Download our Third Quarter 2021 Financing Update here.
Record fundraising and exit activity are providing a boon for record U.S. venture capital investment. In fact, more capital has been deployed in each successive quarter thus far in 2021, and total spend is nearly double so far this year over the first three quarters of 2020. It continues to be an optimal time for early-stage companies looking to raise cash.
Private equity and other growth equity investment counts in the U.S. increased 45% compared to the same quarter of 2020, while deployed capital increased 9%.
Despite a dip in IPO activity, the market for IPOs is trending similarly to overall VC activity and is on pace for the best year since the tech-led boom of 2000.
While borrowing rates remain attractive in debt markets, all signs point to rising interest rates, matching expectations of rising inflation. The urgency to obtain cheap financing while it’s available may be contributing to overall elevated deal activity.
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.