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. While equity financings are firing on all cylinders, the debt market remains an attractive option to raise cash, as rates remain suppressed and lending standards ease. Businesses in unique situations, such as those with an ESG focus, can even secure lower rates than conventional loans.
Despite rising concerns of further economic restrictions resulting from increasing risks of the Delta variant of COVID, we are highly optimistic of financing opportunities in the short term. The stock market is continuously reaching record highs, borrowing is cheap, and investment firms are raising record levels of cash. As always, contact us if you would like to receive information about activity in your specific industry or geography, or if you would like to discuss options for your business. Comments are closed.
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