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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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    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.
    Eli Oftedal Headshot
    Eli Oftedal
    |
    Senior Researcher, Market Insights
    Eli is a senior researcher for SVB’s Market Insights, which provides data-driven research and analyses on the innovation economy and venture ecosystem.

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