Investing

VC deployment set records

Venture firms raised record amounts of money in 2021 and they put that money to work in record amounts, as well.

Compared to 2020, 2021 saw 27% more deals, and capital invested increased by a whopping 98% to nearly $330 billion. In fact, each quarter in 2021 outdid the last, with four new quarterly deal value records set in succession.

Year-over-year increases in deal count and deal value were seen across all stages, with the increases in capital invested at the early and later stages being the most pronounced. The number of mega rounds of over $100 million rose from 335 to 819 and had an outsized impact on the increasing amounts of early stage and later stage capital invested.

2021

819

Mega rounds

98%

Increase in capital invested

27%

Increase in deals

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The frenzied pace of activity was propelled by:
  • Virtual deal making
  • Compressed due diligence processes
  • Condensed time between financings, with many companies raising capital annually
Trends driving investment activity, particularly at the later stages:
  • Companies staying private longer, inviting more private capital to fuel their growth
  • Increased competition and valuations
  • Increased participation from non-traditional investors
  • A robust IPO market for high-growth technology companies
“Last year, VC funding poured into the market from every angle as the ecosystem accepted multi-billion-dollar financings, $100 million Series A deals and “mango” seed rounds as the new normal.”

Becca Szkutak, Forbes

trend: Tiger Global

The cross-over investor was a hot topic in many investor circles last year.

335
Deals financed

Tiger Global’s practices of pre-empting rounds, moving expeditiously through due diligence, paying above-market prices, rapidly deploying capital, and not insisting on board seats is viewed as aggressive by some, and disruptive by others. Either way, the cross-over investor was a hot topic in many investor circles last year.

2021
$15.5B
Capital raised
2
Funds closed
335
Deals financed

The industry is paying close attention to Tiger and other late stage and cross-over investors amidst an early 2022 sell-off in the stock market to see if the feverish investing environment continues or abates.

“Tiger has introduced a new play style centered around velocity to disrupt the market and exploit their competition’s tendency to cling onto stale rules/norms. Tiger offers founders a new product that takes the exact opposite stance [from a typical venture/growth fund’s product]. I call Tiger’s product for founders Better/Faster/Cheaper Capital.”

Everett Randle, Founders Fund

web3

Easy for skeptics to dismiss, impossible for enthusiasts to ignore.

Read more insights in our detailed Web3 analysis into why the sector is attracting more interest from developers, investors, and consumers than ever before.

Surpassed all prior years combined
$32B
Invested in the blockchain sector
2K+
Startups
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2020 broke all the records…and 2021 smashed them. While a slowdown could occur in 2022, the industry should still have plenty of dry powder to maintain a high rate and pace of investment.