Upload
others
View
29
Download
0
Embed Size (px)
Citation preview
Venture PulseQ2 2021Global analysis of venture funding
21 July 2021
2
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Welcome to the Q2’21 edition of Venture Pulse, KPMG Private
Enterprise’s quarterly report highlighting the major trends,
opportunities, and challenges facing the venture capital market
globally and in key regions around the world.
Global VC investment soared to a new high in Q2’21, as
investors continued to prioritize larger and later stage deals.
High valuations, a robust IPO market, and a hearty supply of
dry powder also helped fuel investment across numerous
jurisdictions. In the Americas and Europe, VC investment
reached near-record highs, while Asia attracted its second-
highest level of VC investment since Q3’19.
The quarter saw 10 deals over $1 billion, led by a $2.75 billion
raise by Northvolt AB in Switzerland, and a $2.5 billion raise
by US-based Waymo. While fintech was the most attractive
sector of investment in all regions of the world, health and
biotech continued to see significant investment activity, in
addition to areas such as edtech, gaming and food delivery.
Exit activity continued to be robust, with interest in IPOs
stretching well outside of the US. In Q2’21, companies
including Monday.com (Israel), Oatly (Sweden), Darktrace
(UK) held IPOs. While interest in SPACs slowed somewhat in
the US, it grew in other regions. The SPACs that have been
created, however, will need to find targets, which will be a key
activity to watch over the remainder of the year.
With a significant amount of cash looking for investments, the
VC market is expected to remain very robust heading into
Q3’21. VC investors will likely focus on many of the sectors
expected to remain attractive as the world emerges from the
pandemic, including B2B business productivity, fintech, and
delivery.
In this quarter’s edition of Venture Pulse, we look at these and
a number of other global and regional trends, including:
─ The explosion of unicorn births compared to previous years
─ The major focus on fintech investment across all regions
─ The ongoing interest in health and biotech as the world
emerges from the pandemic
─ The increasing participation of non-traditional VC investors
We hope you find this edition of Venture Pulse insightful. If you
would like to discuss any of the results in more detail, please
contact a KPMG adviser in your area.
You know KPMG, you might not know
KPMG Private Enterprise.
KPMG Private Enterprise advisers in KPMG firms
around the world are dedicated to working with
you and your business, no matter where you are
in your growth journey — whether you’re looking
to reach new heights, embrace technology, plan
for an exit, or manage the transition of wealth or
your business to the next generation.
Kevin SmithHead of KPMG Private Enterprise
in EMA, Global Co-Leader — Emerging Giants,
KPMG Private Enterprise
Partner, KPMG in the UK
Welcome message
Throughout this document, “we”, “KPMG”, "KPMG Private Enterprise", “us” and “our” refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of
which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG
International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Unless otherwise noted, all currencies reflected throughout this
document are US Dollar.
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. The KPMG name and logo are trademarks used under license by
the independent member firms of the KPMG global organization.
Conor MooreHead of KPMG Private Enterprise in the
Americas, Global Co-Leader —
Emerging Giants,
KPMG Private Enterprise
Partner, KPMG in the US
Jonathan LavenderGlobal Head,
KPMG Private Enterprise
2
# Q2VC
3
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Contents
─ New quarterly record in Europe — with over $34 billion invested on 1848 deals
─ Corporate venture capital drive record surge — reaching $16.5 billion invested
─ Exits remain strong for second consecutive quarter
─ UK, Germany, France, Nordics and Israel all hit new investment highs
─ Germany dominates with 4 of the top 10 deals
Europe
Global─ VC investment hits new record
high — reaching $157.1 billion
─ Global median deal size for D+
jumps to $105 million in 2021
─ Corporates on pace for biggest
year ever
─ Unicorn rounds spike for
second consecutive quarter
─ First half fundraising
approaches 2020 annual totals
─ Top 10 deals globally spread
across 8 different countries
34
US─ VC hits record $75 billion invested
across 3296 deals
─ Median deal size for Series D+ leaps
past $100 million
─ Corporate participation surpasses
$30 billion for second consecutive
quarter
─ Red-hot IPO market continues to
achieve new highs
─ Experienced managers continue to
dominate fundraising efforts
47 71Asia─ Venture Capital investment
robust — with $38 billion
across 1998 deals
─ Early-stage deals start to
heat up
─ Venture backed exit activity
returns to historic norms
following record Q1
─ India sees surge to almost
$8 billion invested — a new
record
─ Decline in mega-deals
belies ongoing health of
Chinese VC
─ Top 10 deals spread
amongst Indonesia, India,
China, Singapore and
South Korea
Americas─ New record high of $84.1 billion
invested across 3659 deals
─ Series A sees surge in deal
value
─ Median pre-money valuation
for Series D+ reaches $1 billion
in H1’21
─ Canada blasts to new record,
powered by 19 mega rounds
─ Brazil sees over $2.5 billion
invested with mega deals
including Nubank
04 19
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
Globally, in Q2’21 VC-backed companies raised
$157.1B across 7,687 deals
Global US | Americas | Europe | Asia
4
# Q2VC
5
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Americas, Europe and Asia all attract mega funding rounds in Q2’21
A growing number of jurisdictions across regions attracted mega VC funding rounds in
Q2’21, including the US (Waymo — $2.5 billion, SpaceX — $1.2 billion, Epic Games — $1
billion), Indonesia (J&T Express — $2 billion), India (BYJU — $1.5 billion), China (Horizon
Robotics — $1.5 billion), Germany (Celonis — $1 billion), Brazil (Nubank — $1.5 billion) and
the Netherlands (MessengerBird — $1 billion). Institutional and PE investors, meanwhile,
powered Sweden-based Northvolt AB’s $2.75 billion funding round. In addition to
showcasing growing geographic diversity, these deals highlight the breadth of sectors
attracting funding in today’s market, including alternative energy, fintech, B2B services,
education, gaming, logistics, and aerospace.
Less typical investors focusing on VC market opportunities
Given the success of many IPOs over the past year and a growing sense of FOMO (the fear
of missing out) a growing number of less typical VC investors are increasing their focus on
the VC market, including private equity players, pension funds, sovereign wealth funds,
university endowments, and family offices. While some may have had a small percentage of
funds allocated to alternative investments such as VC historically, they are now increasing
their allocations. Hedge funds and mutual funds are also putting money in the VC market
because they see low risk opportunities to make returns off companies expected to go public
within the next twelve months. The influx of these non-traditional players is only increasing
the already enormous amount of liquidity in the market.
Global VC investment surges to new in Q2’21VC investment globally surged in Q2’2021, as all regions of the world attracted very strong levels of investment. In addition to regional record highs in Europe and the Americas, a number of countries
saw their highest quarters of VC investment ever, including the United States, Australia, the Netherlands, Switzerland, Israel, India, France, Germany, the United Kingdom, Brazil, Mexico and Canada.
The VC market remains very active, buoyed by a significant amount of available cash, high valuations, and no slowdown in IPO activity.
Unicorn births exceed 2020 total at mid-year
Q2’21 saw a surge in companies globally achieve unicorn status, bringing the total number of
unicorns in 2021 well above the previous annual high of 179 seen in 2018. While the US
accounted for the majority of new unicorns in Q2’21, the others covered quite a geographic
spread, from Bitso in Mexico to SafetyCulture in Australia, Paidy in Japan, and GoStudent in
Austria.
The large number of unicorns likely reflects the ongoing trend of VC investors focusing on their
existing clients, using their investments to allow them to bring on people, fuel their sales and
their valuations. Given how cheque sizes have grown over the past two years, there is some
question as to what will happen to growing unicorns: will they go for an IPO or is there enough
appetite for unicorns to grow beyond a unicorn valuation? This is because there is a cap as to
the level of valuation a company can get to before the exit option is limited to a form of IPO.
Corporates continue to prioritize VC investments
Corporate VC investment was strong in all regions of the world during Q2’21. The pandemic
has really expedited the need for digital transformation, for innovation, and for doing business
better in general. Many established companies globally have come to the realization that they
don’t need to innovate from scratch, and that a better approach might be to partner with or
invest in startups that can help them accelerate their transformation in ways that better align
with the new normal.
Global US | Americas | Europe | Asia
6
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
SPACs gaining attention globally
Over the last few quarters, SPACs have gained a significant amount of traction in the US.
During Q2’21, US-based fintechs SoFi and Payoneer went public via SPAC, in addition to
companies such as Barkbox and Lightning eMotors. Activity cooled somewhat in the second
half of the quarter, after the SEC issued accounting guidance related to accounting of stock
options.
In Europe and Asia, SPACs are gaining more attention from tech companies looking to go
public, although some are finding that going public via a SPAC can still be a complex
undertaking. During Q2’21, Singapore-based Grab delayed its merger with SPAC Altimeter
Growth Corp to Q4’21 in order to meet SEC reporting requirements.
VC investment in biotech flourishing
Biotech and drug discovery was a particularly hot area of investment globally, led by a $735
million raise by US-based Treeline Biosciences. Several countries outside of the US also saw
large biotech deals, including the UK (Alchemab Exscientia — $82.8 million; ViroCell Biologics
— $118 million), China (Jinwei — $123 million) and Canada (Ventus Therapeutics — $100
million). The pandemic has only emphasized the importance of healthcare and biotech, driving
interest in a wide range of health focused products and services, including digital health care
and medical devices.
Global VC investment surges to new in Q2’21, cont’d.Optimism as the world opens up
While the pandemic isn’t over yet, there a growing sense of optimism as COVID-19 vaccine
distribution accelerates globally and investors focus on the sectors expected to remain
attractive in the post-pandemic world. Even as parts of the world have opened up more
broadly, VC investor have continued to flow money into sectors accelerated by the
pandemic, such as fintech, delivery, and B2B services, betting that none of the major
change in terms of customer behaviours will revert to historical norms. VC investors expect
businesses and consumers will continue to embrace innovative business models even after
the pandemic, given their better understanding of the benefits in terms of speed,
responsiveness, and agility.
Trends to watch for globally
VC investment will likely remain robust in most regions of the world in Q3’21, given the
wealth of dry powder in the market, the growing participation of non-traditional VC
investors, and the positive IPO activity. Sectors such as fintech, business productivity, and
health and biotech will likely continue to attract significant investment. Cybersecurity will
likely also be a hot ticket for investors, given the increasing number of transactions
occurring in the cloud.
ESG (environmental social, and governance) is also expected to grow on the radar of
investors, given the increasing importance being placed on sustainability across the
business world. Already, there is increasing investment in businesses with ESG-aligned
business models, such as electric vehicles and food tech. Moving forward, it is likely
investments in these areas will continue to grow, while investors may also increase their
scrutiny of ESG factors when making funding decisions.
Global US | Americas | Europe | Asia
7
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Globally, there is plenty of
cash available for VC
investments—and even
more coming in from private
equity, family offices, and
other players outside of
traditional VC funds looking
for opportunities in the VC
market. Almost everywhere
in the world, VC investment
is incredibly strong and I
don’t see the market globally
going cold. The amount of
money being generated out
there is massive and the
willingness to invest in tech
is just going up.
“
”Jonathan LavenderGlobal Head,
KPMG Private Enterprise
Venture financing continues to hit new highs
Source: Venture Pulse, Q2’21. Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, July 21, 2021.
Although the COVID-19 pandemic is far from over, it is
clear that as some economies are able to reopen and
embark on the pathway back to normal life, the seismic
changes in digitization, the shift to cloud and exciting
innovations in life sciences and logistics are all still
encouraging mass infusions of capital into thousands of
startups worldwide. 2021 has now observed record levels
of VC invested outstripping anything recorded prior,
thanks to the ongoing flood of billions of dollars in capital
committed to venture fund managers’ coffers. Deal
volume is also remarkably strong, with figures expected
to rise even further once additional transactions are
disclosed. Such exuberance does warrant a note of
caution but as businesses worldwide continue to adapt
under the forcing function of the COVID-19 pandemic’s
changes, potential market opportunities continue to
abound.
