PitchBook News - US VC is swimming in capital

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The Weekend Pitch

October 17, 2021

Presented by Elements Global Services

(Retrorocket/Getty Images)

Nobody wants to miss out on the great venture capital gravy train of the 21st century.

Earlier this year, Silicon Valley-based IVP closed on $1.8 billion for its 17th and largest flagship venture fund, with a stated strategy of placing bets on later-stage, high-growth tech darlings like Robinhood and Coinbase. That was the firm's official narrative for standing up a big new fund, but arguably this says much more about how fund allocators like pensions and endowments are flooding the VC market so overwhelmingly that venture capitalists are barely treading water trying to keep up.

Such is the magnitude of capital being thrown into the asset class by limited partners, who are racing to up their own VC bets in pursuit of ever more exposure to opportunities in the tech boom.

The latest data amassed by PitchBook paints a dramatic picture of the US venture market: Right after 2020 set new high-water marks in fundraising, deal flow and exits, along came 2021 (or three-quarters of it). And, boom, it already has blown away the old records—even with three more months still remaining on the calendar.

I'm Alexander Davis, this is The Weekend Pitch, and in this edition, we'll take stock of the record-smashing year with a series of visual snapshots capturing highlights of the data. Hit me up with your questions or observations at alec.davis@pitchbook.com, and please follow me on Twitter via @alecdavis.

Quote/Unquote

(Mark Garlick/Getty Images)

"He who controls the algorithm controls the future.

—Elad Verbin, founding partner at Lunar Ventures.

The German VC firm recently closed its debut vehicle to back software startups in the deep tech sector, making Lunar one of the few specialist investors focused on the next phase of deep tech in Europe.

Datapoints

Henry Kravis and George Roberts in college (Courtesy of KKR)

Henry Kravis and George Roberts, who founded private equity giant KKR in 1976, stepped down as co-CEOs last week.

From dot-com deals gone bust to Toys R Us and Dollar General, check out our 20-year lookback at the dealmaking that defined KKR's transformation into a buyout pioneer and beyond.

Deal Flow

(aelitta/Getty Images)

VC investment in European HR tech startups has hit a record €1.9 billion (about $2.2 billion) so far this year, according to PitchBook data.

Venture investors have been keen to capitalize on the growing need for digital tools—as the global shift to remote or hybrid working transforms the way HR operates across hiring, training and talent retention.

Did you know ...

(Ido Meirovich/Getty Images)

…That cybersecurity startups founded in Israel account for more than a third of global venture capital funding in the sector so far this year?

We took a deep dive into the largest deals and how the Middle Eastern country accounts for an astounding percentage of global cybersecurity deals.

Recommended reads

Why a lasting effect of the pandemic will be a revolution in worker expectations. [The Atlantic]

The sketchy rhetorical tricks of politicians, celebrities and con men—and how they work. [Bloomberg]

As global leaders prepare for the COP26 summit, the world is in the first big energy shock of the green era. [The Economist]

The battle for Motor City: Why Ford chose Tennessee for its electric factory. [Financial Times]

The death of the "LinkedIn model" fully decouples Chinese social media from the rest of the world. [Fortune]

Dozens of federals judges have reported trading stocks of litigants while they presided over cases involving companies including Walmart, Pfizer and Medtronic. [The Wall Street Journal

This edition of The Weekend Pitch was written by Alexander Davis and Priyamvada Mathur. It was edited by Andrew Woodman, Kate Rainey and Sam Steele.

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