VC investments moved at a high pace in the fourth quarter of 2021, remaining close to record levels, at the close of a year mark for the global VC market. According to the Venture Pulse for the fourth quarter of 2021, the quarterly report issued by KPMG Private Enterprise on VC trends in key geographical regions around the world recorded particularly high quarterly levels for total VC investments, volume divestment transactions and global fundraising.
Global VC investment topped US $ 150 billion in consecutive quarters this year, reaching US $ 171 billion through 8,710 transactions in the fourth quarter of 2021, just below US $ 180 billion through US $ 9,953 transactions achieved in the third quarter of 2021.
Nine mammoth transactions of more than US $ 1 billion from companies in the US and Asia gave a significant boost – contributing more than US $ 13.5 billion to total global quarterly investment – including US $ 2.5 billion in rounds of financing. raised from J&T Express in Jakarta, US $ 1.8 billion from Commonwealth Fusion Systems in the US, and US $ 1.5 billion each from Gopuff in the US and Regor Therapeutics in China.
Global VC investments increased from US $ 347 billion through 31,623 transactions in 2020 to a record $ 671 billion through 38,644 transactions in 2021 – with very high valuations and increased trading volume across all geographical regions and investment stages.
The American continent dominated VC investment in the fourth quarter of 2021 with US $ 95.2 billion, contributing to the overall record of US $ 361 billion VC investment in the US continent in 2021, with US $ 330 billion. to come from the US and US $ 88 billion of them to be raised in the last quarter of the year, marking a new high of the quarter. VC investments in Europe also increased from US $ 54 billion through 8,968 transactions in 2020 to US $ 123 billion through 9,710 transactions in 2021. The Asia-Pacific region recorded VC investments of US $ 181 billion through 10,498 transactions in 2021 – compared to US $ 116 billion through 8,385 transactions in 2020.
“2021 was a remarkable year for the global high-risk venture capital investment market,” said Conor Moore, Head of KPMG Private Enterprise in the Americas and Partner of KPMG USA. “Abundance of liquidity, coupled with the continued involvement of non-traditional investors and the strong rise in divestment transactions, have combined to boost VC investment in all sectors to new levels, although the largest companies with the potential for better returns were the ones that raised and the largest funds “.
VC investment is expected to remain strong in the first quarter of 2022 in most regions, with less developed VC markets, such as Africa and the Middle East, expected to attract more VC investor interest. The fintech industry is likely to remain one of the most attractive investment sectors, as are B2B services, healthtech, cybersecurity and Artificial Intelligence solutions in all areas.
“2021 has been a milestone year for VC investment worldwide, characterized by high valuations and ever-increasing trading, as investors continued to raise funds in advanced stages,” Moore said. “As we enter 2022, we expect divestiture activity, both in terms of IPOs and acquisitions and mergers, to remain strong and continue to generate sound valuations, for another year of strong investment in the VC ecosystem,” said Conor. Moore.
Commenting on the report, Dimitris Lambropoulos, General Manager, Deal Advisory of KPMG in Greece, said, “2021 is a milestone year for the value and volume of VC investments made worldwide. This performance indicates both the high availability liquidity and the intention to take a higher risk by the managers of Venture Capital, especially for transactions in high-tech sectors in the context of the fourth industrial revolution (Industry 4.0). as well as the high valuations of divestment transactions. ”
Key points of the fourth quarter of 2021
Global VC investments fell from a record US $ 180 billion through 9,953 transactions in the third quarter of 2021, to US $ 171 billion through 8,710 transactions in the 4th quarter of 2021. US $ 82.8 billion of these investments – a new quarterly record – came from the US alone.
At the geographical level, VC investment was dominated by the US in the fourth quarter of 2021, with US $ 95.2 billion, followed by Asia (US $ 46.2 billion) and Europe (US $ 28 billion). ).
– VC corporate investments remained strong, at US $ 81 billion in the fourth quarter of 2021, slightly deviating from the previous record of US $ 90 billion in the third quarter of 2021.
– The percentage of corporate investments reached a new high in the fourth quarter of 2021, with the participation of companies amounting to 29.4% of all VC transactions worldwide.
Key points 2021 on an annual basis
– Global VC investments increased from US $ 347 billion through 31 623 transactions in 2020 to US $ 671 billion through 38 644 transactions in 2021. A record year was recorded for VC investments in all geographical regions worldwide.
VC investments in the Americas more than doubled from US $ 175 billion through 13,600 transactions in 2020 to US $ 361 billion through 17,449 transactions in 2021.
VC investments in Europe also doubled from US $ 54 billion through 8,968 transactions in 2020 to US $ 123 billion through 9,710 transactions in 2021.
– The Asia-Pacific region recorded VC investments of US $ 181 billion through 10,498 transactions in 2021- compared to US $ 116 billion through 8,385 transactions in 2020.
– Average global pre-money valuations for D + rounds more than doubled on an annual basis, reaching US $ 1 billion.
– Global VC corporate investment remained attractive at the close of the year, at US $ 81 billion in the fourth quarter of 2021 – meaning it was the second best quarter ever, closing with an annual record of US $ 315 billion .
For the first time, funding recovered both in number and in total VC funds invested, reaching US $ 54.3 billion in 2021, rising from US $ 31.1 billion in 2020.
– The value of its divestment transactions by VC-funded companies recorded another strong quarter, while on an annual basis it increased from US $ 473 billion in 2020 to US $ 1 378 billion in 2021. Its total value exceeded US $ 1 trillion for the first time in history. At the top was the US with US $ 774 billion.
You can find KPMG Venture Pulse here.
Source: Capital
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