Download our Fourth Quarter 2021 Financing Update Here
Strong economic fundamentals – strong balance sheets, low interest rates, and high financial returns – led to a record year for early-stage investing and initial public offerings. Venture capitalists (VC) raised $128.3 billion during the year, a 47.5% year-over-year increase, while investors were also recapitalized by an astounding $774.1 billion in liquidity from exiting investments. These factors, as well as the entry of nontraditional VC investors, contributed to the $329.6 billion that was invested in early-stage companies during the year.
Private equity and other growth equity investment counts echoed venture capital activity, with a 50% increase in deal count in 2021. Meanwhile, nearly 400 IPOs raised a record $142 billion during the year. A record 27 companies raised at least $1 billion in their offerings.
Download our Fourth Quarter 2021 Mergers & Acquisitions Update
2021 was a record year for mergers and acquisitions, rebounding from a year in which portions of the economy essentially came to a halt. The 2021 economy was characterized by low borrowing costs, strong balance sheets, strong stock prices, and a surging economy, despite continued pressure from COVID-19, supply chain disruptions, and inflation concerns.
The surging economy contributed to more than 18,500 deals crossing the finish line and more than $2.75 trillion in value consideration. Even the Midwest’s current-reported 148 deals is on pace to top the busiest quarter in five years.