Global venture financing2013–Q2'21
Global US | Americas | Europe | Asia
$40.4
$40.5
$56.4
$37.2
$47.3
$59.6
$37.9
$37.1
$36.1
$53.6
$57.0
$55.5
$76.8
$91.9
$74.3
$94.9
$71.0
$68.6
$137.4
$76.3
$68.9
$72.2
$94.2
$98.0
$147.2
$157.1
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Angel & seed Early VC Later VC
7
# Q2VC
8
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Up rounds surge to record proportion of volume
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global median deal size ($M) by stage2013–2021*
Global up, flat or down rounds2013–2021*
Global US | Americas | Europe | Asia
$1.5
$6.00
$15.00
$0
$2
$4
$6
$8
$10
$12
$14
$16
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Angel & seed Early VC Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Up Flat Down
9
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Competition pushes medians up across every series
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global median deal size ($M) by series2013–2021*
Global US | Americas | Europe | Asia
$2.0
$0.7
$10.0
$25.0
$53.0
$105.0
$0
$20
$40
$60
$80
$100
$120
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
10
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Series D+ achieves stratospheric mark of $1 billion
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global median pre-money valuation ($M) by series2013–2021*
Global US | Americas | Europe | Asia
$6.7$3.9
$32.0
$100.0
$270.0
$1,000.0
$0
$200
$400
$600
$800
$1,000
$1,200
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
11
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The first half of 2021 sees surge in early-stage VC invested
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
For multiple editions of the Venture Pulse, the drift of capital concentration to the later stages, as well as financing volume, has been an ongoing theme. However, it is worth remarking that in 2021 to date, a
staggeringly large proportion of VC invested has occurred at Series A in particular, while angel and seed-stage deals are proceeding along at a healthy clip. The profusion of capital and optimism across the venture
ecosystem is now beginning to exert an inflationary effect across the entire gamut of stock series and company lifecycle, as opposed to an over-concentration of funding the most mature, largest venture-backed
companies that are closer to potentially lucrative liquidity events.
Global deal share by series2013–2021*, number of closed deals
Global deal share by series2013–2021*, VC invested ($B)
Global US | Americas | Europe | Asia
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+
Series C
Series B
Series A
Angel & seed$0
$50
$100
$150
$200
$250
$300
2013 2014 2015 2016 2017 2018 2019 2020 2021*
12
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Pharma & biotech poised to break records
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global financing trends to VC-backed companies by sector2013–2021*, number of closed deals
Global financing trends to VC-backed companies by sector2013–2021*, VC invested ($B)
Global US | Americas | Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Commercial Services
Consumer Goods & Recreation
Energy
HC Devices & Supplies
HC Services & Systems
IT Hardware
Media
Other
Pharma & Biotech
Software 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
13
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The rising tide of capital has lifted not only metrics across every stage and series, but also first-time
funding tallies. At just over $20 billion, 2021 is looking to set a new high for the sheer heft of capital
invested in first-time financings, even as volume is pacing to resurge from the gradual decline recorded
since a peak in 2015. If anything, this signals animal spirits but also the founder-friendly nature of the
current market environment.
Corporates pick the pace back up
In contrast to data earlier in the year, it is now clear that corporate venture arms resumed a vigorous
pace of participating in or originating transactions in 2021. As a result, aggregate VC invested tallies of
all the associated financings have been climbing to near-record levels. Especially in the wake of the
COVID-19 pandemic, corporations across all sectors will continue to examine which technologies or
innovations they need exposure to in order to remain adaptable and flexible.
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Note: The capital invested is the sum of all the round values in which corporate venture capital investors participated, not the amount that corporate
venture capital arms invested themselves. Likewise, deal count is the number of rounds in which corporate venture firms participated.
Corporate VC participation in global venture deals2013–Q2'21
Global US | Americas | Europe | Asia
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global first-time venture financings of companies2013–2021*
$5.5
$7.0
$6.5
$6.9
$9.4
$12.9
$10.6
$13.2
$17.3
$17.9
$30.1
$15.8
$25.0
$37.7
$17.6
$16.4
$14.0
$26.1
$31.6
$23.8
$35.6
$58.6
$40.0
$52.5
$33.9
$32.7
$99.7
$40.5
$34.9
$38.0
$47.1
$45.5
$62.5
$73.9
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$0
$20
$40
$60
$80
$100
$120
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
$13.3
$15.6
$27.8
$24.2
$22.3
$32.0
$29.9
$28.4
$20.1
0
2,000
4,000
6,000
8,000
10,000
12,000
$0
$5
$10
$15
$20
$25
$30
$35
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Deal value ($B) Deal count
14
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
VC flows to unicorns even more but liquidity provides encouragement
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Note: PitchBook defines a unicorn venture financing as a VC round that generates a post-money valuation of $1 billion or more. These are not necessarily
first-time unicorn financing rounds, but also include further rounds raised by existing unicorns that maintain at least that valuation of $1 billion or more.
Global unicorn rounds2013–Q2'21
Global venture-backed exit activity2013–Q2'21
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Note: Exit value for initial public offerings is based on post-IPO valuation, not the size of the offering itself.
Even after remarkably strong liquidity trends for venture-backed companies in 2020, the first half of 2021
saw an even faster clip of exits, fueled by record highs in equities and the brief SPAC boom. As volatility
in equity markets has ticked up, it remains to be seen if there is a dampening effect upon public listings,
however, M&A also has proceeded at a robust pace, which will only be energized further as deadlines
loom for SPAC sponsors.
Some unicorns have raked in sizable financings as likely one of their last funding rounds while staying
private, while others continue to make no commitment nor signal that they will go public any time soon.
As the overall unicorn population continues to grow, moreover, the sheer volume of financings was
bound to rise, especially as so many saw their businesses only accelerated in the mass adoption of new
technologies during 2020.
$18.8
$17.6
$17.6
$13.0
$25.4
$32.3
$21.5
$41.3
$18.4
$18.2
$83.5
$23.7
$20.4
$23.0
$30.1
$27.5
$57.5
$65.5
0
50
100
150
200
250
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
$9.0
$18.4
$23.3
$46.7
$28.7
$73.7
$30.6
$70.5
$22.6
$34.8
$29.3
$41.1
$32.9
$29.9
$31.6
$21.0
$46.7
$37.1
$31.2
$67.3
$28.5
$112.7
$160.5
$55.3
$58.8
$174.3
$74.2
$54.8
$43.7
$59.4
$163.8
$197.2
$314.0
$306.4
0
100
200
300
400
500
600
700
800
900
$0
$50
$100
$150
$200
$250
$300
$350
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Exit value ($B) Exit count
Global US | Americas | Europe | Asia
15
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Public listings already notch new high in exit value
Already 2021 has seen exit value achieved via public listings surge past the records of 2020. Despite more volatility in equity markets and concerns over recent regulatory agencies’ shifts concerning
SPACs, it remains likely that a healthy pace of public listings will continue, even if M&A remains the most popular route to liquidity in line with historical norms. Buyouts also look set to potentially
exceed prior highs as PE fund managers increasingly look to the venture-backed ecosystem for new targets.
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global venture-backed exit activity (#) by type2013–2021*
Global venture-backed exit activity ($B) by type2013–2021*
$0
$100
$200
$300
$400
$500
$600
$700
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
Global US | Americas | Europe | Asia
16
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Even after a near-record year for capital raised at $127.7 billion, the first half of 2021 is off to
such a strong start it is not inconceivable this year will see
the first-ever $200 billion allocated to VC.
Fundraising set to notch new highs
Global venture fundraising2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021.
Data provided by PitchBook, July 21, 2021.
Allocators worldwide continue to flock to alternative investments—venture is no exception. Although
the pace of fundraising cycles can vary, and thus there is no certainty to this assumption, if the pace
of commitments continues at the same rate, it is not inconceivable that the $200 billion-plus threshold
is finally broached this year. To counter that point, many of the mega-funds closed upon this year
may be the last for some of the largest and most experienced venture firms in the space, and thus
even if volume continues at a quite-robust pace, the aggregate value of commitments may not rise in
such spectacular fashion.
$41.6
$63.8
$85.2
$113.5
$117.2
$142.5
$113.9
$127.7
$103.7
0
200
400
600
800
1,000
1,200
1,400
$0
$20
$40
$60
$80
$100
$120
$140
$160
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Capital raised ($B) Fund count
Global US | Americas | Europe | Asia
17
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
First-time fundraising slightly off from prior years but still healthy
Fund sizes have been creeping higher, as the universe of fund managers has only expanded and firms scale up their strategies and resources, throughout the 2010s. As the new decade commences, first-time
fundraising as a proportion of overall fundraising is somewhat off, but that may still reverse by year’s end as more-experienced firms close more swiftly, and allocators then turn to emerging managers to maintain desired
levels of exposure to VC.
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global venture fundraising (#) by size2013–2021*
Global first-time vs. follow-on venture funds (#)2013–2021*
Global US | Americas | Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+
$500M-$1B
$250M-$500M
$100M-$250M
$50M-$100M
Under $50M
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
1. Northvolt — $2.75B, Stockholm, Sweden — Automotive cleantech — Series E
2. Waymo — $2.5B, Mountain View, US — Automotive — Late-stage VC
3. J&T Express — $2B, Jakarta, Indonesia — Logistics — Late-stage VC
4. BYJU’S — $1.55B, Bengaluru, India — Edtech — Series F
5. Nubank — $1.5B, Sao Paulo, Brazil — Fintech — Series G
5. Horizon Robotics — $1.5B, Beijing, China — Semiconductors — Corporate
7. SpaceX — $1.2B, Hawthorne, US — Spacetech — Late-stage VC
8. Celonis — $1B, Munich, Germany — Business/productivity software — Series D
8. MessageBird — $1B, Amsterdam, Netherlands — Cloudtech — Series C
8. Epic Games — $1B, Cary, US — Entertainment software — Late-stage VC
3
4
Top 10 global financings in Q2’21
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
The flood of VC proliferates worldwide
5
1
7
Global US | Americas | Europe | Asia
8
18
# Q2VC
5
2
8
8
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
In Q2’21 US VC-backed companies raised
$75.0B across 3,296 deals
Global US Americas | Europe | Asia
19
# Q2VC
20
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Growing diversity of sectors attracting large funding rounds
A wide variety of US-based companies attracted $500 million+ funding rounds during Q2’21,
including autonomous driving company Waymo ($2.5 billion), aerospace-focused SpaceX
($1.2 billion), gaming company Epic Games ($1 billion), and biotech firm Treeline Biosciences
($678 million). Three fintech companies also raised large rounds during the quarter, including
Perch ($775 million), Better ($500 million), and Daily Pay ($500 million). These deals highlight
the breadth of sectors attracting attention from investors in the US.
Fundraising poised to shatter previous high
Fundraising activity in the US continued to be red hot in the US during Q2’21, with the total
raised to date just shy of the previous annual record high. The burst in fundraising activity
highlights the wealth of dry powder in the market looking for a home, while also emphasizing
the successes of a number of the well-established VC firms. These firms are delivering higher
returns over the life of their funds, returns that are expected to grow further given the IPO and
exit successes that have been seen over the last few quarters. This is driving some
institutional investors and less traditional investors to invest in funds led by highly successful
VC firms, thus boosting fundraising totals even further.
VC investment in US reaches record high in Q2’21In Q2’2021, VC investment reached yet another record high in terms of total deal value, slightly surpassing the previous quarter’s total in deal value.
Institutional investors following the smart money
A growing number of institutional investors are investing in late stage VC deals, in part by
following the smart VC money. They are identifying opportunities related to startups that are
well established, Series C and beyond, and evaluating whether companies have legs before
making investments. Many of these institutional investors see these late stage investments as
relatively safe bets given the confidence such companies have gained from highly successful
VC firms.
Corporate VC investment shows continued strength
Corporate VC investment in the US showed continued strength in Q2’21. Many corporates are
using VC investments as their R&D center, in part so they can make a range of investments in
order to see what sticks. Many corporates have also recognized that they need to enhance
their innovation capacity, and see VC investments and M&A activity as a means to make leaps
forward in terms of their capabilities.
IPO Market remains strong
The IPO market in the US continued to show strength in Q2’21, with no slow down in activity in
terms of companies preparing to go public. The quarter saw a number of IPOs, including plant-
based milk company Oatly, which raised $1.4 billion in its May debut, with shares rising as
much as 34% in first day trading.1
The quarter also saw several direct listings, including cryptocurrency exchange Coinbase in
April and website hosting company Squarespace. A number of SPAC mergers also occurred
during Q2’21, including fintech company SoFi with Social Capital Hedosophia Holdings Corp.
V2 and subscription service Barkbox with Northern Star Acquisition.3
Global US Americas | Europe | Asia
1 https://markets.businessinsider.com/news/stocks/oatly-stock-price-ipo-10-billion-valuation-plant-based-milk-2021-5-10304520002 https://investorplace.com/hypergrowthinvesting/2021/06/sofi-stock-spac-merger-beginning-of-huge-breakout/3 https://news.spacconference.com/2021/06/02/bark-and-northern-star-close-merger/
21
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Electric vehicle ecosystem gaining traction
In recent quarters, VC investors have shown increasing interest in everything to do with
electric vehicles. In addition to specific car technologies and charging platforms, there has
been a growing focus on the ecosystem supporting electric vehicles. For example, the
development of destination charging options that allow vehicles to be charged while owners
are shopping or at work.
