Supported by a more “open” economy and record fiscal stimulus, the economy rebounded sharply in the third quarter, and investing activity followed suit. The aggregate value of venture capital (VC) investment increased 11% year over year in the third quarter of 2020 to reach $38 billion. And we’re seeing similar trends in private equity (PE) with year-to-date investments trending 7% higher than the same periods of 2019.
Both VC and PE investors appear to be continuing the trend of investing larger amounts of capital in fewer, high-quality deals.
Lender data does suggest that banks are becoming stricter on lending standards as delinquency rates inched up during the third quarter. As they tighten their lending standards, rates charged to borrowers may increase for some borrowers.
Public company investors had no shortage of new opportunities to invest in, as the third quarter was the busiest third quarter since the dot-com era. Eighty-one companies underwent initial public offerings during the quarter, raising just shy of $26 billion.
Download our Third Quarter 2020 Financing Update here.
As always, contact us if you would like to receive information about activity in your specific industry or if you would like to discuss options for your business.