風(fēng)險(xiǎn)投資的未來(lái)：獨(dú)立資本家和全球風(fēng)險(xiǎn)投資公司攫取更大的股份-SVB-20220930

Capitalinvestmentshatterspriorannualrecordwith$238.7billionYTDPage5Exitvaluesurpasses$500billionforthefirsttimeeverPage31VCfundraisingbreakspreviousyearlyrecord,ontracktoclear$100billionbyyear'sendPage33ThedefinitivereviewoftheUSventurecapitalecosystem^3H^pitchBook.nvsa ^3H^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR^3H^pitchBook.nvsa ^3H^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORContentsExecutivesummary3ContentsExecutivesummary3NVCApolicyhighlights4Overview5Angel,seed,andfirstfinancings7Early-stageVC9Late-stageVC11Regionalspotlight15Dealsbysector16SVB:ThefutureofVC20Affinity:Relationshipintelligence22Venturedebt25Femalefounders27Nontraditionalinvestors29Exits31Fundraising33Methodology35Credits&contactPitchBookData,Inc.JOHNGABBERTFounder,CEONIZARTARHUNISeniorDirector,InstitutionalResearch&EditorialRESEARCHCAMERONSTANFILL,CFASeniorAnalyst,VCKYLESTANFORD,CAIASeniorAnalyst,VCJOSHUACHAO,Ph.D.SeniorAnalyst,VCpbinstitutionalresearch@DATAALEXWARFELDataAnalystReport&coverdesignbyMEGANWOODARDandDREWSANDERSNationalVentureCapitalAssociation(NVCA)BOBBYFRANKLINPresident&CEOMICHAELCHOWResearchDirector,NVCAandVentureForwardSABRINAFANGVicePresidentofCommunicationsandMarketingContactNVCAnvca@SiliconValleyBankGREGBECKERChiefExecutiveOfficerMICHAELDESCHENEAUXPresidentSUNITAPATELChiefBusinessDevelopmentOfficerROBFREELENHeadofVentureCapitalRelationshipManagementContactSiliconValleyBventuremonitor@AffinityRAYZHOUCo-Founder,CEOSHUBHAMGOELCo-FounderANDREWMILLERDirectorofContentMarketingContactAffinityaffinity.coinfo@affinity.co2^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR網(wǎng)PitchBook 網(wǎng)PitchBook PIVD388affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORExecutivesummaryEighteenmonthsintotheCOVID-19pandemic,theVCindustryhascontinuedtoproveitsresiliencywhilealsodirectlysupportingthecountry,seconomicrecoveryandstrengtheningpublicmarkets.VC-backedpubliclistingshaveeclipsedpreviousannualrecordsandgenerated$513.6billioninexitvalueYTDforlimitedpartnerinvestors,founders,andemployees.ThoseVC-backedIPOsalsoaccountedformorethantwo-thirdsofthetotalUSlistingsYTD,emphasizingVC'scontributiontothehealthofpublicmarkets.TheVCindustrycontinuedtobuildonthestrengthofpreviousquartersasitroaredahead,settingrecordsinQ3andputting2021ontrackforanotherrecord-breakingyearforventureinvestment,exitactivity,andfundraising,despitemixedmacroeconomicsignalsandaprolongedpandemic.$82.8billionincapitalwasdeployedacross3,518dealsinQ3,followingsimilarlystrongperformanceduringQ1andQ2,leadingtoatotalof$238.7billioninvestedYTD.Investmentactivitywashealthyacrossangel&seed,early,andlatestageswithdealsizeincreasingforthelattertwo,continuingalong-termtrend.$49.5billionwasinvestedinmega-rounds($100million+),bringingtheYTDtotalinvestedinmega-roundsto$136.5billion,nearlydoubletherecord$76.7billioninvestedin2020.Thegrowingparticipationofwell-resourcednontraditionalinvestorssuchasmutualfunds,PE,hedgefunds,andcrossoverinvestorsintheventurespacehascontributedtotheriseindealsizeandvaluations,reshapingtheindustrylandscapeintheprocess.