SPACs losing some shine
After two quarters of surging interest in SPAC transactions, interest waned somewhat in
Q2’21. While SPACs remain a viable option for companies looking to exit, there is growing
recognition of the reality surrounding SPAC transactions, including the need to be ready to
perform as a public company from day 1. In April, the SEC also issued accounting guidance
classifying SPAC warrants as liabilities rather than as equity instruments.4 This sparked
some concern that the SEC will enhance its regulatory scrutiny of SPACs in the future.
Betting on the new normal
COVID-19 changed the world, shifting how people work, how they shop, and how they
engage with companies. VC investors recognize that the world will never be the same and
are placing big bets on companies expected to thrive in the post-pandemic new normal. This
is driving investment in a wide range of sectors, from fintech and healthcare to gaming, ESG,
and e-commerce.
One subsector beginning to attract attention from investors is staffing. This is because many
companies are expected to leverage hybrid work models moving forward. Such an approach
also allows companies to draw on a broader talent pool for filling critical and highly
competitive roles, thus increasing the need for companies with technologies able to make
staffing processes more efficient and effective.
VC investment in US reaches record high in Q2’21, cont’d.Trends to watch for in the US
VC investment is expected to remain strong heading into Q3’21, particularly in areas
such as fintech, automotive, and AI. Given the supply chain issues identified as a result
of the Evergreen ship blocking the Suez Canal and the ransomware attack on the
Colonial Pipeline, there could also be increasing interest in logistics and supply chain
solutions. Investment in agtech and foodtech is also expected to grow, particularly in
areas such as alternative packaging and delivery, in addition to investment in touchless
store related technologies.
IPO activity will likely remain strong well into Q3’21. SPAC transactions will be an area
to watch over the next few quarters given that the multitude of SPACs that have been
formed in recent months will need to find target companies.
Global US Americas | Europe | Asia
4 https://www.cnbc.com/2021/04/21/spac-transactions-come-to-a-halt-amid-sec-crackdown-cooling-retail-investor-interest.html
22
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Here in the US, valuations
continue to be high, and
capital from numerous
sources continues to be
plentiful. This is providing
significant optionality for
companies as they mature,
e.g., ability to do a later-
stage round and delay a
potential IPO. This
optionality is excellent as
companies wait to see what
the post-pandemic outcomes
are for consumer and
corporate behaviors.
“
”Conor Moore Global Co-Leader — Emerging Giants,
KPMG Private Enterprise, KPMG
Partner, KPMG in the US
The first half of 2021 sees an unprecedented influx of capitalVenture financing in the US2013–Q2'21
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
As financing volume looks primed to set new highs,
so too has the sheer influx of capital into the US
venture ecosystem led to all-time new highs. The first
two quarters of 2021 have each notched $75 billion in
VC invested, a sum close to double much of prior
quarterly highs. Fund managers’ enthusiasm can be
explained in part by the multiple indications that the
rate of adoption of multiple key digital technologies
and the need for even more across a wide range of
business operations has accelerated to a point that it
will not slow for years, which has created
opportunities for many extant and fledgling startups.
However, the degree of competition also by now
necessitates notes of caution.
Global US Americas | Europe | Asia
$15.2
$22.4
$17.1
$19.3
$20.8
$21.4
$23.0
$19.7
$20.4
$26.5
$18.5
$16.3
$18.3
$22.1
$24.5
$23.3
$29.5
$31.3
$33.9
$48.5
$37.9
$35.6
$36.0
$32.8
$36.5
$37.1
$47.7
$43.1
$75.0
$75.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Angel & seed Early VC Later VC
22
# Q2VC
23
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The flood of capital widens across both early & late stages
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median deal size ($M) by stage in the US2013–2021*
Up, flat or down rounds in the US2013–2021*
Global US Americas | Europe | Asia
$1.6
$9.5
$16.0
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Angel & seed Early VC Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Up Flat Down
24
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Modest rises at the earlier stages; big jumps at the late-stage
Median deal size ($M) by series in the US2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Note: Figures rounded in some cases for legibility.
Global US Americas | Europe | Asia
$2.6$0.6
$11.0
$28.1
$60.0
$100.1
$0
$20
$40
$60
$80
$100
$120
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
25
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The latest stage nears $1B
2020 closed out with record valuations, indicating VCs focused on the longer term and in safer prospects due to company maturity and sheer size throughout the year, continuing to fuel record valuations across nearly
every series. But 2021 seems to be approaching signs of remarkable levels of both confidence and the ramifications of record dry powder, with the latest stage of financings seeing a surge near $1 billion in the median
Series D+ financing.
Median pre-money valuation ($M) by series in the US2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Note: Figures rounded in some cases for legibility.
Global US Americas | Europe | Asia
$8.0 $4.9$33.0
$105.0
$270.0
$985.0
$0
$200
$400
$600
$800
$1,000
$1,200
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
26
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Financing volume remains healthy across all stages
Deal share by series in the US2013–2021*, number of closed deals
Deal share by series in the US2013–2021*, VC invested ($B)
Global US Americas | Europe | Asia
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+
Series C
Series B
Series A
Angel & seed $0
$20
$40
$60
$80
$100
$120
$140
$160
2013 2014 2015 2016 2017 2018 2019 2020 2021*
27
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Life sciences increasingly attracts more capitalVenture financing by sector in the US2013–2021*, number of closed deals
Venture financing by sector in the US2014–2021*, VC invested ($B)
Global US Americas | Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Commercial Services
Consumer Goods & Recreation
Energy
HC Devices & Supplies
HC Services & Systems
IT Hardware
Media
Other
Pharma & Biotech
Software 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
28
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
CVCs continue to boost record VC invested tallies
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
First-time financing volume has held steady in the US over the past few years, albeit at a slightly more
muted rate than observed in the first half of the 2010s. However, a key indication of how the venture
financing market has shifted is the inflation in VC invested even at the first-time stage, where 2021 is
poised to eclipse all prior levels and set a new record should the pace of funding in the first half of the
year continue.
Key contributors to the record tallies of VC invested, corporates and their venture arms both have
participated at an elevated rate in some of the larger financings observed in H1 2021, pushing the
aggregate value of associated financings to well over $30 billion per quarter. Among the key drivers of
this increased desire for exposure to new technologies is the push by multiple businesses to accelerate
their planned digitization and R&D efforts, further fueled by the rapid acceleration in change for
consumer and corporate behavior due to the pandemic.
Corporate participation in venture deals in the US2013–Q2'21
First-time venture financings of companies in the US2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global US Americas | Europe | Asia
$3.5
$3.6
$4.4
$4.2
$5.5
$8.9
$5.6
$7.5
$8.8
$8.9
$10.8
$8.1
$9.2
$15.2
$7.5
$6.3
$6.4
$8.6
$11.9
$9.9
$12.5
$15.6
$16.0
$26.8
$18.8
$16.2
$14.8
$13.6
$17.2
$17.7
$22.0
$17.5
$32.2
$32.3
0
100
200
300
400
500
600
700
800
$0
$5
$10
$15
$20
$25
$30
$35
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
$7.1
$8.3
$9.6
$9.1
$9.1
$14.7
$13.8
$13.9
$9.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
$0
$2
$4
$6
$8
$10
$12
$14
$16
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Deal value ($B) Deal count
29
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Over the years, we’ve seen
nontraditional investors
such as corporations,
mutual funds, sovereign
wealth funds and hedge
funds dip their toes into the
VC market, but as soon as
there is any sort of hiccup
or downturn in the market,
they’ll very quickly reduce
their allocation to the asset
class. Right now, they’re
going far beyond dipping a
toe in; they’re putting their
whole foot in and really
adding to their exposure in
the VC space.
“
”Jules WalkerSenior Director, Business
Development,
KPMG in the US
Massive liquidity flows backdrop record dealmaking figuresGlobal US Americas | Europe | Asia
29
# Q2VC
2021 shows no signs of slowing down when it comes to
liquidity for VC-backed portfolio companies. In turn, this
surge helps provide an encouraging backdrop for the
billions of dollars of investment flowing in on the
dealmaking side. Capitalizing on one of the most
remarkable public market environments in history, mature
unicorns are finally debuting while large companies are
closing acquisitions of others. As long as no significant
shocks to markets persist for some time, even upticks in
volatility are unlikely to discourage this ongoing flood of
exit value.
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by
PitchBook, July 21, 2021.
Venture-backed exit activity in the US2013–Q2'21
$5.4
$13.6
$19.6
$33.3
$23.7
$23.5
$21.1
$44.4
$11.7
$19.0
$22.1
$20.7
$19.1
$21.5
$21.4
$10.9
$33.7
$19.7
$16.2
$31.2
$19.7
$32.1
$33.3
$38.7
$47.9
$146.1
$43.9
$23.9
$19.0
$29.7
$104.1
$134.7
$130.9
$241.3
0
50
100
150
200
250
300
350
400
$0
$50
$100
$150
$200
$250
$300
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Exit value ($B) Exit count
30
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Red-hot IPO market continues to set new highs
The red-hot, if increasingly volatile, equities market continues to encourage unicorns and other mature venture-backed companies to go public. Already 2021 has seen a new high in exit value achieved through public
listings, with the second half of the year likely to bring such a flood of liquidity that new highs will be notched for the decade in both volume and value. Such a rate of debuts is healthy for the private market ecosystem,
enabling the most mature and/or prepared companies to go public and achieve the ability to tap broader capital markets at a greater scale than ever before. Although far from perfectly efficient, the pricing mechanisms
in public equity markets will also be useful for investors and entrepreneurs alike in assessing which business models are truly able to be proven out with additional validation beyond the private investment realm.
Venture-backed exit activity (#) by type in the US2013–2021*
Venture-backed exit activity ($B) by type in the US2013–2021*
0
200
400
600
800
1,000
1,200
1,400
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
$0
$50
$100
$150
$200
$250
$300
$350
$400
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
Global US Americas | Europe | Asia
31
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
2021 poised to set new records by summer 2021
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided
by PitchBook, July 21, 2021.
US venture fundraising2013–2021*
At 338 closed funds for an aggregate of $74.1 billion, the US is likely to see a new record set by
mid-summer in terms of aggregate value allocated to the venture asset class. This is the
culmination of not only an ever-increasing turn to alternative investments by allocators, but also the
growth of and diversification among the venture firm universe.
… by midsummer 2021, an all-time high for
capital committed to VC in the US is likely, potentially exceeding $100 billion.
$21.2
$37.8
$41.4
$49.0
$43.7
$72.3
$61.5
$81.0
$74.1
0
100
200
300
400
500
600
700
800
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Capital raised ($B) Fund count
Global US Americas | Europe | Asia
32
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Fundraising skews even larger
Venture fundraising (#) by size in the US2013–2021*
Venture fundraising ($B) by size in the US2013–2021*
Global US Americas | Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M
33
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Experienced managers have dominated VC invested tallies thus far
First-time vs. follow-on funds (#) in the US2013–2021*
First-time vs. follow-on funds ($B) in the US2013–2021*
Global US Americas | Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
In Q2’21 VC-backed companies in the Americas raised
$84.1B across 3,659 deals
Global | US Americas Europe | Asia
34
# Q2VC
35
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Bumper quarter for fintech investment across Americas
Fintech saw a banner quarter of investment across the Americas in Q2’21, attracting
numerous $100 million+ funding rounds. During the quarter, Better and DailyPay both
raised $500 million; in Latin America, Nubank raised $1.5 billion, Bitso raised $250
million, and Cloudwalk raised $201 million; and in Canada, Wealthsimple raised $600
million.
While fintech-focused VC investments in Latin America have primarily focused on
payments and lending, the US and Canada have seen a more diverse range of
investments, including into subsectors such as wealth management, insurtech and,
more recently, real estate. Buy now and pay later companies have also gained a lot of
traction in recent quarters.
Unicorn status becoming common in US, still a milestone elsewhere in
Americas
In the first half of 2021, 148 new unicorn companies were born in the Americas. With
valuations clearly continuing to be high, unicorn status appears to be losing some of its
significance, at least in the US, which saw 137 of the new unicorns. In the US, decacorn
status (reaching a valuation of $10 billion+) could become the next major differentiator.
In the rest of the Americas, however, unicorn status is still a major milestone. Canada
saw six new unicorns in Q2’21, including e-commerce financing company Clearco, legal
practice management company Clio, AI-focused chip maker Tenstorrent, AI-powered
chatbot provider Ada Support, ID verification firm Trulioo, and e-commerce focused
retailer Ssense. Mexico, meanwhile, saw its second new unicorn ever during Q2’21:
cryptocurrency platform Bitso.
