United States Venture Capital Review

FIRST QUARTER 2021

An LSEG Company United States Venture Capital First Quarter 2021 | United States Venture Capital Review

United States Venture Capital Deals Intelligence Venture Capital Investment Activity in U.S. Companies

$140 1800 UNITED STATES VC INVESTMENT REACHES $62.0 BILLION

1600 United States venture capital investments reached a record high of $62.0 billion from 1,543 deals in the $120

first quarter, an explosive rate of growth. This not only set an all-time high in terms of disbursements in 1400 any quarter in United States history, but exceeded the second-best quarter by 57%. Indeed, of the top $100 five quarters ever recorded in terms of dollars invested, four have occurred since Q1 2020, while of the 1200 top 25 states, 24 of them received more capital invested in Q1 2021 than in the same period last year. The average venture capital round size in the quarter also exceeded $40 million for the first time in $80 1000 history.

800 While the 1,543 venture capital deals recorded in the first quarter was not itself an all-time high, it did $60 represent the most deals completed in twenty years, when 1,845 deals were completed in Q4 2000, and round sizes were only $12.3 million on average. 600 $40 400

FIVE VENTURE INVESTMENTS OVER $1 BILLION COMPLETED $20 200 While four venture-stage investments $1 billion or greater, totaling $8.4 billion, were completed in all of 2020, in the first quarter of 2021 alone there were five such investments recorded totaling $10.2 billion. $0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 They included Robinhood Markets, Rivian Automotive, Cruise Automation, GoBrands, and Databricks. Q1 Q2 Q3 Q4 # of Q1 Deals Among top investors in United States companies in the first quarter, those completing more than 25 rounds apiece included Andreessen Horowitz, Tiger Global, Insight Venture Management, and Sequoia Capital. Venture Capital Deal Volumes by Stage In the first quarter, information technology companies secured $41.3 billion, life sciences companies completed rounds totaling $10.9 billion, while traditional sector companies closed rounds totaled the 100% remaining $9.8 billion. 90%

UNITED STATES VENTURE CAPITAL FUNDRAISING REACHES NEW HIGH 80%

Venture capital fundraising in the United States in the first quarter also set new historical records, with 70% $33.1 billion raised in 237 funds, the first quarter to beat the previous quarterly highs set in 1999 and 2000, both in terms of dollars raised and in the number of funds closed. The last quarter in which more 60% than 200 United States venture funds held a closing was in the fourth quarter of 2000. Eight funds held closings of $1 billion or greater in the first quarter of 2021. 50%

40% UNITED STATES VENTURE CAPITAL-BACKED EXITS STAY STRONG 30% United States venture backed exits totaled $50.5 billion in the first quarter, in 191 deals. While this may 20% not have been a record-breaking quarter, it did nonetheless represent the most exits completed in a first quarter since 2014, and the third strongest quarter on record in terms of dollar values. The quarter saw 10% seven exits over $5 billion, as reverse takeovers became a more prevalent exit technique.

0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Seed Early Stage Expansion Later Stage

An LSEG Company 1 Investments First Quarter 2021 | United States Venture Capital Review

Top U.S. Venture Capital Deals Top Investors in U.S. Venture Capital Deals Deal Value Company Name Deal Date (US$mil) Sector Location Firm Name Rank # of Deals Estimated Investment (US$mil) Andreessen Horowitz LLC 1 40 $1,064.8 Robinhood Markets Inc 1-Feb $3,400.0 Investment Software California Tiger Global 2 38 $1,227.2 Insight Venture Management LLC 3 29 $925.4 Rivian Automotive LLC 18-Jan $2,650.0 Electric Vehicles California Sequoia Capital Operations LLC 4 26 $1,349.3 Y Combinator Inc 5 24 $159.8 Cruise Automation Inc 19-Jan $2,000.0 Self-Driving Vehicles Michigan Accel Partners & Co Inc 6 23 $261.0 Google Ventures 7 22 $275.4 GoBrands Inc 23-Mar $1,150.0 Delivery Services Pennsylvania Ra Capital Management LP 8 22 $217.5 Connecticut Innovations Inc 9 22 $10.6 Databricks Inc 1-Feb $1,000.0 Data & Analytics California Deer Management Co LLC 10 21 $362.7 Space Exploration General Catalyst Partners LLC 11 21 $223.5 23-Feb $850.0 Aerospace California Technologies Corp 8VC 12 20 $220.7 New Enterprise Associates Inc 13 18 $587.9 Thrasio LLC 11-Feb $759.0 E-Commerce Massachusetts Henderson Global Investors Ltd 14 18 $165.7 Coatue Management L L C 15 17 $1,065.2 UiPath Inc 11-Feb $750.0 Process Automation New York BlackRock Inc 16 17 $241.0 Greycroft Partners LLC 17 17 $208.3 Stripe Inc 14-Mar $600.0 Online Payments California Index Ventures SA 18 16 $661.7 Casdin Capital LLC 19 16 $251.8 Sila Nanotechnologies Inc 26-Jan $590.0 Engineered Materials California Logos Global Management LLC 20 16 $164.2 Salesforce Ventures LLC 21 15 $214.8 EQRx Inc 11-Jan $570.0 Pharmaceuticals Massachusetts Felicis Ventures LLC 22 14 $151.2 Lightspeed Management Company LLC 23 14 $142.9 ElevateBio LLC 15-Mar $525.0 Gene Therapy Massachusetts Menlo Ventures 24 14 $100.6 Norwest Venture Partners 25 14 $85.6