$187.2billioninexitvaluewasrealizedinQ3,contributingtoatotalof$582.5billionYTD—already101.6%higherthan2020'srecordof$289.0billion.IPOsarehavingablockbusteryearwith221occurringYTD.Amongsectors,softwareexperiencedboomtimesinQ3with156exits—followingearlierquarterlyrecordsof163and171exitsforQ1andQ2,respectively.Thisrisingtidealsoappearstobeliftingboatsforfemalefounders,whohaverealized$57.7billioninexitvalueYTD,nearlydoublethepreviousannualhighof$24.1billionin2020.AsforSPACs,413vehiclesraisedacombined$109.4billionthroughQ3,andmergerscontinuetooccur,althoughthebroadselloffsinceFebruaryandunderperformancebymanySPACcombinationsraisequestionsconcerningtheviabilityofthesevehiclesasalongtermalternativetoIPOs.ReturnsgeneratedfromhighexitvaluesinrecentquartershaveenabledlimitedpartnerstoputcapitalbacktoworkvianewVCallocations,which,coupledwithrisingdealsizes,ensuredthatfundraisingamongventurefundsremainedstrongwith$96.0billionraisedthisyear,alreadyanannualrecordhigh.ConcentrationofcapitalcontinuestotrendasmorecapitalisbeingraisedbyasmallernumberofVCfunds.Mirroringthegrowthindealsize,averagefundsizereachedarecordof$194.7millionYTD,eclipsingthepreviousrecordof$165.9millionin2020.Alreadyin2021,19fundsof$1billionormorehavebeenraised—morethaninanypreviousyear.These19fundstogetherrepresentsome$38.7billionincapital,or40.4%ofallfundsraisedYTD.However,newfundmanagershavenotwitnessedthesameboomincapitalcommitments.Thedeclineinfirst-timefundraising,bybothfundcountandcapitalraised,hascontinuedin2021.Ifthereareanycloudsonthehorizonfortheindustry,theymaycomeintheformoftheevolvingpandemic,aswellaseconomicandpolicyuncertainty.ThespreadofthehighlycontagiousDeltavarianthasmadethetrajectoryofthedomesticCOVID-19outbreakuncertaindespitehealthylevelsofvaccinationinpartsofthecountry.Andwhilepositivemacroeconomicsignalshavebroughtsomeoptimism—realGDPgrewatanannualrateof6.6%inQ2,andtheunemploymentratehasfallento4.8%—sixmillionfewerworkersremainemployedcomparedtothistimelastyear,employersaregrapplingwithsupplychaindisruptionsandworkershortages,andinflationisrunningata30-yearhigh.Policychangesarealsolooming.Trillion-dollarspendingpackagesmakingtheirwaythroughCongresscouldcontainprovisionsthatchangethetaxcodeinwaysthatmayalterinvestorbehaviorandalignmentofinterest,influencinginvestmentdecisionsgoingforward.Aswell,taperingofassetpurchasesbytheFederalReservecouldimpactinterestratesandvaluationsinthepublicmarkets,whichwouldhaveimplicationsforexitactivity.HowtheseuncertaintiesareresolvedinQ4shouldmakeforanexcitingbookendtoanotherhistoricyearforVC.3

NVCApolicyhighlightsLegislativeactivityinDCisfocusedonimplementingPresidentBiden'spolicyagenda:abudgetreconciliationpackagebeingconsideredonaparty-linebasisandtheBipartisanInfrastructureFramework.OneofthecentralstrategiesoftheAmericanJobsPlanistouseincreasedinnovationactivitytomakeprogressonthreecriticalsocietalchallenges:climatechange,accesstoeconomicopportunity,andcompetitionwithChina.ToachievePresidentBiden'svision,theplanwillneedtheactiveparticipationofthestartupecosystem,includingtheventurecapitalcommunity.NVCAismakingthecaseinWashingtononhowtheprogramsintheselegislativepackagescanbridgethelab-to-marketdivideanddeliverjobsandinnovationtotheAmericanpublic.Atthesametime,wearewarningagainstthecounterproductiveconsequencesofmisguidedtaxpolicy,suchasproposalstoincreasetaxesoncarriedinterestcapitalgains.Belowisabreakdownoftheissuesonwhichwearefocused.CapitalgainstaxpolicyinreconciliationpackageLegislativeactivityinDCisfocusedonimplementingPresidentBiden'spolicyagenda:abudgetreconciliationpackagebeingconsideredonaparty-linebasisandtheBipartisanInfrastructureFramework.OneofthecentralstrategiesoftheAmericanJobsPlanistouseincreasedinnovationactivitytomakeprogressonthreecriticalsocietalchallenges:climatechange,accesstoeconomicopportunity,andcompetitionwithChina.ToachievePresidentBiden'svision,theplanwillneedtheactiveparticipationofthestartupecosystem,includingtheventurecapitalcommunity.NVCAismakingthecaseinWashingtononhowtheprogramsintheselegislativepackagescanbridgethelab-to-marketdivideanddeliverjobsandinnovationtotheAmericanpublic.Atthesametime,wearewarningagainstthecounterproductiveconsequencesofmisguidedtaxpolicy,suchasproposalstoincreasetaxesoncarriedinterestcapitalgains.Belowisabreakdownoftheissuesonwhichwearefocused.CapitalgainstaxpolicyinreconciliationpackageThereareanumberoftaxincreasesoncapitalgainsandotherincomeincludedintheHousereconciliationpackage.Thetopcapitalgainsratewouldbeincreasedto28.8%;therewouldbea3%surtaxonallincomeearnedover$5millioninagivenyear;thecarriedinterestholdperiodwouldbemovedfrom3to5years(withmajordraftingissues);andQualifiedSmallBusinessStock(QSBS)soldafterSeptember13wouldbelimitedtoa50%exclusionfromcapitalgainstaxes,asopposedto100%undercurrentlaw.WeareheavilyengagedinfixingtheissuesintheHousecarriedinterestprovisionandfightingagainstSenateFinanceCommitteeChairmanRonWyden's(D-OR)AUMtaxproposal;engagingonQSBS;andworkingtomakesurethatthecapitalgainsrateincreasedoesnotgofurther.OtherprogramsinthereconciliationpackageThetaxissuesrepresentanexistentialthreattothestartupecosystem,butthereareotherpromisingproposalsinthereconciliationpackageforwhichNVCAhasadvocated.Theseinclude:Providingadirectpaymechanismforthecleanenergytaxcreditsandaddinganewenergystoragecredit.Committing$7.5billionforNationalScienceFoundationresearchgrants,technologycommercializationsupport,andscholarships.Creatinganewmicro-smallbusinessinvestmentcompany(SBIC)program.Earmarking$30billionforworkforcedevelopment,includingfortechnologyskills.BipartisanInfrastructureFrameworkTheBipartisanInfrastructureFrameworkincludesdozensofprogramstoincorporatetechnologyintoarangeofinfrastructure-relatedsystems,accelerateresearchandtechnologydemonstrationprojects,andreshoreadvancedtechnologymanufacturing.Examplesinclude:A$7.5billionprogramtobuildoutalternativefuelrecharginginfrastructurethatincludestheacquisitionofchargingandstoragetechnology.A$1billionprogramtoaddresscybersecurityrisksandthreats.A$3billioncommitmenttotheSmartGridInvestmentMatchingGrantProgramtosupportthedeploymentoftechnologiesthatenhanceelectricgridflexibility.Wewillcontinuetoidentifyanypoliciesthatmayunintentionallyexcludestartupsandgrowthcompanies.Shouldeitherbillbecomelaw,variousfederalagencieswillberesponsibleforimplementation,includingwritingtherulesthatwillstanduptheprograms.Toachievelegislativeobjectives,programrulesandprocurementprocessesmustemphasizethemostpromisingandbesttechnologies.Theymustbeclearandtimelytofitwithcommercialpracticesandprovidealevelplayingfieldfortechnologiesdevelopedwithequityfinancing.Otherpolicyissues:Antitrustandacquisitionrestrictions:MultiplebillsintroducedinCongresswouldnegativelyimpactlargercompanies'abilitytoacquireventure-backedcompanies.Thebillsarepartofalargerefforttolimitthesizeandinfluenceoflargetechnologycompanies.NVCAopposedthePlatformCompetitionandOpportunityAct,whichwouldeffectivelybanacquisitionsbyafewlargetechnologycompaniesandthereforeharmstartupsthatseeanacquisitionastheirbestopportunity.Thebillultimatelypassedthecommitteeonafracturedvote,butdissentionbykeycommitteemembershassentastrongsignalthatthebillshouldnotbeconsideredbythefullHouse.OurattentionisnowfocusedontheSenateandeducatingitsmembersoftheimportantroleacquisitionsplayinthestartupecosystemandwhycertainproposalsareharmful.StartupVisa:NVCAwasthrilledtoseeRep.ZoeLofgren(D-CA)introducetheLetImmigrantsKickstartEmployment(LIKE)Act,whichwouldestablishaStartupVisa.TheLIKEActwouldcreatebothanonimmigrant(temporary)andimmigrantvisa(permanent)forforeign-bornfounders.Italsoestablishesanonimmigrantvisaforessentialstartupemployeestoensureyoung,high-growthcompaniescanattracttoptalenttogrowtheircompaniesintheUS.NVCAhaslongbeentheleadingorganizationinsupportofaStartupVisa,andwearemakingthecaseonCapitolHillforwhyRep.Lofgren,slegislationisneeded.Thenextseveralmonthsofpolicymakingwillbeincrediblyimpactfulforthefutureoftheventureindustry.NVCAwillkeepawatchfuleyeforproposalsthatwouldharmourecosystemandworkcloselywithpolicymakerstogrowourinnovationeconomy.-BobbyFranklin,President&CEOoftheNationalVentureCapitalAssociation(NVCA)4^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOROverviewCapitalinvestmenthitsnewrecordthroughjustthreequartersUSVCdealactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Explosionofmega-dealsreachesnewlevelUSVCmega-dealactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Explosionofmega-dealsreachesnewlevelUSVCmega-dealactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Demandformega-dealspersists,whichhashelpedbolstercapitalinvestmenttotals.In2021YTD,597USVCdealsatorover$100millionhaveclosed,207ofwhichwereinQ3alone.Theseoutsizeddealshavebeguntodriveasignificantmajorityofcapitalinvestment—57.2%in2021—makingthesedealsseemessentiallycommonplaceinthecurrentmarket.NontraditionalinvestorscontinuetodoubledownonVCinvesting,alreadysurpassingpreviousyearlyhighsthroughthreequartersof2021.Thecapitaltheseinstitutionsbringtotheventureecosystemhasdrivencapitalinvestmenttrends,andmorethan76.9%ofthetotalcapitalamountthathasfounditswayintocloseddealsthisyearhasbeenwithinadealreceivingnontraditionalinvestorbacking.5NontraditionalparticipationratesremainnearrecordhighsDealswithnontraditionalinvestorparticipationasshareofoverallUSVCdealcountOpenIPOwindowandSPACcombinationscontributetostrongyearforpubliclistings30%25%15%20%25.9%25.1%?10%5%16.6%14.3%? 10.6%11.2% 10.7%8.4%1.0%1.1%0%I CN 8I I Io o oCN CN CN寸 LO 9 卜 CO 6 。