Record quarter of investment in the Americas
VC investment in the Americas was extremely strong in Q2’21, led by a $2.5 billion deal by Waymo and $1 billion+ funding
rounds by SpaceX and Epic Games in the US.
IPO opportunities abound Americas
The IPO market in the Americas was very active in Q2’21, particularly in the US and
Canada. US IPOs were incredibly varied, including proptech Compass, mobile app
and gaming company AppLovin, beauty-focused Honest Company, construction
software provider Procore and healthcare apparel retailer Figs. Canada also saw
robust IPO activity during Q2’21, including strong debuts by fintech Paymentus,
course platform company Thinkific, cybersecurity firm MagnetForensics, and and
digital media company VerticalScope.
Canada sees another banner quarter of VC investment
After almost doubling its previous record in Q1’21, VC investment in Canada
remained very high in the second quarter, led by a $600 million raise by
Wealthsimple, a $130 million raise by Ada Support, and a $110 million raise by Clio.
B2B solutions were particularly hot in the eyes of investors during Q1’21, in addition
to fintech and biotech AI also generated a lot of interest in Canada given its strong
research pedigree. Over the last few quarters there has been a lot of activity among
AI-focused startups and scaleups, including a C$100 million Series A raise by
autonomous vehicle startup Waabi, highlighting confidence in the growing capacity
for Canadian companies to commercialize AI innovations.
Deep tech also continued to garner attention, primarily from investors with the long-
range capital to make option bets on globally impactful future technologies, such as
BDC and OTPP. During Q2’21, for example, photonics quantum computer company
Xanadu raised $100 million in a deal which included funding from BDC’s Deep Tech
Venture Fund, and follow-ons from OMERS Ventures.
Global | US Americas Europe | Asia
36
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Latin America attracts several $200 million+ funding rounds in Q2’21
VC investment in Latin America was very robust in Q2’21, led by a $1.5 billion raise by
Brazil-based Nubank, a $300 million raise by Brazil-based rental company QuintoAndar,
a $250 million raise by Mexico-based cryptocurrency platform Bitso, and a $201 million
raise by Brazil-based payments firm CloudWalk. The raise by Bitso made the company
Mexico’s second unicorn, following pre-owned car sales platform Kavak in Q4’20.
Fintech continues to be a dominant focus for VC investment across Latin America,
accounting for three of the four largest deals of the quarter. Nubank alone has already
raised $1.5 billion in VC funding in the first half of 2021; its recent fund round valued the
digital bank at $30 billion.5
Corporate investment strong across the Americas
Corporate VC investment was very strong across the Americas during Q2’21 as
corporates continued to invest in startups able to help them advance their innovation
agenda more quickly. Canada, in particular, saw a second straight record quarter of
corporate investment in Q2’21. Given that the importance of agile technologies and
digital solutions has been well proven throughout the COVID-19 pandemic, it is
expected that corporate investment will remain quite high into Q3’21.
Record quarter of investment in the Americas, cont’d.Trends to watch for in the Americas
VC investment across the Americas is expected to remain strong heading into
Q3, 21. Investment in fintech will likely remain very hot, along with investment in
B2B, AI-based solutions, and health and biotech.
At a macro level, there is growing concern about inflation, particularly in the US,
which could potentially have a resonating impact on the public markets and on
VC investment.
Global | US Americas Europe | Asia
5 https://www.forbes.com/sites/mariaabreu/2021/06/08/nubank-is-now-worth-30-billion-after-750-million-investment-led-by-berkshire/?sh=514a455716ce
37
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Q2 2021 sees new high in VC invested
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in the Americas2013–Q2'21
Beyond even the US, which set a new record high for venture investment, multiple
other startup ecosystems raked in sufficient VC invested to also notch record
single-quarter tallies. VCs continue to fuel the rise in key sectors across different
countries, from Canadian life sciences to Brazilian consumer- and SMB-focused
fintechs and business software.
… A staggering $84.1 billion was
invested in VC in Q2 2021, continuing 2021’s remarkable run.
Global | US Americas Europe | Asia
$12.1
$12.2
$12.8
$13.7
$15.8
$23.2
$17.9
$20.1
$21.5
$22.5
$23.8
$20.3
$21.2
$27.0
$19.2
$17.2
$19.1
$23.2
$25.6
$24.3
$31.2
$32.6
$35.3
$50.6
$39.9
$38.3
$38.9
$35.3
$38.4
$38.9
$50.1
$45.6
$80.0
$84.1
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Angel & seed Early VC Later VC
38
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
VCs’ confidence seen in surge of medians & up rounds
Median deal size ($M) by stage in the Americas2013–2021*
Up, flat or down rounds in the Americas2013–2021*
Global | US Americas Europe | Asia
$1.6
$8.5
$15.0
$0
$2
$4
$6
$8
$10
$12
$14
$16
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Angel & seed Early VC Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Up Flat Down
39
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Healthy to historic rises across every financing seriesMedian deal size ($M) by series in the Americas2013–2021*
Global | US Americas Europe | Asia
$2.5$0.6
$11.0
$28.0
$60.0
$105.0
$0
$20
$40
$60
$80
$100
$120
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
40
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
A historic mark of $1B maintainedMedian pre-money valuation ($M) by series in the Americas2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global | US Americas Europe | Asia
$8.0 $5.0$33.0
$100.0
$275.0
$1,000.0
$0
$200
$400
$600
$800
$1,000
$1,200
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
41
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Series A sees surge in deal value
Deal share by series in the Americas2013–2021*, number of closed deals
Deal share by series in the Americas2013–2021*, VC invested ($B)
Global | US Americas Europe | Asia
0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+
Series C
Series B
Series A
Angel & seed$0
$20
$40
$60
$80
$100
$120
$140
$160
2013 2014 2015 2016 2017 2018 2019 2020 2021*
42
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Biotech, pharma & software see strong influx of VC
Venture financing of VC-backed companies by sector in
the Americas2013–2021*, # of closed deals
Venture financing of VC-backed companies by
sector in the Americas2013–2021*, VC invested ($B)
Global | US Americas Europe | Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Commercial Services
Consumer Goods & Recreation
Energy
HC Devices & Supplies
HC Services & Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Canada has an incredibly
strong research pedigree
when it comes to AI, and
we’ve gotten a lot better at
commercializing AI
opportunities. The $100+
million funding rounds of
AI centric companies this
quarter including Ada
Support and Waabi show
the momentum.
“
”Dan WilsonPartner, National Sector Lead,
Technology
KPMG in Canada
42
# Q2VC
43
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
VC investment and deals
activity in Canada has been
literally gangbusters—and the
pace doesn’t seem to be
subsiding. No surprise, health
and biotech has been a hot
area of investment. When you
think about it, mNRA is a
technology and there’s a lot of
companies looking at how it
can apply outside of COVID-19
vaccines—such as for diabetes
research, for cancer research,
and otherwise. Given the
potential applicability, we’re
going to see a lot more
investment in the future.
“
”Sunil MistryPartner, KPMG Private Enterprise,
Technology, Media and
Telecommunications,
KPMG in Canada
The boom in VC invested continues
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Although the impact of outlier financings such as the
C$750 million funding of fintech Wealthsimple is clear,
what is even more remarkable is that the ranks of
Canadian companies raking in such large sums is growing
even more quickly. In 2021 to date, no fewer than 19
companies have now closed on fundings of $100 million or
more, across an array of sectors with various software
sub-segments being the most popular.
Venture financing in Canada2013–Q2'21
Global | US Americas Europe | Asia
19 separate companies
have now raised $100M
or more in the Canadianecosystem…$
319.2
$293.4
$412.0
$413.4
$338.4
$412.8
$545.4
$545.2
$490.0
$582.9
$517.8
$412.6
$590.4
$324.9
$534.7
$682.1
$299.9
$728.6
$936.4
$684.0
$715.9
$1,0
03.1
$752.4
$868.0
$1,2
37.6
$1,0
51.6
$1,3
78.5
$1,6
86.6
$1,1
54.9
$1,0
33.2
$850.0
$1,2
10.8
$2,9
71.1
$4,0
69.1
0
50
100
150
200
250
300
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
43
# Q2VC
44
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Financing volume is trickling back inGlobal | US Americas Europe | Asia
”Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Mexico2013–Q2'21
The past variability in the flow of venture funding in the Mexican ecosystem makes it a
fool’s errand to try to predict any definitive trends, but after significant volatility
throughout 2020, it is once again promising that three consecutive quarters now have
seen more consistent flows of funding in terms of both volume and VC invested. That
said, more so than in Canada or even Brazil, Mexico’s venture funding trends have been
skewed by a handful of outlier financings, from Kavak to Confio.
There are tentative if not yet certain signs that
the Mexican ecosystem is beginning to
see an uptick in more consistent,
robust funding…
$72.0
$25.0
$9.8
$57.1
$70.4
$132.2
$88.8
$6.5
$16.0
$143.9
$19.0
$21.7
$9.6
$52.5
$72.8
$16.8
$26.0
$55.4
$22.5
$53.4
$32.6
$63.5
$19.6
$85.9
$406.5
$40.2
$289.9
$253.6
$75.5
$28.0
$70.3
$630.0
$231.1
$1,0
61.9
0
5
10
15
20
25
30
35
40
45
50
$0
$200
$400
$600
$800
$1,000
$1,200
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
45
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Brazil’s VC market is growing
rapidly, with an increasing
number of larger deals.
Fintech remains the strongest
area of investment, particularly
the payments space as
companies continue to grow
and scale. Nubank is a prime
example. Between Q1 and Q2
this year, the digital bank
raised close to $2 billion. The
sector will likely remain hot
heading into Q3’21.
“
”Rodrigo GuedesManaging Director,
KPMG in Brazil
Brazil sees all-time high in VC investedGlobal | US Americas Europe | Asia
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Nubank continues to lead the way as a prime example of
growing foreign investor interest in funding mature
Brazilian venture-backed companies’ growth potential.
Raking in additional tranches in Q2 2021 from investors
such as GIC, the Singaporean sovereign wealth fund,
Nubank also saw counterparts such as fintech CloudWalk
and content distribution platform Hotmart rake in hundreds
of millions of dollars in funding. The Brazilian startup
ecosystem continues to expand and diversify, attracting
ongoing foreign investor interest; its growth in turn could
help engender a larger base of domestic investment firms
and angels.
Venture financing in Brazil2013–Q2'21
$136.5
$32.1
$153.5
$97.4
$152.1
$211.2
$165.9
$97.9
$148.0
$299.6
$127.6
$117.7
$125.7
$102.6
$66.5
$130.6
$193.1
$205.5
$89.0
$226.8
$384.8
$86.2
$306.2
$1,0
01.5
$130.8
$497.4
$1,1
04.9
$293.5
$541.1
$573.6
$777.6
$527.4
$1,3
95.7
$2,7
30.6
0
10
20
30
40
50
60
70
80
90
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
45
# Q2VC
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
1. Waymo — $2.5B, Mountain View, US — Automotive — Late-stage VC
2. Nubank — $1.5B, Sao Paulo, Brazil — Fintech — Series G
3. SpaceX — $1.2B, Hawthorne, US — Spacetech — Late-stage VC
4. Epic Games — $1B, Cary, US — Entertainment software — Late-stage VC
5. Perch — $775M, New York, US — Martech — Series A
6. Treeline Biosciences — $735M, Stamford, US — Biotechnology — Series A
7. SambaNova Systems — $678M, Palo Alto, US — Business/productivity software —
Series D
8. Relativity Space — $650M, Long Beach, US — Aerospace & defense — Series E
9. Wealthsimple — $600.7M, Toronto, Canada — Fintech — Series D
10. Transmit Security — $543M, Boston, US — Cybersecurity — Series A
Top 10 financings in Q2’21 in Americas
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Capital flows into multiple market nichesGlobal | US Americas Europe | Asia
46
# Q2VC
3
6
4
5
17
9 10
2
8
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
In Q2’21, European VC-backed companies raised
$34.0B across 1,848 deals
Global | US | Americas Europe Asia
47
# Q2VC
48
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Diversity of fintech areas attracting investment
VC investment in fintech remained very strong across Europe, in part due to the growing mix
of fintech companies attracting investment, from stock trading platform Trade Republic ($900
million) and digital insurance company WeFox ($650 million) to payments firm Mollie ($805
million), ‘buy now, pay later’ company Klarna ($639 million), and Starling Bank ($443 million).
