This explosion of investing activity is supported by what is sure to be a record year for exits — at $372 billion, the exit value through the first six months has already surpassed 2020’s record of $287 billion.
First financings of startups in 2021 may approach 2019’s record of nearly 3,500 but has fallen to just 25 percent of all deals (from 40 percent 10 years ago).
Angel and seed activity has fallen by more than 10 percentage points since 2015 to just 39 percent of all deals, while later-stage VC has risen to 31 percent of deals. Meanwhile, the nature of angel and seed deals continue to change, as 15 percent of these investments in 2021 were rounds of more than $5 million, which is four times more than the rate 10 years ago.On the whole, more companies at all stages of development are being funded than in the past. However, 2021 is continuing a market shift in the share of activity from earlier to later stages. Absent a near-term reinvestment in new companies, therefore, startups that survive their first funding rounds may soon find themselves in an ideal position for founders: a market with an abundance of capital and relatively few competitors.