2021 was a banner year for the global VC market, with record high highs for total investment and the value and number of VC deals, global CVC investment and the number of CVC deals, the number of exits and total exit value, and global fundraising value. Despite the Omicron variant of COVID-19 leading to new rounds of travel challenges and local restrictions in the second half of the year, VC investment in Q4’21 remained high, propelled by robust investment across the Americas and Europe. While total VC investment in Asia dropped from the record high achieved in Q3’21, it remained relatively robust compared to historical trends.
Heading into 2022, VC investment globally is expected to remain high given the wealth of dry powder available in the market, the continued involvement of non-traditional investors, and the ongoing evolution of VC markets in less developed jurisdictions, including South America and Africa. While IPO activity is expected to slowdown from the frenetic pace seen in 2021 as more companies take the time needed to set themselves up for post-IPO success, the IPO market in general is expected to remain robust in addition to M&A activity.
In this quarter’s edition of Venture Pulse, we share highlights of both annual and Q4’21 VC market results, in addition to discussing a number of global and regional trends, including:
- The increasing prioritization of IPO readiness over speed
- The growing focus on talent and HR-focused solutions
- The enhanced focus on hybrid models of work
- The industries likely to see consolidation, including fintech and food delivery