CB Insights - VC doubled in 2021

Hi there, 

We released our VC data bible — aka the 273-page State Of Venture 2021 report — today. 

In one word, 2021 was…BONKERS.
 

Global venture funding reached a record $621B in 2021, more than double the 2020 mark of $294B.

Folks will make comparisons to the dot-com bust of ‘99-’00, and let’s be honest, those folks don’t know what they are talking about. It’s a facile argument they’ve been making for 8-10 years.

Yes, there is certainly some exuberance and funding could pull back a bit, but the reality is that venture and private markets are big, growing fast, and here to stay. 

Why?

• Venture is global — More deals happen in Asia than the USA, as you’ll see in the report. But technology-driven innovation is coming from everywhere — Latin America, Africa, SE Asia, Europe, India, China, etc.
• It’s every industry — No industry is immune from digitization. From financial services to healthcare to industrials to retail, there are new technologies and new business models enhancing or upending these industries.

Hornography

The global unicorn count hit 959 in 2021 — up 69% from 2020 — with the year seeing a staggering 517 unicorn births.

Yes — 517 new companies hit the $1B+ valuation mark in 2021. 

That’s ~2.1 unicorns per business day. Per day.

As more companies get funded, the M&A landscape is also heating up. Global M&A crossed the 10,000 transaction mark for the first time in 2021 – increasing 58% compared to 2020.

More liquidity makes the venture world go round. This recycling and replenishment of capital is a good thing for the ecosystem.

The report breaks down regional funding trends, which investor took the #1 spot of the year, the biggest financing deals, and a whole heap more. Grab the State Of Venture 2021 report.
 

You know you want to

Get an inside look at the State Of Venture 2021 with our analyst team as they share some data points and perspectives not in the report. 

In our live webinar on January 27, CB Insights Senior Analyst Chris Bendtsen will dig into: 

• What you can expect for the global unicorn herd next quarter and beyond

• What record funding tallies across regions mean

• What’s in store for Silicon Valley, fintech, SPACs, and more

Sign up here to get answers to your questions about venture in 2021 and beyond.

a$9Bz

Earlier this week, Andreessen Horowitz (a16z) announced it had raised $9B to invest across 3 of its funds. 

In 2021, the VC firm’s deal-making accelerated dramatically.    

We mined CB Insights data to track a16z’s investments over the past 5 years to see where the firm identifies the next big opportunity — and where it’s pumping the brakes. Check out the report here.

Retail stores MVP

Amid changing consumer spending habits and ongoing labor challenges, retailers are investing in tech that helps them run stores more efficiently and drive sales productivity.

Need an adoption playbook?

Bloomberg. Lizette Chapman (@lizette_chapman) uses the CB Insights State Of Venture report in reporting on 2021 startup funding. 

Lithic. Lithic digs into the intersection of crypto and fintech and cites CB Insights data.

TechCrunch. Alex Wilhelm (@alex) and Anna Heim (@abracarioca) report on venture funding using CB Insights research.

P.S. We’re looking for a site reliability engineer to join our team. Apply here.

Client-Exclusive Research
 

[Auto & Mobility]

Unbundling GM. The auto industry is undergoing drastic changes and GM is facing a new wave of competitors across a wide range of fronts.
 

[Wellness]
Pump it. From VR fitness and gaming to wearables, these companies are making fitness more connected and accessible.

[Healthcare]
Pay up. Digital patient payments have garnered high market momentum and widespread industry leader activity in the revenue cycle management space — making it an industry worth prioritizing.