NEW YORK–(COMMERCIAL LINE). According to the Q4’21 edition of Impulse of adventure – A quarterly report released by KPMG Private Enterprise on VC trends in major jurisdictions around the world, the quarter saw near-record highs for total venture capital investment, corporate venture capital investment, exits and global fundraising.
Global quarterly venture capital investment crossed the $ 150 billion mark in consecutive quarters this year, reaching $ 171 billion in 8,710 deals in the fourth quarter of 2121, just slightly below the previous high of 180. billion dollars out of 9,953 deals reached in the third quarter of 21.
Nine mega deals worth more than $ 1 billion from companies in the US and Asia helped drive the surge, contributing more than $ 13.5 billion to total quarterly global investments, including funding rounds of 2, $ 5 billion raised by Jakarta-based J&T Express, $ 1.8 billion by US-based Commonwealth Fusion Systems, and $ 1.5 billion by US-based Gopuff and China-based Regor Therapeutics respectively .
Global VC investment went from $ 347 billion out of 31,623 deals in 2020 to a record $ 671 billion out of 38,644 deals in 2021, with a dramatic increase in valuation and deal size across all jurisdictions and investment phases.
The Americas led VC investments in the fourth quarter of 2121, with $ 95.2 billion contributing to the Americas’ record total investment of $ 361 billion in 2021, with the United States accounting for $ 330 billion, of which $ 88 billion in the last quarter of the year: a new quarterly high. VC investments in Europe also increased from $ 54 billion in 8,968 deals in 2020 to $ 123 billion in 9,710 deals in 2021. The Asia-Pacific region recorded $ 181 billion in VC investments in 10,498 deals in 2021. , compared to $ 116 billion in 8,385 deals in 2020.
“2021 was an extraordinary year for the global venture capital market,” said Conor Moore, Head of KPMG Private Enterprise in the Americas and Partner of KPMG in the United States. “The wealth of dry dust, combined with the continued involvement of non-traditional investors and the powerful wave of exit activity have combined to push venture capital investments in companies across all sectors to new levels, even as the most big companies able to track better performances, they have increased the biggest funds ”.
VC investments are expected to remain solid in the first quarter of 22 in most regions, with less developed markets, such as Africa and the Middle East, expected to attract more attention from VC investors. Fintech is likely to remain one of the hottest investment areas, alongside B2B services, healthcare technology, cybersecurity and artificial intelligence solutions across industries.
“2021 was a revolutionary year for VC investing around the world, characterized by high valuations and ever larger deals, as investors continued to pour in money in the final stages,” said Moore. “As we look forward to 2022, we expect exit activity – both in terms of IPOs and mergers and acquisitions – will remain buoyant and continue to stimulate sound valuations and deliver another year of strong investment in the risk ecosystem.”
Highlights of Q4’21
Global investment in VC fell slightly from a record $ 180 billion of 9,953 deals in the third quarter of 2121 to $ 171 billion of 8,710 deals in the fourth quarter of 21. The United States alone accounted for $ 88.2 billion. of that investment, a new quarterly record.
Regionally, the Americas led VC investments in the fourth quarter of 21, with $ 95.2 billion, followed by Asia ($ 46.2 billion) and Europe ($ 28 billion).
Corporate venture capital remained strong, reaching $ 81 billion in the fourth quarter of 2121, slightly below the previous record of $ 90 billion set in the third quarter of 2121.
The companies’ investment rate hit a new high in the fourth quarter of 21st, with companies participating in 29.4% of all VC operations globally.
Main annual events of 2021
Global VC investment went from $ 347 billion in 31,623 deals in 2020 to a record $ 671 billion in 38,644 deals in 2021. It was a record year for VC investment in all regions of the world.
VC investments in the Americas more than doubled from $ 175 billion out of 13,600 deals in 2020 to $ 361 billion out of 17,449 deals in 2021.
The European VC also doubled from $ 54 billion out of 8,968 deals in 2020 to $ 123 billion out of 9,710 deals in 2021.
The Asia-Pacific region saw $ 181 billion in VC investments out of 10,498 operations in 2021, compared to $ 116 billion out of 8,385 operations in 2020.
Global median pre-money valuations for the D + rounds have more than doubled year over year, reaching $ 1 billion.
Global corporate venture capital remained hot to close the year, with $ 81 billion invested in the fourth quarter of 21, making it the highest second quarter ever and reaching a record annual total of $ 315 billion.
Funding for the first time increased in both count and overall invested capital, reaching $ 54.3 billion in 2021, up from $ 31.1 billion in 2020.
VC’s Guaranteed Exit Value had another strong quarter and year-on-year jumped from $ 473 billion in 2020 to $ 1.378 billion in 2021. Total annual exit value topped $ 1 trillion for the first time ever. The United States led the way with $ 774 billion.
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