The primary quarter of 2021 marked a record-setting time for startup funding, with traders pumping $72.7 billion into North American tech startups’ growth-stage rounds. As Crunchbase reported on Thursday (April 8), that complete is the very best within the historical past of the dataset. Q1 funding was near double the full from a yr in the past, with investments rising 57 % from the earlier quarter.
“Funding totals had been juiced by huge particular person rounds for warm unicorns,” famous the report. “There have been 194 rounds of $100 million or extra in Q1, per Crunchbase information. Whereas rounds of that measurement had been as soon as uncommon, it’s now routine to see a number of in a single day. Buyers additionally scored some massive exits, topped by public choices for gaming platform Roblox and point-of-sale lender Affirm.”
Among the many hottest tendencies within the first quarter was late-stage funding, with traders pumping $51 billion into North American late-stage and know-how progress offers, the very best quarterly complete within the historical past of Crunchbase’s dataset. It was additionally an excellent quarter for early-stage funding, with a projected $19.7 billion going to Sequence A and B offers within the first quarter, a 56 % enhance from the earlier yr and a 36 % leap from 2020’s This fall.
The variety of spherical counts was additionally on the rise: 432 reported offers, essentially the most since 2019. “Common spherical measurement rose as effectively, totaling $122 million,” said the report, though many offers had been for a lot bigger figures, together with Robinhood’s $2.four billion pre-IPO spherical.
After all, no dialogue of Q1 is full with out mentioning particular function acquisition corporations, or SPACs. The method entails elevating money by an preliminary public providing (IPO). From there, the shell firm, which has no precise operations, goes looking for an organization or corporations to purchase. Using these corporations boomed in 2020, and so they’re poised to be even larger in 2021, based mostly on first-quarter exercise. Within the first 10 weeks of 2021, SPACs raised greater than the $83.four billion they took in throughout all of 2020.