy,” he said.” VC-backed business play a crucial role in U.S. job development, and the strong position the industry finds itself in leading into 2021, with ample dry powder to deploy and robust public markets, will accelerate the healing from the pandemic-induced slump.”.

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