Venture Capital Investments by State Top Venture Capital Deals by U.S. Firms Investing Abroad 01/01/2021 - 3/31/2021 01/01/2020 - 03/31/2020 YoY % YoY % Deal Value State Value ($mil) # of Deals Value ($mil) # of Deals Chg. ($) Chg. (#) Company Name Deal Date (US$mil) Sector Location California $31,450.8 610 $18,369.7 517 71% ▲ 18% ▲ Klarna Bank AB 1-Mar $1,000.0 Payment Solutions Sweden New York $8,285.1 212 $3,597.1 170 130% ▲ 25% ▲ Massachusetts $7,606.6 129 $3,386.1 123 125% ▲ 5% ▲ Yisheng Biopharma Co Ltd 24-Feb $839.2 Biopharmaceuticals China Michigan $2,121.4 16 $28.2 6 7424% ▲ 167% ▲ Pennsylvania $1,505.6 37 $368.1 31 309% ▲19% ▲ Beijng Shihui Technology Co Ltd 31-Mar $750.0 Food E-Commerce China Texas $1,374.3 58 $977.4 57 41% ▲ 2% ▲ Washington $1,365.6 49 $441.5 42 209% ▲17% ▲ Shenzhen Qianhai 4Paradigm Data 22-Jan $700.0 Data Modelling China Colorado $1,359.3 44 $269.0 26 405% ▲ 69% ▲ Technology Co Ltd New Jersey $675.5 14 $307.7 11 120% ▲ 27% ▲ Wolt Enterprises Oy 25-Jan $530.0 Restaurant Delivery Finland Georgia $657.4 20 $508.7 18 29% ▲ 11% ▲ Utah $615.6 21 $163.3 17 277% ▲ 24% ▲ Beijing Chusudu Technology Co Ltd 19-Mar $500.0 Self-Driving Technology China Illinois $547.6 30 $492.8 36 11% ▲ -17% ▼ Maryland $523.3 20 $217.7 20 140% ▲ 0% - Beijing Yuanxin Technology Group Co Ltd 9-Feb $466.2 Online Medical Services China Virginia $491.7 28 $245.5 22 100% ▲ 27% ▲ Florida $472.7 41 $197.4 19 139% ▲ 116% ▲ Think & Learn Pvt Ltd 29-Mar $460.0 Educational Software India Oregon $422.3 19 $65.1 8 548% ▲ 138% ▲ Connecticut $348.9 31 $97.9 26 256% ▲ 19% ▲ Checkout Ltd 12-Jan $450.0 Payment Solutions United Kingdom North Carolina $309.3 19 $339.8 18 -9% ▼ 6% ▲ Wisconsin $259.1 4 $10.7 8 2310% ▲ -50% ▼ Loft Brasil Tecnologia Ltda 23-Mar $425.0 Realtor Services Brazil D. of Columbia $243.7 13 $60.8 5 301% ▲ 160% ▲ Ohio $203.9 14 $157.9 18 29% ▲ -22% ▼ Blockchain Access Uk Ltd 24-Mar $420.0 Cryptocurrencies United Kingdom Arizona $176.3 9 $70.4 6 150% ▲ 50% ▲ Indiana $153.6 9 $43.0 8 257% ▲ 13% ▲ Dream11 Fantasy Pvt Ltd 25-Mar $400.0 Fantasy Sports India Tennessee $114.6 9 $78.7 6 46% ▲ 50% ▲ New Mexico $105.3 4 $21.6 6 387% ▲ -33% ▼ Horizon Robotics Inc 7-Jan $400.0 Artificial Intelligence China