Even straightforward concepts such as BNPL are seeing companies introducing unique value
propositions. In Q2’21, UK-based Zilch raised $80 million; Zilch provides BNPL direct to
consumers by working with Mastercard, rather than with various e-commerce engines.6
IPO and SPAC interest growing
Despite Deliveroo’s rocky IPO ride, interest in public listings continued to grow in Europe, in
terms of both IPOs and SPAC transactions. Q2’21 saw a number of successful IPOs, including
Israel-based business productivity company Monday.com and Sweden-based plant-based milk
company Oatly on the Nasdaq,7 and UK-based cybersecurity firm Darktrace and fintech
PensionBee on the LSE.
Maturing companies in Germany are also increasingly considering IPOs as an exit strategy,
and are beginning to look at what they need to do in order to be successful. This is quite
different than 12 to 24 months ago, when there was more modest IPO interest. One question
raised, however, is whether IPOs will substitute for larger Series D and E rounds, or whether
companies will remain private through later rounds before moving to IPO.
Interest in SPAC transactions also increased in Europe. During Q2’21, UK-based Babylon
Health agreed to a SPAC merger with Alkuri Global Acquisition Corp,8 while Israel-based
Innovid announced plans to merge with ION Acquisition Corp.9
Europe sees forth consecutive quarter of record VC investmentVC investment in Europe surged to a new high for the fourth straight quarter in Q2’21, crushing the previous record, driven by large raises by NorthVolt, Celonis, MessengerBird, Trade Republic, Mollie,
FlixBus, WeFox and Klarna. Valuations of companies across Europe continued to grow, with higher multiples being used in many cases compared to historical norms.
A sense of optimism, combined with a significant amount of cash and investors jumping on the investment train following trends such as e-commerce, B2B, and digital services has helped drive valuations.
UK continues to see robust VC investment
After a record quarter of investment in Q1’21, VC investment in the UK remained high in
Q2’21, driven in part by a strong COVID-19 vaccination program and businesses beginning
to feel more certain in the post-Brexit world. Fintech and healthtech attracted the largest
deals in Q2’21, including a $500 million raise by B2B payments firm SaltPay, a $444 million
raise by AI-powered drug discovery company Exscientia, a $443 million raise by digital
bank Starling Bank, and a $130 million raise by digital health company Huma. While later
stage deals attracted the majority of investment, interest in earlier stage deals grew
somewhat, with more businesses beginning to raise Series A and smaller rounds.
VC market continues to boom in Germany
VC investment in Germany reached a new high in Q2’21, led by the $1 billion raise by
business execution management company Celonis. With a valuation over $10 billion, the
funding round made Celonis Germany’s first decacorn. Participation in VC deals has
expanded in Germany and in other parts of Europe, with more participation by non-
traditional investors, such as sovereign wealth funds. From an ecosystem perspective,
Munich is quickly joining Berlin as a highly competitive tech hub, while ecosystems are
growing in Cologne and Hamburg.
Nordic region very attractive to investors
Investment in the Nordic region was incredibly strong in Q2’21, led by a $2.75 billion
investment in battery maker Northvolt AB, a $639 million raise by fintech Klarna, and a $270
million raise by digital health company Kry. With the significant amount of dry powder
available, numerous companies across sectors and across the region have been able to
attract large funding rounds. While Sweden accounted for the largest deals in Q2’21, the
rest of the Nordic countries also attracted impressive deals: Norway-based grocery platform
Oda raised $264 million, Finland-based digital health company Oura raised $100 million,
and Denmark-based drug discovery company ADCendo raised $60 million.
Global | US | Americas Europe Asia
6 https://techcrunch.com/2021/04/19/uks-zilch-raises-80m-at-a-500m-valuation-for-its-direct-to-consumer-buy-now-pay-later-service/7 https://markets.businessinsider.com/news/stocks/oatly-stock-price-ipo-10-billion-valuation-plant-based-milk-2021-5-10304520008 https://www.cnbc.com/2021/06/03/online-health-startup-babylon-to-go-public-via-4point2-billion-spac-deal.html9 https://nocamels.com/2021/06/innovid-spac-merger-public-valuation/
49
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Ireland sees strongest quarter of VC investment ever
VC investment in Ireland was very robust in Q2’21. Health and biotech was of particular
interest to investors, with LetsGetChecked raising $150 million, GH Research raising $125
million, and Mainstay Medical raising $108 million. Investment in the space is likely to
increase over time given growing recognition of both the importance and value of health and
biotech innovations. The fintech sector also saw significant activity during Q2’21. Fenergo
gained unicorn status during the quarter, while e-commerce-focused financing and growth
platform Wayflyer raised $76 million.10 Even as companies in maturing sectors attracted
larger funding rounds, Ireland continued to see a diverse mix of earlier stage companies
raising funds, such as drone delivery company Manna Drones ($25 million) and gifting
platform Andopen ($8 million).
Serial entrepreneurs help drive VC market in Israel
VC investment in Israel was incredibly robust in Q2’2021, led by a $300 million raise by
e-commerce fraud prevention company Forter, a $250 million raise by financial accountability
platform company TipRanks, and a $243 million raise by incisionless surgery firm Insightec.
Israel’s serial entrepreneurs are a hot commodity and a large part of Israel’s strengthening
ability to grow companies into international entities rather than simply focusing on R&D.
Europe sees forth consecutive quarter of record VC investment, cont’d.Trends to watch for in Q2’21
VC investment in Europe is expected to remain robust heading into Q3’21, particularly in areas
such as fintech, healthtech, and B2B services, while investment in cybersecurity is expected to
grow significantly.
Global | US | Americas Europe Asia
10 https://www.finsmes.com/2021/05/wayflyer-raises-76m-in-series-a-funding.html
50
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
For the fourth time in a row, a new record in VC invested
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Europe2013–Q2'21
Even after the significant surge in VC invested to kick off the
year, 2021 has recorded a new all-time high in VC invested,
while financing volume dipped but is likely to hold steady once
additional data is processed. The sheer growth in VC invested is
once again primarily driven by a growing population of mature
companies and extant unicorns that continue to command
significant sums, spanning multiple sectors.
… the sixth straight quarter that the
European venture ecosystem
recorded an increase in VC invested,
to new highs …
Global | US | Americas Europe Asia
$6.1
$4.8
$4.3
$5.2
$5.1
$6.9
$6.3
$8.1
$8.7
$8.8
$7.3
$9.1
$10.3
$12.1
$10.6
$9.1
$9.8
$11.1
$15.0
$15.8
$23.9
$34.0
0
500
1,000
1,500
2,000
2,500
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Angel & seed Early VC Later VC
51
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Deal sizes & up rounds continue to surge
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median deal size ($M) by stage in Europe2013–2021*
Up, flat or down rounds in Europe2013–2021*
Global | US | Americas Europe Asia
$1.25
$2.4
$8.2
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Angel & seed Early VC Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Up Flat Down
52
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The Series D+ stage is approximately tripling 2020 figures
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median deal size ($M) by series in Europe2013–2021*
Global | US | Americas Europe Asia
$1.7$0.7$9.50
$25.0
$75.0
$155.0
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
53
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Capital increasingly flows across all stages in healthy sign
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Deal share by series in Europe2013–2021*, number of closed deals
Deal share by series in Europe2013–2021*, VC invested ($B)
Global | US | Americas Europe Asia
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+
Series C
Series B
Series A
Angel & seed $0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2013 2014 2015 2016 2017 2018 2019 2020 2021*
54
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Software continues to remain key area of focus for investors
European venture financings by sector2013–2021*, number of closed deals
European venture financings by sector2013–2021*, VC invested ($B)
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global | US | Americas Europe Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Commercial Services
Consumer Goods & Recreation
Energy
HC Devices & Supplies
HC Services & Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
55
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
CVCs continue to drive the record surge
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Once again, a caveat must be noted: In a complex environment such as Europe, first-time fundings may
take longer to be ascertained and confirmed. However, 2021 has started off remarkably strong for even
this nascent cohort of companies, with a mammoth $3.3 billion invested over just over 1,000 financings.
This bodes well for future funding given investors’ clear optimism.
Once again, corporates played a key role in supporting the surge in investment over the past several
quarters in the European venture ecosystem, joining in a flurry of large financings that helped drive
aggregate associated deal value to $16.5 billion. This is not so much novel as the natural culmination of
an increasing imperative for corporate venture arms or their direct parents to remain involved in the
maturing European startup ecosystem, as part of forward-looking corporate strategies.
Corporate VC participation in venture deals in Europe2013–Q2'21
First-time venture financings of companies in Europe2013–2021*
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
$0.9
$1.3
$1.1
$1.1
$1.2
$1.0
$1.8
$0.9
$1.2
$1.8
$1.4
$1.3
$2.6
$1.8
$1.7
$1.9
$1.8
$2.7
$2.1
$2.9
$2.9
$3.4
$3.4
$3.5
$3.7
$5.0
$4.7
$3.9
$4.0
$5.6
$7.9
$6.5
$10.7
$16.5
0
50
100
150
200
250
300
350
400
450
500
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
$3.1
$2.7
$2.8
$3.1
$3.2
$3.8
$3.1
$3.8
$3.3
0
500
1,000
1,500
2,000
2,500
3,000
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Deal value ($B) Deal count
Global | US | Americas Europe Asia
56
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Robust exit value supports recycling of capital
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture-backed exit activity in Europe2013–Q2'21
For a year straight now, aggregate exit value has stayed above $10 billion
at minimum for each quarter, even as volume has climbed significantly.
That rise in exit count however has also led to the remarkable surge in
liquidity in 2021 to date, with nearly $60 billion notched. This provides a
very encouraging backdrop for founders and backers of mature European
companies across the venture ecosystem.
Global | US | Americas Europe Asia
… with close to $60 billion in exit
value seen in 2021 to date, liquidity
trends continue to encourage record
investment.
$2.1
$3.5
$1.8
$6.3
$3.7
$1.9
$6.4
$16.9
$5.9
$5.2
$3.3
$8.2
$7.1
$3.8
$4.2
$1.7
$4.5
$9.0
$3.1
$4.7
$2.5
$32.8
$12.7
$4.8
$2.4
$2.5
$5.0
$8.0
$1.7
$4.2
$10.1
$11.0
$32.2
$24.2
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
$35
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Exit value ($B) Exit count
57
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Listings set a new high in exit value already
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture-backed exit activity (#) by type in Europe2013–2021*
Venture-backed exit activity ($B) by type in Europe2013–2021*
Global | US | Americas Europe Asia
$0
$10
$20
$30
$40
$50
$60
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
0
100
200
300
400
500
600
700
800
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
58
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Healthy fundraising activity persists
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by
PitchBook, July 21, 2021.
European venture fundraising2013–2021*
Taking pulse of fundraising trends at the midyear mark, it is clear that the European ecosystem is
seeing a level of fundraising activity persist at what could be considered a healthy rate. Although fund
counts could diminish this year based on the current pace, total capital committed to European funds
has eclipsed $11 billion by a robust amount. Any slowdown is likely driven by the previous years in the
overall fundraising cycle, wherein multiple European firms closed on funds recently and thus have yet
to return to the fundraising trail in order to raise successor vehicles. The bulk of VC raised in the
period from 2018 to 2020 is still being invested, as is evidenced by the surges on the dealmaking side.
Hence, a potential rise in fundraising could occur after this temporary plateau.
$10.9
$11.6
$11.2
$18.5
$25.4
$16.7
$21.2
$19.7
$11.6
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Capital raised ($B) Fund count
Global | US | Americas Europe Asia
59
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Upper-end funds set new high in proportion of VC committed
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture fundraising (#) by size in Europe2013–2021*
First-time vs. follow-on venture funds (#) in Europe2013–2021*
Global | US | Americas Europe Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+
$500M-$1B
$250M-$500M
$100M-$250M
$50M-$100M
Under $50M
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on
60
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The latest stages climb to stratospheric highs
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median pre-money valuation ($M) by series in Europe2018–2021*
$4.9
$3.75 $23.1
$55.3
$235.9
$1,481.4
-$100
$100
$300
$500
$700
$900
$1,100
$1,300
$1,500
2018 2019 2020 2021*
Seed Angel A B C D+
Global | US | Americas Europe Asia
61
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
UK sees record tally of VC invested already
There is growing optimism as
we emerge from the pandemic
and it is no surprise to see a
linkage between this optimism
and the extent of vaccination
programmes. In the UK, it’s
really positive to see deal
volumes increasing as well as
deal value, creating more of a
pipeline for the major funding
rounds of the future. Access
to talent post Brexit will
continue to be a concern for a
while, but the explosion in
remote and hybrid working in
the last year or so has eased
those concerns somewhat as
global talent is perhaps more
accessible than ever.
