Despite Pandemic, Venture Capital Didn't Slow Down in 2020
According to data from PitchBook and the National Venture Capital Association, startups in the US received $156.2 billion in funding last year. This amount broken down into days is around $428 million per day. In 2018 and 2019, Venture Capitalists invested around $140 billion in American startups. The market for new businesses has grown dramatically over the past decade as individuals look to innovate and utilize data.
Startups were also able to generate a historic amount of liquidity, some $290.1 billion. These numbers are surprising to most due to the COVID-19 outbreak that decimated the global economy in early 2020 and put millions out of work.
Surprisingly, the number of VC deals fell from its 2019 high. Essentially, this means that larger funding rounds were organized with less startups receiving capital.
So far in 2021, startups are doing well. It will be interesting to see if this trend can continue through the year as we embark on the largest vaccine and economic reopening campaign in modern history.