X_I X_I X_I X_I X_I X_I Cxio o o o o o oCN CN CN CN CN CN CN*—CNOCN CVCinvestor PEinvestorAssetmanager Government/SWFOthertouristinvestor2016 2017 2018 2019 2020 2021■Buyout■Publiclisting■AcquisitionPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Dramaticincreaseinimpactcapitalraisedseenin2021USVCimpactfundactivityPitchBook-NVCAVentureMonitorPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Dramaticincreaseinimpactcapitalraisedseenin2021USVCimpactfundactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021PitchBook-NVCAVentureMonitor*AsofSeptember30,2021Exitvaluesmashesthroughthe$500billionlevelinasingleyear.Mostofthistotalexitvaluehasbeendominatedbypubliclistings,whichaccountedfor88.2%oftotalexitvaluewith$513.6billion.AnopenIPOwindowandincreaseinSPACbusinesscombinationspushedtheQ3publiclistingtotalto93,makingitthemostactivequarteroftheyearsofar.Asgreateruncertaintyaboutthefuturecreepsintofinancialmarkets,thereseemstobeasenseofstrikingwhiletheironishotintheIPOmarketasthevolumeofnewlistingscontinuesathistoricallyhighlevels.FundsadapttocompeteinthecurrentVCenvironment.Ashasbeenthestorywithexitsanddealvaluein2021,biggercontinuestobebetter.Outsizedfundsstilldominatethefundraisinglandscape.Sofar,arecord19$1B+fundshaveclosedin2021.Interestingly,onlyoneofthose$1B+fundclosedinQ3—IVP'sFundXVIIat$1.8billion.Withthesustainedrobustfundraisinglevelsoflate,it,sentirelypossiblethatLPsarehittingtheupperlimitsoftheirallocationtoventureandfundraisingcouldpotentiallysloworplateauincomingquarters.6網(wǎng)PitchBook 網(wǎng)PitchBook PIVD388affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR網(wǎng)PitchBook 網(wǎng)PitchBook PIVD388affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORAngel,seed,andfirstfinancingsAngelandseedmoreactivethaneverUSangelandseeddealactivity2018201120132014201520162017201920202012Angeldealvalue($B)Seeddealvalue($B) Angeldealcount Seeddealcount2,5841,783$8.6$2.72021*PitchBook-NVCAVentureMonitor*AsofSeptember30,2021SofarthroughQ3,angelandseedactivityhasnearlyreachedanestimated5,000completedfinancingsandsurpassed$11billionindealvaluefortheYTD.Thosefiguresalreadyapproachrecordfull-yeartotals.DealcountshavegrowneachquartersinceQ2oflastyear—despiteheighteneduncertaintyinthewakeofCOVID-19.Theoutlookforangelandseedinvestmentsalsocontinuestoshinebright.Morethan$2.7billionhasalreadybeenputintoangelinvestments,matchingthehighestyearlytotalsofthepastfiveyearsandshowcasingthatwealthyindividualscontinuetohaveastrongappetiteforriskycompanies.Inaddition,240micro-funds(under$50million)havealreadyclosedthisyear,putting2021oncourseforanewrecordinthiscategory.EstimatesputQ3atrecorddealcountUSangelandseeddealactivity$5$4$3$2$1$01,5001,0005000Q1Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q32016 2017 2018 2019 2020 2021Dealvalue($B) Dealcount?Estimateddealcount2,000Thetrendoflarge,multi-stageinvestorsgettinginvolvedsoonerintheventurelifecyclehasalsomovedfromhyperboliccommentarytoasolidifieddatapoint.DuringQ3,bothAndreessenHorowitzandGreylockannouncednewseed-focusedfundsof$400.0millionand$500.0million,respectively.Whileseedinvestmentsaren,tanewstrategyforthesefirms—a16zparticipatedin20seeddealsin2020,andGreylockparticipatedin6—thesizeofthesededicatedseedvehiclesaremuchlargerthan

typicalseedfunds,whichwillgivethesefirmswideflexibilitywhenitcomestothenumberofportfoliocompaniesinwhichtheyinvest,aswellasthesizeandvaluationoftheirdeals.Neitherofthesefirmsarelikelytohavetroubleattractingtargetcompaniesatanystagethroughoutventure.Butasthelateandgrowthstagesbecomemoreand