An LSEG Company 2 Investments First Quarter 2021 | United States Venture Capital Review

Investments by Sector, Deal Values Investments by Sector, Number of Deals

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021

Computer Software & Hardware Industrial/Energy Internet Specific Medical/Health Other Computer Software & Hardware Industrial/Energy Internet Specific Medical/Health Other

Deal Size Composition of Investments, Q1 2021 Top Medical & Health Deals Deal Value Company Name Deal Date (US$mil) Sector Location 9% EQRx Inc 11-Jan $570.0 Drug Discovery Massachusetts

Medminder Systems Inc 22-Mar $400.8 Medication Management Massachusetts 16% Insitro Inc 15-Mar $400.0 Drug Discovery California

< S100 Mil Centessa Pharmaceuticals Ltd 16-Feb $250.0 Pharmaceutical Research Massachusetts 37% 10% $100 Mil < $500 Mil Affinivax Inc 13-Jan $226.0 Vaccine Development Massachusetts Crossover Health Medical 29-Mar $168.0 Healthcare Software California $500 Mil< $1 Bil Group Apc Scorpion Therapeutics Inc 7-Jan $162.0 Oncology Massachusetts >$1 Bil Century Therapeutics Inc 3-Mar $160.0 Cancer Therapies Pennsylvania

Pyxis Oncology Inc 5-Mar $152.0 Drug Discovery Massachusetts

37% Graphite Bio Inc 19-Mar $150.7 Gene Therapies California

Vividion Therapeutics Inc 1-Mar $135.0 Drug Discovery California 90% Outer Ring: # Deals Inner Ring: $ Proceeds DispatchHealth Holdings Inc 3-Mar $135.0 Healthcare Software Colorado

An LSEG Company 3 Fundraising First Quarter 2021 | United States Venture Capital Review

U.S. Venture Capital Fundraising Activity Venture Capital Fundraising, Number of Funds by Size

100%

$80 250 90%

$70 80% 200 $60 70%

$50 60% 150

50% $40

100 40% $30

30% $20 50 20%

$10 10%

$0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q1 Q2 Q3 Q4 # of Q1 Funds Closed Less than $30mil $30mil - $50mil $50mil - $100mil $100mil - $500mil Greater than $500mil

Venture Capital Fundraising, by Investment Stage (US$bil) Top Venture Capital Funds Raised Latest Closing Amount Raised in Total Fund Size Fund Name Date Period (US$mil) (US$mil) Fund Stage $0.8 TCV XI 27-Jan $4,000.0 $4,000.0 Later Stage $6.8 Bessemer Venture Partners XI 25-Feb $2,475.0 $2,475.0 Early Stage

Thrive VII 11-Feb $2,000.0 $2,000.0 Early Stage

Seed ARCH Venture Fund XI LP 27-Jan $1,850.0 $1,850.0 Early Stage

Early Stage Thrive Capital Partners VII Growth, L.P. 17-Feb $1,500.0 $1,500.0 Early Stage

GGV Capital VIII LP 28-Jan $1,464.0 $1,464.0 Later Stage Balanced ARCH Venture Fund IX, L.P. 28-Jan $1,441.6 $1,850.0 Early Stage Later Stage $18.2 $7.2 Oak HC/FT Partners IV, L.P. 24-Feb $1,400.0 $1,400.0 Balanced Stage

Bessemer Venture Partners Century Fund II 25-Feb $825.0 $825.0 Balanced Stage

GGV Discovery III, L.P. 28-Jan $610.0 $610.0 Early Stage

DBL Partners IV, L.P. 18-Mar $600.0 $600.0 Later Stage

Versant Venture Capital VIII, L.P. 31-Mar $519.4 $560.2 Early Stage

An LSEG Company 4 Exits First Quarter 2021 | United States Venture Capital Review

U.S. Venture Capital Exit Activity Exits by Sector, Number of Deals

$200 250 10%

$180

$160 200 Computer Software & $140 Hardware Industrial / Energy $120 150 26% 44%

$100 Internet Specific

$80 100 Medical / Health

$60 Other

$40 50

$20 17% 3% $0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 # of Q1 Exits

Time from Investment to Exit Top Announced U.S. Venture Capital-Backed Exits Deal Value Company Name Ann. Date ($US Mil) Sector Exit Type Lucid Motors Inc 22-Feb $11,750.0 Electric Vehicles Reverse Takeover 4% 11% 7% Wework Companies Inc 26-Mar $9,908.3 Workspace Solutions Reverse Takeover

