VCs invested more money in start-ups than ever last year


Hopin’s founder and CEO, Johnny Bufarhat.


Venture capitalists invested more than $ 675 billion in start-ups around the world in 2021 to double the 2020 record high, according to data released Thursday by VC analytics firm Dealroom and UK promotion agency London & Partners. did.

Despite the pandemic, the number of so-called “unicorns” continued to grow in the clip last year, with some 133 startups in the San Francisco Bay Area valuing over $ 1 billion, followed by a rise to 69 in New York. .. 21 in Greater Boston, 20 in London, 16 in Bangalore, 15 in Berlin.

The surge in unicorn numbers was complemented by a number of mega rounds — startup funding rounds in excess of $ 100 million.

These increased dramatically in some cities, with a 3.4-fold increase in London. According to Dealroom, there were 64 mega rounds in London alone last year, up from 19 in 2020. The Fintech app Revolut has raised $ 800 million in a Series E round, and rival Monzo has raised more than $ 600 million in two transactions. Elsewhere, online event platform Hopin raised $ 850 million in two transactions in 2021.

Startups in the UK capital raised $ 25.5 billion from VCs last year, up from $ 11.2 billion in 2020, and now have 75 unicorns in London, most recently mobile banking apps Sterling Bank and Ins. Atec startup Marshmallow has been added.

Laura Citron, CEO of London & Partners, said in a statement that London is now a truly mature global technology center.

“We have a large pool of late funding, almost two new unicorn companies each month, and a large funding round and end,” she said. “This data shows that London is not only a great place for entrepreneurs to start a business, but also a great place to grow them globally.”

London VC company raised $ 9.9 billion in new funding in 2021, It accounts for 35% of all European VC funds. Index Ventures, Balderton Capital and 83North have all closed large new funds and well-known US VC companies such as Lightspeed and General Catalyst have set up offices in the city.

Europe vs. US and China

But London and other European countries have yet to create tech companies of their size. alphabet, Apple, Amazon, Meta also Microsoft In the United States or Alibaba When Tencent In China.

Europe’s largest technology company by market capitalization Chip maker ASML, This is worth over $ 300 billion. Meanwhile, in the United States, some companies are worth more than $ 1 trillion, Apple confirmed that market capitalization temporarily rose to over $ 3 trillion Early this month. In fact, US and Asian tech giants have acquired many of Europe’s most promising companies, including artificial intelligence lab DeepMind and chip designer Arm.

Venture capitalists invested $ 328.8 billion in US start-ups and $ 61.8 billion in Chinese start-ups in 2021, but invested only $ 39.8 billion. of British start-up. However, VC investment in the UK and Europe is growing faster than in the US and China.

Some of London’s most famous start-ups, including food delivery companies Deliveroo And cybersecurity startups DarktracePublished on the London Stock Exchange in 2021. However, we received various welcomes from investors. Spotify Still choose to list in New York.

Nazim Salur, co-founder and CEO of Getir, a rapid grocery delivery app, told CNBC in December that Europe isn’t dealing with tech companies like the United States.

“Too much skepticism [in Europe]”This is due to investors and policy makers, he added. Now worth $ 7.5 billion, If published, will most likely be listed in the United States. It is discussing with investors about a new round of private funding that will be worth more than $ 12 billion, According to Bloomberg..

Europe has a “very strong economy overall” and is a strong player in the automotive manufacturing, pharmaceutical, fashion and other industries, but not so strong when it comes to start-ups, Salur said.

“There are some great start-ups, but if you look at the huge amount of unicorn lists, for example, about 800, half from the US, one-third from China, the rest all from the rest of the world. It’s a region. Unfortunately, Europe isn’t exactly what it should be. “

VCs invested more money in start-ups than ever last year

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The post VCs invested more money in start-ups than ever last year appeared first on Eminetra.


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