When the pandemic hit the U.S. earlier this year and tech companies began laying off thousands of employees, analysts warned of a bumpy ride ahead for startups and venture capital investment.
To say the industry stabilized would be an understatement.
New Q4 numbers from the latest PitchBook-NVCA Venture Monitor show that U.S. startups broke another record in 2020, reeling in $156.2 billion, topping the previous mark set in 2018 ($142.7 billion) and last year’s total ($138.1 billion).
“Tragic as the pandemic has been, it has created a global need to re-think and re-set many practices and behaviors,” Joe Horowitz, managing general partner at Icon Ventures, said in a statement. “This has spurred significant demand for new innovative solutions and a digital acceleration, fueling the pace of venture capital investment.”
Seattle area boasts 10 fast-growing unicorns: Can you name the billion-dollar startups?
There were also records set last year for capital raised by VC funds, and a near-record for VC-backed exit value with a strong IPO market. That should mean continued momentum heading into 2021 as investors have “dry powder” to put to work, said Bobby Franklin, president and CEO of NVCA.
Deal count dropped slightly year-over-year while a record 321 mega-deals ($100 …read more