Worldwide venture funding has nearly doubled YoY reaching $125B and grew by half QoQ in Q1 2021, according to Crunchbase. On average, two startups crossed the unicorn valuation threshold each working day during the first three months of the year.
- Both metrics are by far the highest ever. The second most successful funding quarter was Q4 in 2018, with $92B in VC deals. And in the VC industry's most productive year — 2020 — one startup became a unicorn every other day.
- While pandemic-driven digital product adoption and digital customer interactions nearly doubled, so did the amount and operational metrics of technology startups. As a result, the startups' valuations and investor interest rose as well.
- Mass adoption of special purpose acquisition vehicles (SPAC) has led to a focus shift to more early-stage companies for public investment. Because of SPAC's looser regulatory requirements, the acquirer can seek investment and share its future projections for a company, unlike in a traditional IPO, where only past facts can be discussed. This allowed early-stage companies to catch investors' attention, despite being unable to show past operational success, leading to valuation spikes for companies that would not otherwise have gone public for a long period of time.
- The greatest growth was seen in late-stage investments. This means that most companies sought funding for post-proof of concept and post-product-market fit operations and scaling.