“
”Kevin SmithHead of KPMG Private Enterprise in EMA,
Global Co-Leader — Emerging Giants,
KPMG Private Enterprise, KPMG
Partner, KPMG in the UK
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in the United Kingdom2013–Q2'21
Global | US | Americas Europe Asia
$0.8
$1.1
$0.7
$1.0
$1.0
$1.2
$1.0
$1.3
$1.5
$1.0
$2.2
$2.0
$1.6
$1.5
$1.5
$1.6
$1.4
$2.7
$2.2
$4.1
$2.5
$3.1
$2.6
$3.1
$3.8
$3.6
$3.5
$3.0
$3.1
$3.6
$3.8
$5.2
$8.0
$8.9
0
100
200
300
400
500
600
700
800
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
61
# Q2VC
62
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
London remains lodestar of British venture ecosystem
Source: Venture Pulse, Q2'21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in London2013–Q2'21
Global | US | Americas Europe Asia
$0.5
$0.6
$0.3
$0.5
$0.6
$0.6
$0.6
$0.7
$0.9
$0.5
$1.2
$1.1
$0.9
$0.9
$0.9
$0.8
$0.7
$2.1
$1.4
$3.5
$1.6
$1.8
$1.7
$2.0
$2.3
$2.6
$2.3
$2.1
$1.7
$2.5
$2.9
$3.7
$5.1
$5.6
0
50
100
150
200
250
300
350
400
450
$0
$1
$2
$3
$4
$5
$6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
63
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Even as financing volume takes a breather, VC invested surges
We are all very focussed on
our health and wellbeing
and the pandemic has
brough this into sharp
focus. It is no surprise then
that investors are keenly
focussed on health-tech
and biotech and the
benefits that can be
achieved by supporting
these companies to
develop life enhancing
products and services. This
quarter we saw significant
investments made in these
areas in Ireland.
“
”Anna ScallyPartner, Head of Technology and
Fintech Lead,
KPMG in Ireland
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Ireland2013–Q2'21
Global | US | Americas Europe Asia
$142.8
$50.6
$158.6
$108.6
$265.8
$180.9
$32.4
$97.4
$187.0
$222.2
$164.7
$38.9
$313.8
$100.6
$146.1
$259.0
$199.9
$96.7
$175.3
$102.5
$349.0
$517.0
$72.6
$409.8
$139.1
$515.5
$117.5
$111.3
$111.5
$219.3
$188.9
$464.1
$250.2
$491.5
0
50
100
150
200
250
$0
$100
$200
$300
$400
$500
$600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
63
# Q2VC
64
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
VC invested jumps to cap remarkable stretch of growth
In Germany, VC investment is
robust, but investors are still
focused on late stage deals.
The investments we are
seeing are still very much
around delivery, e-commerce
and other digital services,
including companies looking
to optimize and enable
businesses digitally. We’re
seeing interest in a wide-
range of these businesses,
but the best example this
quarter is Celonis, which just
became our first decacorn.
”Dr. Ashkan KalantaryPartner, Deal Advisory Venture
Services
KPMG in Germany
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Germany2013–Q2'21
Global | US | Americas Europe Asia
$203.3
$388.9
$648.4
$254.6
$519.7
$426.1
$1,7
59.1
$407.5
$1,0
64.8
$630.0
$909.1
$821.7
$595.9
$564.9
$543.8
$672.8
$538.4
$1,2
28.3
$822.6
$891.9
$1,6
94.1
$877.0
$782.9
$1,4
12.8
$1,1
96.5
$1,4
78.9
$1,9
19.2
$1,4
34.3
$1,2
25.6
$1,8
48.4
$2,1
65.6
$2,5
68.4
$2,9
57.5
$6,0
39.7
0
50
100
150
200
250
300
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
64
# Q2VC
“
65
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Berlin sees new record set, pushing well past $3B+
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Berlin2013–Q2'21
Global | US | Americas Europe Asia
A lot of companies in
Germany — and elsewhere
— are looking to optimize
their internal processes.
They’re all facing the problem
that critical human resources
are becoming scarcer and
more expensive. With the war
for talent becoming more
difficult, these companies
looking for ways to optimize
business processes and
streamline processes
internally. It’s a very hot topic
for corporates and it’s driving
a lot of their investment.
“
”Tim Dümichen Partner, KPMG in Germany
$73.7
$273.1
$620.6
$142.5
$407.0
$198.7
$923.3
$149.6
$905.5
$511.1
$748.5
$324.5
$234.4
$344.9
$166.5
$337.5
$293.2
$989.8
$417.4
$402.1
$1,2
43.8
$376.2
$173.9
$831.3
$517.3
$1,2
17.5
$407.4
$685.2
$628.9
$1,2
80.2
$992.0
$1,7
50.2
$1,5
14.6
$3,3
61.2
0
20
40
60
80
100
120
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
65
# Q2VC
66
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
France sees impact of outliers while Spain takes a pause
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global | US | Americas Europe Asia
France continues to see the impact of more maturing companies being able to close on significantly
sized rounds, with now 10 companies having closed upon financings sized at $100 million or more
already in 2021; such a profusion of capital puts this year on track to see a new record in VC invested.
Spain saw a return to recent historical approximates of VC invested while deal count dipped, after a
starting quarter to 2021 that saw numerous outlier financings help set a new record for VC invested, even
as financing volume embarked upon a mild slide.
Venture financing in Spain2013–Q2'21
Venture financing in France2013–Q2’21
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
$112.3
$119.6
$77.5
$50.6
$109.1
$78.5
$169.8
$44.4
$138.9
$85.4
$161.7
$90.3
$85.0
$365.6
$51.4
$118.7
$127.2
$279.4
$171.0
$102.9
$322.6
$228.0
$267.3
$87.3
$142.3
$446.3
$317.4
$277.9
$232.3
$273.4
$687.3
$408.0
$1,4
92.9
$411.0
0
20
40
60
80
100
120
140
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
$289.6
$399.5
$220.2
$275.4
$360.6
$408.8
$361.2
$330.4
$465.1
$485.5
$655.0
$300.4
$450.0
$502.3
$508.0
$883.5
$794.1
$716.7
$739.7
$541.1
$1,1
34.9
$1,3
03.3
$765.4
$1,0
87.6
$1,3
32.0
$1,4
50.8
$970.3
$1,1
71.2
$1,7
32.0
$1,4
81.6
$2,1
55.9
$1,7
77.6
$1,7
94.1
$3,6
22.7
0
50
100
150
200
250
300
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
67
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Paris joins Berlin in seeing new quarterly record of $3B+
Venture financing in Paris2013–Q2'21
Global | US | Americas Europe Asia
$89.5
$156.1
$56.1
$112.7
$150.3
$162.4
$202.3
$193.9
$113.1
$290.7
$432.2
$81.6
$280.6
$286.4
$341.7
$460.1
$597.7
$518.3
$495.4
$254.5
$697.4
$901.2
$394.0
$705.8
$798.1
$993.8
$422.6
$776.8
$985.1
$1,0
72.7
$1,4
88.5
$875.1
$874.9
$3,0
21.2
0
20
40
60
80
100
120
140
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
68
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Another record quarter in VC
investment in the Nordics.
There is also a lot of attention
around the IPO market right
now. We have a lot of IPOs in
every country in the region –
not just venture-backed IPOs,
but other types of IPOs as
well. IPOs to foreign
exchanges following the
footsteps of strong IPOs by
Oatly (‘Q2 Nasdaq) and
Trustpilot (‘Q1 LSE) can be
an emerging trend to follow.
”Jussi PaskiHead of Startup Services
KPMG in Finland
Nordics continue to rake in large sums as key unicorns expand
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in the Nordics2013–Q2'21
Global | US | Americas Europe Asia
$172.7
$408.9
$177.7
$395.1
$359.4
$307.4
$189.4
$348.1
$431.8
$909.5
$364.7
$449.9
$1,3
31.9
$293.5
$363.1
$577.8
$597.7
$495.4
$520.3
$675.9
$617.4
$824.5
$548.0
$619.7
$1,1
37.1
$2,0
06.6
$955.7
$716.4
$1,1
82.5
$951.5
$2,3
51.7
$1,6
68.5
$3,8
59.7
$5,6
07.7
0
50
100
150
200
250
300
350
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
68
# Q2VC
“
69
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Israeli companies keep attracting foreign investment
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Israel2013–Q2'21
Global | US | Americas Europe Asia
Israel has always been known
for its strong R&D and M&A,
but now our reputation is
strengthening and broadening.
The market is becoming
mature enough that startups
can stay in Israel longer, grow,
and become international
businesses themselves rather
than simply being acquired.
“
”Dina Pasca-RazHead of Technology
KPMG in Israel
$281.5
$248.7
$280.9
$319.7
$289.1
$248.1
$262.4
$345.6
$704.7
$286.8
$274.7
$439.3
$691.0
$554.7
$418.9
$233.2
$542.7
$615.1
$662.1
$630.7
$1,0
29.9
$650.2
$873.6
$1,1
57.2
$1,0
73.0
$936.0
$1,0
82.8
$722.4
$886.1
$977.9
$1,4
95.4
$1,5
37.4
$2,3
06.9
$2,8
15.2
0
20
40
60
80
100
120
140
160
180
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
69
# Q2VC
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
1. Northvolt — $2.75B, Stockholm, Sweden — Automotive cleantech — Series E
2. Celonis — $1B, Munich, Germany — Business/productivity software — Series D
2. MessageBird — $1B, Amsterdam, Netherlands — Cloudtech — Series C
4. Trade Republic — $900M, Berlin — Fintech — Series C
5. Mollie — $805.8M, Amsterdam — Fintech — Series C
6. FlixBus — $650M, Munich — Automotive — Series G
6. Wefox — $650M, Berlin — Fintech— Series C
7. Klarna — $639M, Stockholm — Fintech— Late-stage VC
8. CMR Surgical — $600M, Cambridge — Surgical devices — Series D
9. Getir — $555M, Istanbul — Internet retail — Series D
Top 10 financings in Q2’21 in Europe
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021.
Data provided by PitchBook, July 21, 2021.
A diverse array of geographies & sectors draws fundingGlobal | US | Americas Europe Asia
70
# Q2VC
64
1
2
52
7
6
8
9
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
In Q2’21, VC-backed companies in the Asia region raised
$38B across 1,998 deals
Global | US | Americas | Europe Asia
71
# Q2VC
72
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
China sees numerous $100 million+ VC funding rounds
VC investment in China held steady during Q2’21, with a wide variety of $100 million+ deals,
including Horizon Robotics ($1.5 billion corporate venture capital), Dingdong Maicai $700
million), digital supply chain provider Xingyun Group ($600 million), retailer Zhuanzhuan ($390
million), e-grocery company Dingdong Machai ($330 million), home fitness company Fiture
Technology ($300 million), and cloud services provider Beisen Cloud Computing ($260 million).
Given the increasing government concern and scrutiny of big tech companies in China, there
has been a growing opportunity for second and third tier tech companies focused on areas such
as e-commerce, the sharing economy, and logistics to attract more attention from VC investors.
While many of these players are still working to scale and grow sufficient volume to become
profitable, it could be the beginning of a transition to less concentrated market participation.
India sees VC investment fly through the roof
During Q2’21, VC investment in India soared past the previous record high set in Q4’19, driven
not only by VC investors but also by more traditional funds feeling a sense of FOMO given the
broad applicability of digital business models in the pandemic. A diversity of companies are
attracting VC investment in India, in particular those focused on direct-to-consumer offerings,
including e-commerce, food delivery, hyper-local grocery delivery, video sharing, and gaming.
Investors continued to pour money into edtech companies in India, including BYJU, which raised
a $1.5 billion funding round this quarter. Food delivery was also very hot in Q2’21, led by
Swiggy’s $800 million raise.
VC investment in Asia strengthens as India sets quarterly funding record
VC investment in Asia grew in Q2’21, in part driven by surging investment in India, including a $1.5 billion raise by BYJU, an
$800 million raise by Swiggy, and a $502 million raise by ShareChat.
Exit activity surges in Asia
Exit activity surged in Asia during Q2’21, particularly in China — which saw a ten-quarter high
in exit value, and in India, which saw an eleven-quarter high in exit value and a record number
of exits.
IPO activity was quite strong in Asia this quarter. While domestic IPOs may have slowed
somewhat due to new regulations coming in, there were a number of high profile IPOs by
Chinese companies in the US. Full Truck Alliance (also known as Manbang) also raised $1.6
billion in an US IPO this quarter. In India, food delivery giant Zomato also filed for an IPO this
quarter.
