Insight

Venture Pulse Q3 2020

The Q3’20 Venture Pulse report reveals new insights around trends, opportunities, and challenges facing the venture capital (VC) market in the U.S.

Conor Moore

Conor Moore

Partner, National Leader, KPMG Private Enterprise, KPMG US

+1 415-335-8401


 

VC investment in the U.S. remained buoyant in Q3’20, despite ongoing concerns related to COVID-19, geopolitical tensions, and the upcoming U.S. presidential election. The $1.9 billion raise by SpaceX led the quarter, and the acceleration of digital trends helped spur VC investment, particularly in areas such as healthcare, business services, and edtech.

VC investment is expected to hold steady heading into Q4’20, although early-stage companies will likely continue to struggle for funding as investors remain focused on later stage deals. Investor interest in business productivity solutions, health and biotech, fintech, and edtech will likely remain very high.

Venture Pulse Q3 2020
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The expectation is almost always there for startups to have a liquidity event within 10 years. So, for aging unicorns, there is a ton of pressure internally to create a liquidity event for early stakeholders. This is likely why you’re seeing a lot of unicorns making exit plans, whether through traditional IPO exits, direct listings, or by using SPACs.
Conor Moore, National Leader, KPMG Private Enterprise, KPMG LLP

In the US in Q3'20

VC-backed companies raised $37.8B across 2,285 deals.

Median series D deal size hits $60M

VC floods into healthcare with $32.1B invested

Exit value bounces back to $103.9B


Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/20/20. Data provided by PitchBook, 10/21/2020.


For insights into global VC investments, click here.

About the Pulse Series

The Pulse Series of reports—Venture Pulse and the Pulse of Fintech—analyze the latest global and regional investment trends and insights. Included in the reports we provide perspectives and analyses on the lifecycle of venture capital investments as well as overall fintech investment across the Americas, Europe, and Asia. In each report, we share the latest valuations, financing, deal sizes, mergers & acquisitions, exits, corporate investment, and industry trends.

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