Venture capital investment reaches $ 170 billion in third consecutive quarter

Global venture capital (VC) investment increased in the third quarter after setting a record for the third consecutive time with $ 171.7 billion out of 8,682 deals.

An increased amount of dry powder (highly liquid marketable securities considered to be cash), the involvement of less traditional venture capitalists and exit opportunities have helped the venture capital market to be very healthy, according to Venture Pulse. , a quarterly report published by KPMG Private Enterprise. .

The market posted a record 11 deals over $ 1 billion during this time period, which propelled it to a new high. Global exit activity remained positive with an exit value of $ 292 billion out of 780 transactions in the third quarter of 21, he added.

This helped propel cumulative totals of over $ 1,000 billion, more than double the previous record of $ 468 billion (set in 2020) with a quarter remaining in the year.

Third Quarter Global Venture Capital Highlights

  • Americas venture capital investments hit third consecutive record with $ 94 billion invested in 3,934 deals
  • Venture capital investments in Europe fell to $ 27.5 billion in 1,910 transactions in the third quarter of 21, from $ 36 billion in the second quarter of 21
  • The Asia-Pacific region recorded $ 48.1 billion in venture capital investments in 2,616 deals in the third quarter of 21 – the second highest quarter of venture capital investment after the second quarter from 2018.
  • Global investment in venture capital affiliated with firms hit a record $ 85.5 billion in the third quarter of 21, propelling annual venture capital investments to a record $ 230.7 billion with a quarter remaining in the year
  • Venture capital-backed exit value increased from $ 399.2 billion in Q2’21 to $ 292.4 billion in Q3’21

Third Quarter Indian Venture Capital Highlights

  • India sets all-time record for venture capital invested
  • India posted a record 498 venture capital transactions in the quarter, up from 376 in the previous quarter
  • IPO activity was also very strong in India in Q3’21, with indications that Q4’21 will be even stronger
  • Edtech and Fintech continue to attract significant investment and the attention of Indian investors
  • While payments continued to attract most fintech investment in India, venture capitalists have also shown strong interest in the insurtech space given the low insurance penetration in the country compared to d ‘other jurisdictions around the world.

VCs are after ESG and cleantech, as some of the largest transactions in the world include a cleantech or ESG element. Emerging ESG areas also continued to gain ground in Q3’21, KPMG said.

The outlook is expected to remain healthy after an abundance of capital, fundraising, rapidly maturing venture capital markets around the world and a growing diversity of sectors that have attracted investment.