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United States Venture Capital Review United States Venture Capital Review FIRST HALF 2021 An LSEG Company United States Venture Capital First Half 2021 | United States Venture Capital Review United States Venture Capital Deals Intelligence Venture Capital Investment Activity in U.S. Companies $140 3,500 UNITED STATES VC INVESTMENT REACHES $123.2 BILLION United States venture capital investments reached a record high of $123.2 billion from 3,100 deals in the first half, an explosive rate of growth. For the second quarter in a row, this set an all-time high in terms of $120 3,000 disbursements in any quarter in United States history. Indeed, of the top six quarters ever recorded in terms of dollars invested, five have occurred since Q1 2020, while of the top 25 states all of them $100 2,500 received more capital invested in the first half of 2021 than in the same period last year. The average venture capital round size in the first half also reached $40 million for the first time in history. $80 2,000 While the 1,585 venture capital deals recorded in the second quarter was not itself an all-time high, it did represent the most deals completed since any quarter in 2000, when 2,202 deals were completed in Q2 $60 1,500 2000, and round sizes were only $13.0 million on average. $40 1,000 SEVEN VENTURE INVESTMENTS OVER $1 BILLION COMPLETED While four venture-stage investments $1 billion or greater, totaling $8.4 billion, were completed in all of 2020, in the first half of 2021 alone there were seven such investments recorded totaling $13.7 billion. $20 500 They included Robinhood Markets, Rivian Automotive, Waymo, Cruise Automation, GoBrands, Databricks, and Epic Games. Among top investors in United States companies in the first half, those $0 0 completing more than 50 rounds apiece included Andreessen Horowitz, Tiger Global, Y Combinator, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sequoia Capital, Insight Venture Partners, General Catalyst Partners, and Accel Partners. Q1 Q2 Q3 Q4 # of H1 Deals In the first half, information technology companies secured $86.2 billion, while life sciences companies completed rounds totaling $21.9 billion, while other traditional sector companies accounted for the balance. Venture Capital Deal Volumes by Sector - H1 2021 100% UNITED STATES VENTURE CAPITAL FUNDRAISING REACHES NEW HIGH 90% Venture capital fundraising in the United States in the first half also set new historical records, with $64.2 billion raised in 472 funds. This left Q1 2021 and Q2 2021 as the two strongest quarters of fundraising 80% activity on record, edging out the third best quarter for VC fundraising, Q2 2000. A total of 236 funds closed in each quarter, thus tying Q1 and Q2 2021 as the two best quarters in fundraising history in 70% terms of the number of fund closings. Before this year, the last quarter in which more than 200 United States venture funds held a closing was in the fourth quarter of 2000. Thirteen funds held closings of $1 60% billion or greater in the first half of 2021. 50% UNITED STATES VENTURE CAPITAL-BACKED EXITS STAY STRONG 40% United States venture backed exits totaled $78.1 billion in the first half, in 442 deals. While 2021 may not 30% yet have seen a record-breaking quarter, it did nonetheless represent the most exits ever completed in a first half, and Q2 exit values grew 2% from the quarter prior. The quarter saw five exits over $7 billion, as 20% reverse takeovers became a more prevalent exit technique. 10% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 Information Technology Life Sciences Non-High-Tech An LSEG Company Investments First Half 2021 | United States Venture Capital Review Top Venture Capital Deals in U.S. Companies Top Venture Capital Deals by U.S. Firms Investing in Non-U.S. Companies Deal Value Deal Value Company Name Deal Date (US$mil) Sector State Company Name Deal Date (US$mil) Sector Nation Robinhood Markets Inc 1-Feb $3,400 Investment Software California Northvolt AB 20-May $2,739.9 Batteries Sweden Rivian Automotive LLC 18-Jan $2,650 Electric Vehicles California Celonis SE 2-Jun $1,000.0 Enterprise Software Germany Waymo LLC 16-Jun $2,500 Self-Driving Vehicles California Klarna Bank AB 1-Mar $1,000.0 Payment Solutions Sweden Cruise Automation Inc 19-Jan $2,000 Self-Driving Vehicles Michigan Trade Republic Bank GmbH 20-May $904.0 Mobile Broker Germany GoBrands Inc 23-Mar $1,150 Delivery Service Pennsylvania Yisheng Biopharma Co Ltd 24-Feb $839.2 Vaccine Development China Databricks Inc 1-Feb $1,000 Data Engineering California Bundl