PitchBook NVCA Q3 2021 Venture Monitor Report

Eighteen months into the COVID-19 pandemic, the venture capital (VC) industry has continued to prove its resiliency while also directly supporting the country’s economic recovery and strengthening public markets. VC-backed public listings have eclipsed previous annual records and generated $513.6 billion in exit value year to date (YTD) for limited partner investors, founders, and employees. Those VC-backed initial public offerings (IPOs) also accounted for more than two-thirds of the total United States listings YTD, emphasizing VC’s contribution to the health of public markets.

The VC industry continued to build on the strength of previous quarters as it roared ahead, setting records in Q3, and putting 2021 on track for another record-breaking year for venture investment, exit activity, and fundraising, despite mixed macroeconomic signals and a prolonged pandemic. The growing participation of well-resourced non-traditional investors such as mutual funds, private equity, hedge funds, and crossover investors in the venture space has contributed to the rise in deal size and valuations, reshaping the industry landscape in the process.