Secondary listings and SPACs gain attention in Hong Kong
Secondary listings in Hong Kong continued apace in Q2’21, with 2021’s total value of
secondary listings already surpassing 2020’s previous peak annual high. The ongoing
secondary exit activity continues to be prompted by SEC rules and regulatory issues related to
the inspection of audit work papers related to US-listed Chinese companies. Many China-
based companies see listing on the HKSE as an alternative option in the event regulatory
challenges in the US are not resolved.
Hong Kong has also started to see some SPAC interest, although much less than in the US,
with a number of investors and family offices in Hong Kong looking to create SPACs. Many of
these investors are taking a cautious approach to SPAC planning.
During Q2’21, the Monetary Authority of Singapore (MAS) completed consultations on the
proposed move to allow SPACs to list on the SGX main board.11 The HKSE is planning to
issue a consultation on the listing of SPACs in Hong Kong.
Global | US | Americas | Europe Asia
11 https://www.ifcreview.com/news/2021/april/singapore-jurisdiction-consults-on-spacs-listing-framework/
73
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Southest Asia: a hotbed of deals activity
The highly competitive Southeast Asia market attracted a number of large deals this quarter,
with Indonesia-based express delivery company J&T Express’s $2 billion raise making it the
largest deal in Asia during Q2’21. Indonesia-based platform giant Gojek also raised $300
million, just prior to its merger with e-commerce platform Tokopedia. GoTo Group, the
combined company valued at approximately $18 billion, is expected to be a dominant market
player offering financial services, e-commerce, ride hailing, and delivery, not only in Indonesia,
but across Southeast Asia.12
During Q2’21, Singapore-based Grab, Gojek’s primary competitor, announced a delay in the
expected finalization of its merger with SPAC Altimeter Growth Corp. The company is
currently working to meet SEC requirements; the merger is now expected to occur by the end
of 2021, where previously the company had targeted end of Q2’21.13 During the quarter,
Singapore also saw a number of large VC deals, including a $642 million raise by business
productivity firm Trax and a $360 million funding round by used car marketplace Carro.14
Fintech remains very hot
Fintech continued to be a very attractive space for VC investors in Asia during Q2’21. India, in
particular, saw a growing range of fintech companies raising significant funding rounds during
the quarter, including CRED ($215 million), an app that incentivises customers to pay their
credit card bills on time, payments firm RazorPay ($160 million), subscription billing service
ChargeBee ($125 million), B2B e-commerce firm OfBusiness ($110 million), and Groww ($84
million), an investment app targeting millennials.
VC investment in Asia strengthens as India sets quarterly funding record, cont’d.
12 https://techwireasia.com/2021/06/tokopedia-gojek-finalize-merger-with-chinese-tech-giants-blessing/13 https://www.reuters.com/business/southeast-asias-grab-says-complete-40-bln-spac-merger-q4-2021-06-09/14 https://www.cnbc.com/2021/06/15/singapore-start-up-carro-raises-360-million-from-softbank-and-others.html
Japan’s startup system attracting larger deals
During Q2’21, Japan attracted several large deals, including a $120 million raise by Buy Now
Pay Later (“BNPL”) provider, ‘buy now, pay later’ focused Paidy15 — which earned the
company unicorn status, a $143 million raise by HR management company SmartHR — which
also became a unicorn, a $60 million raise by QR code payment gateway Netstars16, and a
$50 million raises by digital medtechfirm Allmand molecular analysis diagnostics company
Atonarp17.
The startup ecosystem in Japan continued to mature, in part due to the government’s
increasing focus on encouraging innovation and entrepreneurship. The government developed
its Integrated Innovation Strategy 202018 to focus its efforts on creating innovation capacity
and strengthening research capacity in the country in the wake of COVID-19. Japan’s Ministry
of Economic Trade and Industry also set a goal to help develop 20 unicorns by 202319.
COVID-19 continues to drive attention to health and biotech
The large demand from governments looking for specific services ranging from vaccine
production to clinical trial services has prompted a much broader focus on biotech, health
services, and healthtech across Asia. VC investment in the space was particularly strong in
China during Q2’21, with raises by Jinwei ($123 million), Elpiscience ($105 million),
AbogenBio ($91 million) and Duality Biologics($90 million).
Trends to watch for in Asia
VC investment is expected to continue to be strong in Asia, particularly in areas such as
fintech, e-commerce, edtech, health and biotech, and logistics. IPO activity will be a key area
to watch heading into Q3’21, particularly in India. If Zomato and others have a positive
showing and are very well subscribed, VC investors will likely gain additional confidence in
India’s potential.
15 https://paidy.com/media_center/press/article/45Uuag8qPWVIamEgNqb118 16 https://www.netstars.co.jp/en/262/ 17 https://www.atonarp.com/atonarp-news/atonarp-announces-50m-series-d-financing-to-scale-its-molecular-sensing-and-digital-diagnostics-
testing-platforms 18 https://www8.cao.go.jp/cstp/english/outline_strategy_2020.pdf 19 https://www.meti.go.jp/english/press/2018_06/0611_003_00.html
Global | US | Americas | Europe Asia
74
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The VC market in China is
diversifying, with a broader
range of sectors attracting
investments, including
delivery, fitness, B2B
services, and others. The
absence of major mega-
deals provides an opportunity
for other companies to scale
and grow, which will likely
help spur additional
investments in the future.
“
”Egidio ZarrellaPartner, Clients and
Innovation
KPMG China
2021 continues to see robust rates of fundingGlobal | US | Americas | Europe Asia
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Funding levels continued at a robust pace
throughout the Asia-Pacific ecosystem in the
first half of 2021, with $38.0 billion invested
across a historically healthy tally of completed
rounds. Much dry powder remains on hand
across the ecosystem, especially as domestic
governments look to encourage further local
innovation in key sectors.
Venture financing in Asia2013–Q2'21
$19.6
$27.7
$14.2
$14.6
$11.8
$22.9
$25.0
$23.0
$36.7
$50.4
$31.6
$34.7
$19.5
$17.9
$87.7
$31.4
$20.1
$21.9
$28.8
$36.2
$42.8
$38.0
0
500
1,000
1,500
2,000
2,500
3,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Angel & seed Early VC Later VC
74
# Q2VC
75
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
”
The early stage heats up somewhat
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median deal size ($M) by series in Asia2014–2021*
$1.0$0.8
$10.0
$18.5
$35.1
$100.0
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
Global | US | Americas | Europe Asia
76
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Early-stage volume makes modest gains
Deal share by series in Asia2013–2021*, number of closed deals
Deal share by series in Asia2013–2021*, VC invested ($B)
Global | US | Americas | Europe Asia
0
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+
Series C
Series B
Series A
Angel & seed$0
$20
$40
$60
$80
$100
$120
2013 2014 2015 2016 2017 2018 2019 2020 2021*
77
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Biotech, pharma & software bolster overall funding levels
Asia venture financings by sector2013–2021*, number of closed deals
Asia venture financings by sector2013–2021*, VC invested ($B)
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global | US | Americas | Europe Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
Commercial Services
Consumer Goods & Recreation
Energy
HC Devices & Supplies
HC Services & Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020
2021*
78
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Corporates continue to support healthy levels of VC activity
Source: Venture Pulse, Q2'21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Corporate participation in venture deals in Asia2013–Q2'21
Corporates played a key role in supporting the rise in VC investment after the
COVID-19 shock in Q1 2020; the decline between the end of 2020 and Q1 2021 is
likely temporal and not really attributable to any significant factors. Looking ahead,
it is likely they will continue to be key players in the regional venture ecosystem.
…the continued 2021 recovery is
increasingly the result of the longer-term
motivations of CVCs and their corporate
counterparts’ interests in fostering longer-
term economic growth, especially in
partnership with governments.
Global | US | Americas | Europe Asia
$1.0
$1.7
$0.9
$1.4
$2.5
$2.8
$2.6
$4.4
$6.3
$6.8
$17.6
$6.1
$12.6
$20.5
$7.9
$7.8
$5.5
$13.7
$17.2
$10.5
$19.5
$39.1
$20.1
$20.7
$10.1
$9.1
$78.4
$21.2
$12.6
$14.0
$15.6
$20.0
$17.3
$19.7
0
100
200
300
400
500
600
700
800
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
79
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
The new anti-competition law
in China will help to level the
playing field in the longer run
and provide more room for
other platform players to enter
the market to encourage
competition and innovation,
making Chinese companies
even more competitive locally
and globally.
“
”Irene ChuPartner, Head of New Economy
and Life Sciences, Hong Kong
Region,
KPMG China
Q2 2021 sees normalization after record Q1
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture-backed exit activity in Asia2013–Q2'21
After a record-breaking quarter thanks to a flurry of
debuts across exchanges spanning the region, exit
volume has subsided somewhat, though it is worth
noting that exit value remained quite healthy relative
to historical levels. A potential factor in the diminution
of exit flow is China’s ongoing efforts to step up its
data privacy regulations to protect consumers and
better align with international norms. It remains to be
seen how new policies may affect companies’ choices
as to viable exit routes.
Global | US | Americas | Europe Asia
$1.1
$1.2
$1.6
$5.7
$1.2
$47.6
$3.0
$8.6
$4.6
$8.7
$3.3
$12.0
$6.5
$4.5
$5.8
$7.6
$7.4
$6.0
$11.4
$30.6
$5.0
$46.2
$113.7
$11.3
$8.0
$24.8
$25.1
$22.7
$19.7
$24.3
$48.4
$45.9
$149.2
$35.5
0
20
40
60
80
100
120
140
160
180
$0
$20
$40
$60
$80
$100
$120
$140
$160
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Exit value ($B) Exit count
79
# Q2VC
80
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Record Q1 debuts still leave 2021 as most lucrative year on recordVenture-backed exit activity (#) by type in Asia2013–2021*
Venture-backed exit activity ($B) by type in Asia2013–2021*
Global | US | Americas | Europe Asia
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
$0
$100
$200
$300
$400
$500
$600
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing
81
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Fundraising trends look set to repeat, with rising VC committed
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided
by PitchBook, July 21, 2021.
Venture fundraising in Asia2013–2021*
After a sustained subsiding, the fundraising cycle in the region looks set to exceed the levels
notched last year in terms of capital committed, even if fund counts remain roughly the same. That
is likely due to domestic demand spurring up and governments continuing to seek to incentivize
the local capital ecosystem to grow.
The fundraising cycle looks as if it is
reverting to healthy plateau, with $15.3 billion
in VC committed putting 2021 on pace to
approximate 2020.
$6.4
$12.8
$30.7
$42.9
$44.5
$35.7
$25.9
$21.3
$15.3
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2013 2014 2015 2016 2017 2018 2019 2020 2021*
Capital raised ($B) Fund count
Global | US | Americas | Europe Asia
82
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Follow-on fundraising predominates in 2021 to date
Venture fundraising (#) by size in Asia2013–2021*
First-time vs. follow-on venture funds (#) in Asia2013–2021*
Global | US | Americas | Europe Asia
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on
83
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
”
The latest stage rebounds
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Median pre-money valuation ($M) by series in Asia2017–2021*
$4.5$3.5
$77.4
$226.8$260.2
$850.0
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2017 2018 2019 2020 2021*
Seed Angel A B C D+
Global | US | Americas | Europe Asia
84
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
We have seen more and
more tech enabled
companies in India raising
funds from the capital
markets. This opens a new
avenue for early, mid and late
stage financial sponsors to
cash in on their investments.
This is a significant shift from
an exit route available to
financial investors previously,
which will only increase
the attractiveness of
these businesses.
