The equity capital industry’s comeback from fear in Q1 and parts of Q2 to Q3 greed deserves understanding. To get our hands around what happened to personal capital in 2020, we’ve taken looks into both the United States’ VC scene and the worldwide picture today.
Capturing you up, there was lots of personal money offered for startups in the 3rd quarter, with the cash tilting towards later-stage rounds.
Late-stage rounds are bigger than early-stage rounds, so they take up more dollars individually. Q3 2020 was a standout period for how high late-stage money stacked up compared to cash offered to more youthful startups.
For instance, according to CB Insights data, 54% of all equity capital money purchased the United States in the third quarter was part of rounds that were $100 million or more. That worked out to 88 rounds– a historic record– worth $19.8 billion.
The other 1,373 venture capital handle the United States throughout Q3 needed to split the staying 46% of the money.
While the wider international and domestic equity capital scenes revealed signs of life– dollars bought Europe and Asia rose, American seed deal volume perked back up, that sort of thing– it’s the late-stage data that I can’t shake.
To my non-American pals, the information we have offered is focused on the United States, so we’ll need to examine the late-stage dollar boom through a domestic lens. The basic points ought to apply broadly, and we’ll constantly do our best to keep our point of view broad.
A late-stage takeover
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.