(Teleborsa) – The sector of global venture capital (VC) reached unprecedented levels in 2021, with the second quarter of the year recording investments of $ 157.1 billion. Europe ($ 34 billion), the United States ($ 75 billion) and the entire region of the Americas ($ 84 billion) hit new highs for VC funding volumes, while Asia ($ 38 billion) dollars) remained well below the peak of the third quarter of 2019. These are the data contained in the latest “CIO Special” Report of Deutsche Bank dedicated to venture capital, or the contribution of risk capital to finance the start-up or growth of a company.
“This impressive growth was mainly driven by a growing number of mature and “unicorn” societies already existing (companies with a valuation of more than $ 1 billion) that require substantial amounts, in various sectors / industries ”, underlines Christian Nolting, Global Chief Investment Officer of the private bank and head of the report.
An interesting trend is that, over the past four quarters, global VC investments have grown year-on-year, despite fewer deals. This may reflect “a growing preference for proven business models and late-stage agreements in most regions of the world, because during periods of high uncertainty, companies at an advanced stage can be considered safer bets ”. The risk – the report highlights – is that the decline in early-stage VC funding could have a negative long-term impact for the entire industry pipeline.
In the first half of 2021, most of the funds went into sectors that benefited from the pandemic, such as gaming, fintech, edtech, logistics and food delivery, healthcare and biotechnology. “But this is not just a short-term answer – observes Nolting – the sectoral breakdown of global venture capital funding since 2013 shows that software, pharmaceuticals and biotechnology, services and health systems have increased their share of total investment”.
The report’s conclusions show that in the medium term “the general context is likely to remain favorable to further growth in the venture capital market, as there is a lot of “dry powder” on the market (deadline for funds committed but not yet allocated) and competition for the best offers should support the valuations ”. Even the persistence of a context of low interest rates in many parts of the world it will maintain investor interest in the VC.
Also reported a increase in the weight of the SPACs in the final phase of investment in venture capital, that is, the one in which companies can land on the stock exchange. SPACs (Special Purpose Acquisition Companies) represent an alternative to the traditional initial public offering (IPO) method. “There are a number of legitimate concerns with the SPAC approach, for example with regard to the fact that it will encourage companies to arrive on the stock market before they have reached the necessary maturity ”, is highlighted.