“
”Nitish PoddarPartner and National Leader,
Private Equity
KPMG in India
India sees surge to near-$8B+ in VC invested, a new recordVenture financing in India2013–Q2'21
$276.3
$349.2
$305.8
$696.6
$498.9
$897.7
$1,7
61.3
$2,2
50.5
$1,3
27.1
$2,3
40.9
$3,4
79.2
$1,4
05.9
$1,0
68.9
$769.3
$1,2
60.8
$586.4
$1,5
76.4
$2,0
88.8
$5,2
77.3
$1,8
66.6
$1,7
56.1
$1,6
87.9
$2,1
85.6
$2,1
21.4
$2,0
94.4
$3,0
03.2
$3,3
36.4
$5,8
52.9
$2,7
22.1
$1,3
82.6
$4,2
16.2
$3,6
80.7
$3,0
33.6
$7,7
65.9
0
50
100
150
200
250
300
350
400
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
84
# Q2VC
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Global | US | Americas | Europe Asia
85
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
”
A decline in mega-deals belies ongoing health in financing volume
Venture financing in China2013–Q2'21
Global | US | Americas | Europe Asia
$1.5
$1.4
$0.9
$1.1
$3.9
$3.6
$3.7
$5.4
$10.4
$8.9
$21.2
$9.1
$17.1
$25.7
$10.6
$12.8
$9.1
$18.5
$16.1
$19.6
$28.7
$45.6
$26.5
$26.4
$14.4
$11.3
$79.9
$17.2
$10.6
$13.3
$20.9
$29.4
$35.1
$19.4
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
86
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Australia sees yet another record quarter for VC invested
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Australia2013–Q2'21
Global | US | Americas | Europe Asia
$58.8
$54.7
$31.5
$127.9
$90.0
$110.9
$77.6
$80.0
$125.8
$121.2
$92.3
$206.4
$120.1
$243.8
$162.0
$127.7
$140.1
$259.5
$144.0
$183.2
$282.2
$260.6
$435.0
$374.0
$354.0
$317.5
$441.7
$475.0
$495.9
$542.0
$289.7
$547.9
$769.7
$907.0
0
20
40
60
80
100
120
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
87
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
Japan’s financing trends remain robust
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021. Data provided by PitchBook, July 21, 2021.
Venture financing in Japan2013–Q2'21
Global | US | Americas | Europe Asia
$112.0
$106.5
$596.0
$93.4
$132.7
$230.2
$216.0
$129.5
$191.1
$211.4
$150.7
$423.5
$296.7
$228.6
$273.4
$290.0
$278.0
$287.4
$393.2
$401.9
$810.1
$352.6
$725.1
$463.4
$593.9
$1,0
30.6
$832.9
$735.5
$736.4
$871.0
$813.1
$565.4
$898.3
$813.8
0
20
40
60
80
100
120
140
160
180
200
$0
$200
$400
$600
$800
$1,000
$1,200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count
Japan’s VC market is maturing
rapidly, in parallel with the
government’s increased
commitment to support
innovation and startups. The
combination of increased
funding availability, market
maturity and entrepreneurial
sophistication is helping to
accelerate scaling of ventures
such as SmartHR in tandem
with larger funding rounds.
The large addressable market
and number of opportunities
for entrepreneurial success
point to continued growth in
venture formation and funding
in Japan.
“
”Paul FordPartner, Head of Private Equity,
KPMG Japan/M&A Deal Analytics
Lead, KPMG FAS, Leader of
Transaction Services,
KPMG Japan, KPMG FAS
87
# Q2VC
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
1. J&T Express — $2B, Jakarta, Indonesia — Logistics — Late-stage VC
2. BYJU’S — $1.55B, Bengaluru, India — Edtech — Series F
3. Horizon Robotics — $1.5B, Beijing, China — Semiconductors — Corporate
4. Swiggy — $800M, Bengaluru, India — Foodtech — Series J
5. Dingdong Maicai — $700M, Shanghai, China — E-commerce — Series D
6. Trax — $642M, Singapore — Business/productivity software — Series E
7. Xingyun Group — $600M, Shenzhen, China — Supply chain services — Series C2
8. ShareChat — $502M, Bengaluru, India — Social/platform software — Series E
9. Toss — $410M, Seoul, South Korea — Fintech — Late-stage VC
10. Zhuanzhuan — $390M, Beijing, China — E-commerce — Series C
Top 10 financings in Q2’21 in Asia-Pacific
Source: Venture Pulse, Q2’21, Global Analysis of Venture Funding, KPMG Enterprise. *As of June 30, 2021.
Data provided by PitchBook, July 21, 2021.
A diverse array of sectors are on exhibit across the top financings in Q2
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
Global | US | Americas | Europe Asia
88
# Q2VC
6
1
910
8
5
7
42
3
89
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
KPMG Private Enterprise Emerging Giants Network.From seed to speed, we’re here throughout your journey
Contact us:
Conor MooreCo-Leader,
KPMG Private Enterprise
Emerging Giants Network
Kevin SmithCo-Leader,
KPMG Private Enterprise
Emerging Giants Network
Global | US | Americas | Europe | Asia
Canada
US
Mexico
Peru
Chile
Brazil
Uruguay
Venezuela
Bermuda
Iceland
South Africa
Russia
China
India
Bangladesh
Australia
New Zealand
Japan
South Korea
Taiwan
(Jurisdiction)
Hong Kong
(SAR, China)
Vietnam
Singapore
Cambodia
Finland
Sweden
NorwayLatvia
LithuaniaPoland
SlovakiaCzech
Ukraine
Turkey
CyprusIsrael
Romania
Greece
MaltaTunisia
ItalySpain
Portugal
FranceLuxembourg
Switzerland
Channel Islands
IrelandUK
Netherlands
DenmarkGermany
Austria
89
# Q2VC
90
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
About us
About KPMG Private Enterprise
You know KPMG, you might not know KPMG Private Enterprise. KPMG Private Enterprise advisers in KPMG firms around the world are
dedicated to working with you and your business, no matter where you are in your growth journey — whether you’re looking to reach new
heights, embrace technology, plan for an exit, or manage the transition of wealth or your business to the next generation. You gain access to
KPMG’s global resources through a single point of contact — a trusted adviser to your company. It is a local touch with a global reach.
The KPMG Private Enterprise Global Network for Emerging Giants has extensive knowledge and experience working with the startup
ecosystem. Whether you are looking to establish your operations, raise capital, expand abroad, or simply comply with regulatory
requirements — we can help. From seed to speed, we’re here throughout your journey.
Global | US | Americas | Europe | Asia
91
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
About the report
— Jonathan Lavender, Global Head, KPMG Private Enterprise, KPMG
— Conor Moore, Global Co-Leader Emerging Giants, KPMG Private Enterprise,
KPMG, Partner, KPMG in the US
— Kevin Smith, Head of KPMG Private Enterprise in EMA, Global Co-Leader
Emerging Giants, KPMG Private Enterprise, KPMG, Partner, KPMG in the UK
— Anna Scally, Partner, Head of Technology and Media and Fintech Lead, KPMG
in Ireland
— Dan Wilson Partner, National Sector Lead for Technology, KPMG in Canada
— Dr. Ashkan Kalantary, Partner, Deal Advisory Venture, KPMG in Germany
Services
— Dina Pasca-Raz, Partner, Head of Technology, KPMG in Israel
— Diogo Garcia Correia, Venture Capital & Emerging Giants Business
Development, KPMG in Brazil
— Egidio Zarrella, Partner, Clients and Innovation, KPMG China
— Hiroshi Abe, Executive Board Member, Partner, KPMG AZSA LLC
— Irene Chu, Head of New Economy and Life Sciences, Hong Kong (SAR), KPMG
China
— Jesus Luna, Partner, KPMG Private Enterprise Leader, KPMG in Mexico
— Jules Walker, Senior Director, Business Development, KPMG in the US
— Jussi Paski, Head of Startup Services, KPMG in Finland
— Lauren Taylor, Fintech Business Development, KPMG in the U.K.
— Lindsay Hull, Director, Emerging Giants Global Network, KPMG Private
Enterprise, KPMG
— Melany Eli, Managing Director, Marketing and Communications, KPMG Private
Enterprise, KPMG
— Nicole Lowe, Head of KPMG Access, KPMG in the U.K.
— Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India
— Paul Ford, Partner, Head of Private Equity, KPMG Japan/M&A Deal Analytics
Lead, KPMG FAS/Leader of Transaction Services, KPMG Japan
— Sunil Mistry, Partner, KPMG Private Enterprise, Technology, Media and
Telecommunications, KPMG in Canada
— Tim Dümichen, Partner, KPMG in Germany
We acknowledge the contribution of the following individuals who assisted in the development of this publication:
Acknowledgements
Global | US | Americas | Europe | Asia
92
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.# Q2VC
About the report
KPMG uses PitchBook as the provider of venture data for the Venture Pulse report
Please note that the MESA and Africa regions are NOT broken out in this report. Accordingly, if you add up the Americas,
Asia-Pacific and Europe regional totals, they will not match the global total, as the global total considers those other regions.
Those specific regions were not highlighted in this report due to a paucity of datasets and verifiable trends.
In addition, particularly within the European region, the Venture Pulse does not contain any transactions that are tracked as
private equity growth by PitchBook. As such rounds are often conflated with late-stage venture capital in media coverage,
there can be confusion regarding specific rounds of financing. The key difference is that PitchBook defines a PE growth round
as a financial investment occurring when a PE investor acquires a minority stake in a privately held corporation. Thus, if the
investor is classified as PE by PitchBook, and it is the sole participant in the recipient company’s financing, then such a round
will usually be classified as PE growth, and not included in the Venture Pulse datasets.
Also, if a company is tagged with any PitchBook vertical, excepting manufacturing and infrastructure, it is kept. Otherwise, the
following industries are excluded from growth equity financing calculations: buildings and property, thrifts and mortgage
finance, real estate investment trusts, and oil & gas equipment, utilities, exploration, production and refining. Lastly, the
company in question must not have had an M&A event, buyout, or IPO completed prior to the round in question.
Fundraising
PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity of startup
companies. In addition to funds raised by traditional venture capital firms, PitchBook also includes funds raised by any
institution with the primary intent stated above. Funds identifying as growth-stage vehicles are classified as PE funds and are
not included in this report. A fund’s location is determined by the country in which the fund is domiciled; if that information is not
explicitly known, the HQ country of the fund’s general partner is used. Only funds based in the United States that have held
their final close are included in the fundraising numbers. The entirety of a fund’s committed capital is attributed to the year of
the final close of the fund. Interim close amounts are not recorded in the year of the interim close. Mega-funds are classified as
those of $500 million or more in size for the following fund categories: venture and secondaries.
Deals
PitchBook includes minority equity investments, as well as investments combined of both equity and debt, into startup
companies from an outside source. Investment does not necessarily have to be taken from an institutional investor. This can
include investment from individual angel investors, angel groups, seed funds, venture capital firms, corporate venture firms,
and corporate investors, as well as from nontraditional investors such as hedge funds, mutual funds or private equity funds.
Investments received as part of an accelerator program are not included, however, if the accelerator continues to invest in
follow-on rounds, those further financings are included.
― Angel/seed: PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the company
to date and we cannot determine if any PE or VC firms are participating. In addition, if there is a press release that
states the round is an angel round, it is classified as such. Finally, if a news story or press release only mentions
individuals making investments in a financing, it is also classified as angel. As for seed, when the investors and/or
press release state that a round is a seed financing, or it is for less than $500,000 and is the first round as reported
by a government filing, it is classified as such. If angels are the only investors, then a round is only marked as seed
if it is explicitly stated.
― Early-stage: Rounds are generally classified as Series A or B (which we typically aggregate together as early-
stage) either by the series of stock issued in the financing or, if that information is unavailable, by a series of factors
including: the age of the company, prior financing history, company status, participating investors, and more.
― Late-stage: Rounds are generally classified as Series C or D or later (which we typically aggregate together as
late-stage) either by the series of stock issued in the financing or, if that information is unavailable, by a series of
factors including: the age of the company, prior financing history, company status, participating investors, and more.
― Corporate: Corporate rounds of funding for currently venture-backed startups that meet the criteria for other
PitchBook venture financings are included in the Venture Pulse as of March 2018.
― Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both firms
investing via established CVC arms or corporations making equity investments off balance sheets or whatever other
non-CVC method is employed.
Exits
PitchBook includes the first full liquidity event (i.e., M&A, buyout, IPO) for holders of equity securities of venture-backed
companies. This does not include direct secondary sales, further share sales following an IPO, or bankruptcies. M&A
value is based on reported or disclosed figures, with no estimation used to assess the value of transactions for which
the actual deal size is unknown. Unless otherwise noted, IPO sizes are based on the pre-money valuation of the
company at the time of the transaction.
In the edition of the KPMG Venture Pulse covering Q1 2019 and all ensuing, PitchBook’s methodology regarding
aggregate exit values changed. Instead of utilizing the size of an IPO as the exit value, instead the prevaluation of an
IPO, based upon ordinary shares outstanding, was utilized. This has led to a significant change in aggregate exit values
in all subsequent editions yet is more reflective of how the industry views the true size of an exit via public markets. In
the edition of the KPMG Venture Pulse covering Q1 2021 and all ensuing, the IPO exit type was updated to include all
types of public listings, including special purpose acquisition companies (SPACs) and other reverse mergers.
Methodology
Global | US | Americas | Europe | Asia
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the particular situation.
©2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International
Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
To connect with a KPMG Private Enterprise adviser in your region email [email protected]
home.kpmg/venturepulse [website]
@kpmg [Twitter]