VC investment in the US stayed robust in Q4’20, helping drive total annual VC investment to a new record high of $156.2 billion in 2020, compared to $138 billion last year. While the US faced a number of uncertainties during the quarter, including the presidential election in November, a seemingly endless supply of cash on the sidelines and an ample exit market helped to keep confidence in the VC market relatively robust through the end of the year.
During Q4’20, VC investment in the US remained focused on key sectors relevant in the current pandemic environment, including fintech, health and biotech, and transportation. These sectors accounted for many of the quarter’s largest funding rounds, including Resilience ($725 million), Robinhood ($668 million), Chime ($533 million), Nuro ($500 million), Tempus Labs ($450 million), and Hippo Insurance ($350 million).
If you’d have asked me back in March or April, when the world shut down, if the VC market would be this strong, I would’ve said no. But based on what we saw in Q2 and Q3, the continued strength of the VC market is no longer a huge surprise. And I think the market is only going to get better in light of the exits that we’ve seen recently—both the IPOs and the M&As, based on this the outlook for 2021 is positive.
— Conor Moore, National Leader, KPMG Private Enterprise
In the US in Q4'20
VC remains robust with over $38.8 billion invested across 2,526 deals
Median pre-money for series D+ rises to $455 million in 2020
Pharma and biotech reach new high
Exit activity spikes for second consecutive quarter
Source: Venture Pulse, Q4’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 1/20/2021.
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.
