(Reuters) – Venture-backed companies in the U.S. raised nearly $ 130 billion last year, setting a record despite the COVID-19 pandemic, figures from data firm CB Insight released on Friday.
While total investments increased by 14% from In 2019, the number of deals dropped 9% to 6,022. And even so-called mega-rounds, deals that are $ 100 million or higher hit a record number with $ 63 billion raised in 318 deals.
“What we are seeing is a ‘rich get richer’ phenomenon in which successful, high-momentum tech companies are sucking in the bulk of the funding,” CB Insights CEO Anand Sanwal told Reuters via e-mail. mail.
He said the data showed a steep drop in an early investment phase called the seed phase, and he expected some of those companies that stand out to see “insatiable investor demand” with fewer competitors for the money.
The big investment trend doesn’t seem to slow down in 2021 as there are many capitals looking for investment, some venture capitalists say.
On Thursday Quantum Metric, a startup that provides customer analytics and improvement tools for online businesses, said it raised $ 200 million in its latest funding round, which estimates the company at over $ 1 billion.
In 2020, many of the mega rounds were organized by tech companies that got a boost from COVID-19, which promoted remote working and e-commerce.
“Capital tends to follow categories that have many legs. And I think right now you are seeing a lot of conviction behind categories and companies that are riding indubitable trends, “said Arun Mathew, partner of Silicon Valley venture capital firm Accel, an early investor in Facebook.
“I think it’s pretty safe to say that 2021 will be a bumper year for many tech companies,” said Mathew.
Editing by Jacqueline Wong