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    State of the Markets Report Q1 2021

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    Key takeaways

     
    The innovation economy ends a turbulent yet record-setting year.

    01

    Global VC assets reach new heights of $1.3T AUM

    VC fundraising and investment buoyed by sustained interest from limited partners sets new records.

    02

    Concentration increases in perceived market leaders

    The Pandemic saw attention pivot to known quantities - firms with larger funds and companies with higher valuations.

    03

    Europe continues to mature

    Record late-stage activity mints $25B worth of new European unicorns.

    Report Highlights

     

    Hockey Stick Growth (For VC)

     

    Strong fundraising dynamics pushed dry powder to unprecedented levels — contributing to a record high in global VC assets under management (AUM), which topped $1.3T in June 2020.

    State-of-the-Markets-Q1-2021---graphs-01-484x306.png

    You Spin Me Round (Like A Record)

     

    Despite record liquidity for Unicorns last year, there remains over $725B of unrealized Unicorn value in the United States alone.

    State-of-the-Markets-Q1-2021---graphs-02-484x306.png

           3 As of 12/31/2020

    Keep Your Eye on the Dollar

     

    For 2021 and beyond, it’s worth asking, how will another double-digit rise in foreign currencies impact FP&A and business-performance metrics? SVB’s proprietary data shows that adverse FX moves can have a material negative impact on financial metrics.

    State-of-the-Markets-Q1-2021---graphs-03-484x306.png

           2 Illustrative purposes only: logos represent 2020 US VC-backed SaaS IPOs

    No Turning SPAC Now

     

    The current SPAC mania faces a looming cliff, as most SPACs only have 24 months to find a target. In 2021, only three SPACs totaling less than $1B must DE-SPAC, but in 2022, 94 SPACs totaling more than $32B must DE-SPAC or return their capital.

    State-of-the-Markets-Q1-2021---graphs-04-484x306.png

           1 For SPACs searching for a target

    European Tech Reaching Record Highs

     

    European venture is thriving. More capital is coming into the ecosystem than ever before, as investors target late-stage companies minting Unicorns at an unprecedented rate.


           3 As of 12/31/2020

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    Written and researched by SVB experts

     

    Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.

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    Bob Blee Headshot
    Bob Blee
    |
    Head of Corporate Banking
    Bob Blee heads SVB’s Corporate Banking division, which leads the bank’s relationships with public and late stage private companies in the U.S. Tech Sector.
    Andrew Pardo Headshot
    Andrew Pardo
    |
    Sr. Associate, Research
    Andrew Pardo is a senior research associate responsible for conducting data-driven analyses on the innovation economy that SVB serves.
    Calvin Otis Headshot
    Calvin Otis
    |
    Sr. Associate, Research
    Calvin Otis is a senior research associate responsible for conducting data-driven analyses on the innovation economy that SVB serves.
    Eli Oftedal Headshot
    Eli Oftedal
    |
    Sr. Associate, Research
    Eli Oftedal is senior research associate responsible for conducting data-driven analyses on the innovation economy that SVB serves.
     
     
     

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