State of the Markets Report Q1 2021
Key takeaways
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.
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.
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.
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.
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.
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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