Global VC investment skyrockets to $157.1 billion in Q2’21, according KPMG Private Enterprise Venture Pulse report

10 $1 billion+ VC rounds across 8 countries account for $16 billion in investment.

Global VC investment reached a new high in Q2’21, with $157.1 billion raised across 7,687 deals. A robust IPO market, high valuations, and a seemingly endless supply of dry powder helped fuel the ongoing increase, according to the Q2’21 edition of Venture Pulse - a quarterly report published by KPMG Private Enterprise on VC trends globally and in key jurisdictions around the world.

The incredible level of VC investment was buoyed by ten $1 billion+ funding rounds across 8 countries including Sweden-based Northvolt ($2.75 billion) and US-based Waymo ($2.5 billion).

The Americas attracted a record $84.1 billion in investment during Q2’21, with the US accounting for $75.8 billion of this total. In Europe, VC investment continued its strong climb, reaching $34 billion in its sixth straight record quarter. VC investment in the Asia-Pacific dipped quarter-over-quarter to $38 billion but remained robust compared to historical norms.

While globally fintech was the most attractive sector of investment, health, biotech, edtech, gaming and food delivery continued to see significant investment activity.

Diversity was really the defining characteristic of the VC market globally in Q2’21 – from the countries where deals occurred to the different sectors that attracted investment. We even saw an increase in the percentage of funding coming from other types of investors making VC investments – including corporates and family offices. This diversity will likely keep VC investment quite strong heading into Q3’21, with fintech likely to be a hot area of investment across all regions of the world.

Conor Moore

Head of KPMG Private Enterprise in the Americas region, and Partner

KPMG in the U.S.

Globally, some countries are beginning to emerge into the post-pandemic world. Even as they do, there will be trends, both in the B2C and B2B spaces, that will stick - from people getting their groceries delivered to businesses recognizing the importance of optimizing their digital transformation. These areas will likely continue to attract VC investment in Q3’21 and beyond – and that in turn can spark new waves of investment in areas like cybersecurity and fraud protection.

Kevin Smith

Head of KPMG Private Enterprise in EMA, and Partner

KPMG in the UK

Key Highlights – Q2’21

Global VC investment rose from $147.2 billion across 8,557 deals in Q1’21 to $157.1 billion across 7,687 deals in Q2’21.
VC investment in the Americas was very strong in H1’21, with $84.9 billion invested across 3,660 deals surpassing the previous record of $80 billion set in the previous quarter. The US accounted for $75.8 billion of this investment and 3,297 deals.
VC investment in Europe reached $34 billion across 1,848 deals in Q2’21 – up from $23.9 billion across 2,150 deals in Q1’21.
The Asia-Pacific region saw solid VC investment in H1’21, despite a dip from $42.8 billion across 2,066 deals in Q1’21 to $38 billion across 1,998 deals in Q2’21, with a record $7.8 billion in India.
Corporate investment was very robust in Q2’21 – accounting for $73.9 billion in investment across 1,70 deals.
At mid-year, global median deal size was up across all deal stages, including medians of $2 million for Seed stage, $10 million for Series A, $25 million for Series B, $53 million for Series C, and $105 million for Series D+ deals.
VC-backed exit value reached $221 billion in Q2’21 – second only to the record $314 billion seen in Q1’21.
First time financings in first half of the year totalled $20.1 billion – well on track to exceed the peak high of $32 billion seen in 2018.

For more information, contact

Melany Eli
KPMG Private Enterprise
+1 416 399 6179
melanyeli@kpmg.ca

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