Technologies Pvt Ltd 5-Apr $800.0 Food Delivery India Epic Games Inc 13-Apr $1,000 Video Games North Carolina Mollie BV 22-Jun $793.9 Payment Solutions Netherlands Space Exploration 23-Feb $850 Spacecraft California Beijng Shihui Technology Co Ltd 9-Mar $755.4 Food Logistics China Technologies Corp Whele LLC 11-May $775 E-Commerce Massachusetts Nu Pagamentos SA 8-Jun $750.0 Payment Solutions Brazil Shanghai Yibaimi Network Technology Co Thrasio LLC 11-Feb $759 E-Commerce Massachusetts 6-Apr $700.0Food Delivery China Ltd Shenzhen Qianhai 4Paradigm Data UiPath Inc 2-Feb $750 Automation Platforms New York 22-Jan $700.0 Data Modeling China Technology Co Ltd SambaNova Systems Inc 13-Apr $676 Machine Learning California FlixMobility GmbH 28-May $650.0 Bus Operations Germany Venture Capital Investments by State 01/01/2021 - 6/30/2021 01/01/2020 - 06/30/2020 YoY % YoY % State Value ($mil) # of Deals Value ($mil) # of Deals Chg. ($) Chg. (#) Deal Size Composition of Investments, H1 2021 California $62,686.9 1,342 $31,893.8 1,035 97% ▲ 30% ▲ New York $18,298.7 517 $6,393.6 336 186% ▲ 54% ▲ Massachusetts $14,482.9 275 $6,017.2 228 141% ▲ 21% ▲ 10% 9% Texas $3,195.7 141 $1,556.7 112 105% ▲ 26% ▲ Washington $2,728.7 116 $1,744.0 85 56% ▲▲36% 4% 11% Colorado $2,662.4 96 $560.0 58 375% ▲ 66% ▲ Michigan $2,621.8 25 $149.3 16 1656%▲▲ 56% 7% Pennsylvania $2,504.2 76 $687.4 61 264% ▲ 25% ▲ ≥ $1 bil Illinois $2,472.2 75 $782.3 67 216% ▲ 12% ▲ New Jersey $1,871.0 35 $957.7 34 95% ▲ 3% ▲ $500mil > $1 bil North Carolina $1,770.151 $588.1 40 201% ▲ 28% ▲ 36% $100 mil > $500 mil Georgia $1,550.2 42 $668.2 39 132% ▲ 8% ▲ Florida $1,145.4 66 $738.7 39 55% ▲ 69% ▲ $10 mil > $100 mil Utah $1,107.3 40 $474.4 34 133% ▲ 18% ▲ Under $10 mil Maryland $1,041.2 39 $526.0 40 98% ▲ -3% ▼ 39% Virginia $995.3 54 $531.3 45 87% ▲ 20% ▲ Undisclosed 42% Connecticut $826.7 49 $348.9 46 137% ▲ 7% ▲ Ohio $722.0 29 $297.3 41 143%▲ -29% ▼ 42% Oregon $574.2 33 $231.4 23 148% ▲ 43% ▲ Delaware $479.8 28 $14.9 13 3121% ▲ 115% ▲ Vermont $435.1 6 $23.6 6 1744% ▲ 0% - Wisconsin $428.9 13 $36.3 14 1081% ▲ -7% ▼ D. of Columbia $400.0 22 $241.6 10 66% ▲ 120% ▲ Outer Ring: # Deals Missouri $373.7 18 $142.724 162% ▲ -25% ▼ Inner Ring: $ Proceeds Tennessee $336.9 20 $96.0 13 251% ▲ 54% ▲ An LSEG Company Investments First Half 2021 | United States Venture Capital Review Top Investors in San Francisco Bay Area Companies Top Investors in New York City Area Companies Firm Name Rank # of Deals Estimated Investment (US$mil) Firm Name Rank # of Deals Estimated Investment (US$mil) Andreessen Horowitz LLC 1 46 $1,307.2 Gaingels LLC 1 22 $104.2 Y Combinator Inc 2 41 $334.1 Andreessen Horowitz LLC 2 21 $232.2 Tiger Global3 40 $1,316.4 Connecticut Innovations Inc 3 20 $9.6 Sequoia Capital Operations LLC 436 $1,107.0 Tiger Global 4 17 $504.3 Accel Partners & Co Inc 5 30 $369.8 Deer Management Co LLC 5 15 $199.6 Insight Venture Partners LLC 6 26 $680.4 Greycroft Partners LLC 6 15 $153.5 Coatue Management L L C 7 25 $803.5 General Catalyst Partners LLC 7 14 $146.7 General Catalyst Partners LLC 824 $389.5 Box Group LLC 8 12 $104.5 Lightspeed Management Company LLC 9 23 $297.9 High Peaks Venture Partners, LLC 9 12 $58.4 Menlo Ventures 10 22 $277.0 Google Ventures 10 11 $169.6 Kleiner Perkins Caufield & Byers LLC 11 21 $192.1 Coatue Management L L C 11 10 $248.1 Index Ventures (UK) LLP 12 20 $689.9 Insight Venture Partners LLC 12 10 $171.3 TOTAL 964 $47,716.9 TOTAL 566 $20,516.4 Top Investors in U.S. Seed & Early Stage Companies Top U.S. Investors in Non-U.S. Companies Firm Name Rank # of Deals Estimated Investment (US$mil) Firm Name Rank # of Deals Estimated Investment (US$mil) Y Combinator Inc 1 47 $185.5 Sequoia Capital Operations LLC 1 109 $1,525.3 Andreessen Horowitz LLC 246 $537.6 Tiger Global 256 $1,541.9 Ra Capital Management LP 3 33 $371.3 Accel Partners & Co Inc 3 49 $758.4 General Catalyst Partners LLC 4 31 $233.5 GGV Capital 447 $690.9 Google Ventures 528 $343.6 Insight Venture Partners LLC 5 38 $867.3 Logos Capital Management LLC 624 $240.2 Y Combinator Inc 631 $132.3 Lightspeed Management Company LLC 7 24 $106.9 Coatue Management L L C 7 26 $622.5 Henderson Global Investors Ltd 8 23 $233.7 Lightspeed Management Company LLC 8 23 $388.1 Alexandria Venture Investments 9 22 $202.4 FJ Labs LLC 9 23 $107.8 Gaingels LLC 10 22 $52.5 Bluerun Ventures LP 10 23 $53.6 Sequoia Capital Operations LLC 11 21 $138.9 OrbiMed Advisors LLC 11 19 $581.1 Accel Partners & Co Inc 12 21 $136.1 Better Capital+Labs 12 19 $11.5 TOTAL 1,825 $39,967.6 TOTAL 1,501 $34,500.4 Top Investors in U.S.
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