Venture capital-backed companies in the United States raised nearly $130 billion last year, setting a record despite the COVID-19 pandemic, figures from data firm CB Insight released on Friday show.
While the investment total is up 14% from 2019, the number of deals is down 9% to 6,022. And so-called mega-rounds, deals that are $100 million or higher also hit a record amount and number with $63 billion raised in 318 deals.
“What we’re seeing is a ‘rich get richer’ phenomenon where successful, high momentum technology companies are vacuuming up most of the financing,” CB Insights chief executive Anand Sanwal told Reuters by email.
He said that information indicated a major drop in a beginning phase speculation called seed stage, and expected a portion of those organizations that stand apart to see “voracious financial specialist interest” with less contenders for the cash.
The pattern of enormous speculations doesn’t seem as though it will slow in 2021 as there is a ton of capital pursuing ventures, state some investors.
Effectively on Thursday Quantum Metric, a startup that gives client examination and improvement instruments for online organizations, said it brought $200 million up in its most recent financing round, which esteems the firm at more than $1 billion.
In 2020, a considerable lot of the super adjusts were raised by tech organizations that got a lift from COVID-19, which drove up distant work and web based business.
“Capital tends to follow categories that have a lot of legs. And I think right now you’re seeing a lot of conviction behind categories and companies that are riding un-doubtable trends,” said Arun Mathew a partner at Silicon Valley venture capital firm Accel, an early investor in Facebook.
“I think it’s pretty safe to say 2021 is going to be a banner year for many tech companies,” Mathew said.
With the last year changing how (and where) many of us work, organizations have started to…