GlobalLogic Inc 31-Mar $9,600.0 Digital Product Development Trade Sale

Under 2 Years Social Finance Inc 7-Jan $6,569.8 Lending & Wealth Management Reverse Takeover

2-4 Years CCC Information Services Inc 3-Feb $6,542.0 Cloud Software Reverse Takeover

5-10 Years Auth0 Inc 3-Mar $6,500.0 Authentication Platform Trade Sale

11 -15 Years Hippo Enterprises Inc 4-Mar $5,522.0 Insurance Technology Reverse Takeover 38% 40% Over 15 Years Joby Aviation Inc 24-Feb $4,557.0 Aerospace Reverse Takeover

Rocket Lab USA Inc 1-Mar $3,952.0 Sattelite Services Reverse Takeover

Sharecare Inc 12-Feb $3,855.0 Healthcare Software Reverse Takeover

Payoneer Inc 2-Mar $3,540.2 Online Payments Reverse Takeover

Bakkt LLC 11-Jan $3,339.1 Financial Technology Reverse Takeover

An LSEG Company 5 United States Venture Capital Criteria First Quarter 2021

Contributors to this analysis are Data collected and analyzed by Refinitiv for this statistical report were drawn from a variety of sources including Refinitiv M&A databases, regulatory filings, press releases, and proprietary reports from U.S. and non-resident venture capital firms, private equity firms, law firms, and other service providers. provided with additional packages of data. If you would The Refinitiv venture capital report measures cash for equity and quasi-equity investments by the professional venture capital community in emerging companies in the United States. like to participate in the submission process, receive The report includes the investment activity of professional venture capital firms, whether U.S.-based or not, including private independent funds, venture arms of corporations, institutions, government funds, angel funds, and similar entities whose primary activity is financial investing. Where there are additional participants such as quarterly press releases, or have angels, corporations, governments, or company officers in a qualified and verified financing round, the entire amount of the round is Included. questions about our full league The report excludes venture debt, buyouts, recapitalizations, secondary purchases, and other forms of private equity that do not involve cash such as services-in-kind. All table criteria please contact: current and previous years data is as of Wednesday, April 21st, 2021. Data is continuously updated and is therefore subject to change. All figures are in U.S. dollars. League Table rankings of top VC investors include only publicly-disclosed investment activity made in United States portfolio companies. Estimated investment activity is UNITED STATES based on the actual syndicate breakdown, where available, and is split equally among disclosed investors where actual breakdowns are not available. Rankings capture the first quarter of 2021. Deals are tracked by their completion date when known, and by their announcement date when their completion date is unknown. Gavin Penny League tables include eligible seed, early stage, later stage, and expansion stages of VC investment. Refinitiv begins tracking rounds at the first investment from a Tel: 416-687-7577 venture capital firm and tracks all subsequent equity financing rounds. Angel, incubator and similar investments are considered pre-venture financing if the company has [email protected] received no prior qualifying venture capital investment and are not included in the report. Deals with undisclosed dollar values are rank eligible but with no corresponding Estimated Investment or Deal value. Non-US dollar denominated transactions are converted to the US dollar equivalent at the time of announcement of terms. Merissa Selts While Refinitiv has used reasonable endeavors to ensure that the information provided in this document is accurate and up to date as at the time of issue, neither Tel: 646-223-8415 Refinitiv nor its third party content providers shall be liable for any errors, inaccuracies or delays in the information, nor for any actions taken in reliance thereon, nor does it endorse any views or opinions of any third party content provider. Refinitiv disclaims all warranties, express or implied, as to the accuracy or completeness of any of the [email protected] content provided, or as to the fitness of the content for any purpose to the extent permitted by law. The content herein is not appropriate for the purposes of making a decision to carry out a transaction or trade and does not provide any form of advice (investment, tax, legal) amounting to investment advice, nor make any recommendations or solicitations regarding particular financial instruments, investments or products, including the buying or selling of securities. Refinitiv has not undertaken any liability or obligation relating to the purchase or sale of securities for or by any person in connection with this document. For further information on Refinitiv’s venture capital and private equity offerings, please visit us at: https://www.refinitiv.com/en/products/eikon-trading-software/private-equity-data/

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