PitchBook-NVCAVentureMonitor*AsofSeptember30,2021morecrowdedwithnontraditionalcapitalandvaluationscontinuetorise,movingtosecuringstakesintopcompaniesasearlyaspossiblecanhelpdrivereturns.Launchingaseed-stagefundisalsoadiversificationstrategytoattractnewLPs,oratleastprovidedifferentiatedriskprofilesacrossfundstoexistingbackers.7^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR^pitchBook.nvsa ^pitchBook.nvsa 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITOR?PitchBooic?PitchBooicnvsa 88affinity SiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORGreylockstatedthatitsseedfundwouIdinvestindealsupto$20million,aheftysumforanyseed-stagecompany.1In2021therehavebeen28seeddealsofthissizeorlarger,morethananyprioryear.Thesehavehelpedpushtheaverageseeddealto$3.8million,amorethan20%hikefromlastyear,srecordhigh.Valuationsatseedhavealsobumpedupfromthepreviousrecordhighs.ThroughQ3,medianseed-stagepre-moneyvaluationshavehit$9.0million,wellabovethe$7.0millionvaluationfromlastyear.Wehavekeptacloseeyeonfirstfinancingsthroughoutthepandemic,relyingonthedatatoshowthenumberofcompaniesenteringtheVClifecycle.Thisyeartherehavealreadybeenmorethan3,000oftheseinvestments,andlaggeddatacollectionwilllikelyshowthatcloserto3,500first-timefinancingshavebeencompletedthroughQ3.Evenwhenlookingatfull-yeartotals,thislevelhasonlybeensurpassedfourtimessince2006.ThehealthypipelineofcompanieswillbemetwitharecordamountofdrypowdercurrentlycontainedinUS-basedventurefunds.SeedgrowthsteadySeedgrowthsteadyQuartiledistributionofseeddealsizes($M)SpreadinangeldealsizesgrowingQuartiledistributionofangeldealsizes($M)$2.5$2.0$1.5$1.0$0.5$0.0$1.5$1.3$0.5$0.2$2.0$1.6$0.6$0.2IIoCNCNIoCN寸V—IoCNIoCNIOCNCOIoCN6IOCN*ICNoCN Median25thpercentileMedian25thpercentileAverage 75thpercentileAverage 75thpercentilePitchBook-NVCAVentureMonitorPitchBook-NVCAVentureMonitor*AsofSeptember30,2021PitchBook-NVCAVentureMonitor*AsofSeptember30,2021Averageangelvaluationspikesin2021Quartiledistributionofangelpre-moneyvaluation($M)SeedvaluationsgrowacrossallquartilesQuartiledistributionofseedpre-moneyvaluation($M)$30$26.3$25$20$15$10$0$5$15.0$10.0、$9.1$5.0$2.5$6.1$3.0$16$14$12$10$8$6$4$2$0$15.0mCN6VHOZ

co￡

EON

SON

mN

3OZ勺￡6TON僅。ZSONmzEON■nozMedianMedian 25thpercentile Median25thpercentileAverage 75thpercentileAverage 75thpercentilePitchBook-NVCAVentureMonitor*AsofSeptember30,2021PitchBook-NVCAVentureMonitor*AsofSeptember30,2021*AsofSeptember30,20211:"$500MforSeeds:GreylockRaisesLargestPoolofCapitalDedicatedtoDayOneInvestment,"GreylockPartners,September13,2021.8

Early-stageVCNewrecordssetonbothacountandvaluebasisUSearly-stageVCdealactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Q3eclipsesthe$15billionmarkforonlythirdtimeeverDealvalue($B) DealcountNewrecordssetonbothacountandvaluebasisUSearly-stageVCdealactivityPitchBook-NVCAVentureMonitor*AsofSeptember30,2021Q3eclipsesthe$15billionmarkforonlythirdtimeeverDealvalue($B) Dealcount?EstimateddealcountPitchBook-NVCAVentureMonitor*AsofSeptember30,2021TheearlystageshowedexceptionalsignsofstrengthinQ3asthequarternotched$19.7billionofdealactivityacrossanestimated1,542deals,bringing2021'sYTDtotalto$54.7billionacross3,996deals.Thisphenomenalcadenceofdealactivityinthefirstninemonthsof2021hasalreadysurpassed2019'sfull-yeartotal—theprevioushigh-watermark—onbothacountandvaluebasis.Q3'searly-stageVCdealvaluetotalisalsoonlythethirdquarteronrecordtoeclipsethe$15billionmark.ManyVCinvestorsarguethatventureisundergoingafundamentalshiftwhenitcomestodealsizesandvaluations.Theacceleratedpaceofinvestmentshasspurredfrenziedcompetitionamonginvestorstoidentifyandfundpromisingearly-stagestartups.Furthermore,therisingprevalenceofcrossoverinvestorscomingearlierintheventurelifecycleinthelast9-12monthshaspusheddealsizesupwardsandskewedthedistributionofdealsizestowardthelargerend.Nearlyhalf—49.6%—ofallearly-stageVCdealsin2021exceeded$10million,bringingtheYTDmedianandaverageearly-stageVCdealsizeto$10.0millionand$20.6million,respectively.Tonote,arecord44early-stagemega-deals(thoseatorexceeding$100million)werecompletedinQ3,bringing2021'sYTDtotalto104.Thisisasignificantjumpfromthepreviousfull-yearrecordof61early-stagemega-dealsin2020,showingsignsoftheinflationarypressureindealsizesfromtheabundanceofcapitalwithinventure.Crossoverandothernontraditionalinvestorstendtobelessprice-sensitivethantraditionalVCsandofferlessstringentdealterms,oftennoteveninsistingonaboardseat.Thishasfurtherblurredthelinesbetweenthetraditionallydistinctseed,early,andlatestagesasvaluationmultipleshaveskyrocketedtodizzyingheights.Sofarin2021,theYTDmedianandaverageearly-stagepre-moneyvaluationshavehitnewrecordsof$45.0millionand$109.1million,respectively,withsharpincreasesobservedacrossallquartiles.Furthermore,Q3sawarecord-tying11early-stageVCdealscompletedatunicornvaluations(thoseatorexceeding$1billioninpost-moneyvaluation).Thisbrings2021'sYTDtotaltoarecord-setting23early-stageunicorntransactions,besting2020's13and2019's12financings,thenext-besttwoyearswithinourdataset.Becausefounderscanbuildandgrowmorewhilebootstrappedthaninprioryearsduetotheubiquityofcloudcomputing,non-dilutivefundingsources,andotherthird-partyresources,startupsseekingearly-stagecapitalarepresentingstrongermetricsandareabletoachievegrowthearlier,thusdrawingsignificantlyhighervaluations.9S3I?PitchBoolc n\ca S3I?PitchBoolc n\ca 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORS3I?PitchBoolc n\ca S3I?PitchBoolc n\ca 88affinitySiliconValleyBankQ32021PITCHBOOK-NVCAVENTUREMONITORQ32021PITCHBOOK-NVCAVENTUREMONITORNearlyhalfofall2021dealsexceeded$10millionUSearly-stageVCdealcountbysize

Over90%ofdealvalueattributedtodealsexceeding$10millionUSearly-stageVCdealvalue($)bysize?$25M+90%80%70%60%50%40%30%20%10%0%■$10M-$25M■$5M-$10M■$1M-$5M■$500K-$1M■Under$500K?$25M+90%80%70%60%50%40%30%20%10%0%■$10M-$25M■$5M-$10M■$1M-$5M■$500K-$1M■Under$500K勺CNOCNwz6V-I0ZmCN勺CNOCNwz6V-I0ZmCNPitchBook-NVCAVentureMonitorPitchBook-NVCAVentureMonitor*AsofSeptember30,2021PitchBook-NVCAVentureMonitor*AsofSeptember30,2021Mega-dealspushthemedianandaveragedealsizetonewheightsQuartiledistributionofearly-stageVCdealsizes($M)

SharpriseinvaluationsseenacrossallquartilesQuartiledistributionofearly-stageVCpre-moneyvaluations($M)$25$20$15$10$5$0$22.5$120$100$80$20$0$109.1$100.0$60$40$68.5$60.0$45.0$3°.°$25.0$