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.