Venture capital investment set showstopping records in 2021. Data from the PitchBook-NVCA Venture Monitor shows venture capitalists invested $341.5 billion in U.S. companies—more than double the 2020 amount, which was also a record year for VC.
U.S. startup investing is primarily concentrated in 10 regions. ScOp analyzed PitchBook data to look further into trends in VC investing across those areas over the first half, or H1, of 2022 and the years leading up to it. These 10 regions are combined statistical areas as defined by the Census Bureau, with the exception of Greater Austin (which is a metropolitan statistical area).
Deal sizes and valuations grew fast. In a roundup of 2021 data, PitchBook analyst Cameron Stanfill said incoming investment from corporate venture capitalists and other nontraditional investors drove the growth. Deals also happened faster through virtual meetings, with companies raising funds more often through expedited due diligence.
So far, 2022 hasn’t been as explosive, but VC activity is still outperforming the years prior to 2021. Startups raised $144.2 billion as of June 30, compared to $158.2 billion raised in the first half of 2021. That still marks a huge increase over $75 billion raised in H1 2020 and $75.4 billion in H1 2019.
Seed-stage investments were particularly strong in Q2 2022, according to the Venture Monitor report summary. Later-stage companies have had to lower expectations amid the stock market drops, which affect their ability to IPO or to determine prices for private funding rounds.