Download our Second Quarter 2021 Financing Update here. Early-stage investors continued to deploy capital in record-breaking sums, with the $75 billion deployed in the second quarter matching the first quarter total. Despite a dip in transactions, transaction counts remain elevated from a historical perspective. It continues to be an optimal time for young companies looking to raise cash through equity investment. Similar to the record-breaking taking place in the venture capital world, activity for initial public offerings is also taking place at a rapid pace. In fact, the IPO market hasn’t been this hot since the Dot-Com era. Private equity deal volume decreased 5.2% compared to the first quarter of the year. Download our Second Quarter 2021 M&A Update here. The year is shaping up to be a great year for M&A activity, as a number of factors – strong economic growth, record government spending and stimulus, low borrowing rates, and easing inflation worries – are leading to record deal-making. Deal volume during the quarter was approximately double the volume in the second quarter of 2020, and year-to-date volume is 20% higher than the year-to-date period of 2019. Though there are risks to continued growth, we believe the market will remain strong in the short-term. In addition to the reasons above, the stock market continues to touch new highs, and executives continue to be optimistic. Risks to economic growth include restrictions related to the ongoing COVID-19 pandemic, a resurfacing of inflationary concerns, and any changes to the Federal Reserve’s existing policies. |
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