State of the Markets Report Q4 2021
Key takeaways
01
Liquidity of private markets remains strong this year
2021 was another record year with 52 US VC-backed tech IPOs and an anticipated 1,288 US VC-backed M&A deals. Conversely, de-SPAC activity has slowed down from Q1’s frenzy with 455 SPACs in Q3 searching for targets.
02
Facing the headwinds: Inflation increases
Supply chain problems exacerbated by US port congestion along with an increased money supply and a weakened US dollar has resulted in the largest rise of inflation since September 2008.
03
A new approach to venture capital
Led by Tiger Global, hybrid private equity/venture capital investors willing to pay unprecedented valuations to get the “best” companies are deploying capital faster, disrupting the traditional venture model resulting in an expected 141% increase in the number of deals over $100 million.
Sector growth and profitability
With record VC investment and pandemic-induced uncertainty winding down, spending has increased and profitability has declined as fast-growing companies are able to amass ample capital at sky-high valuations to continue to fuel their growth.
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