Report examines increase in venture capital activity

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According to a recent report by PitchBook and the National Venture Capital Association (NVCA), venture capital activity increased across the ecosystem during the first half of the year.

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The PitchBook-NVCA Venture Monitor, produced in conjunction with Silicon Valley Bank, revealed angel, seed, and early-stage venture capital financings attained record highs and greatly exceeded expectations.

Per the report, venture capital deal activity reached $75 billion invested through 4,302 second-quarter deals in the second quarter; $73.5 billion of new capital was raised by 337 venture funds; and the average fund size in the first half of the year increased to $230.4 million – representing a 21.6 percent year-over-year jump over the 2020 average of $189.5 million.

Pitchbook Founder and CEO John Gabbert said domestic venture investment levels continue to rise as mega-deals become more common and nontraditional investor participation in VC becomes standard.

“As the industry looks toward the second half of the year, investors are evaluating whether this level of dealmaking will persist and what its broader impact might be,” Gabbert said. “The robust exit market of the last 24 months has returned record amounts of liquidity to LPs, and more exits happening across the VC ecosystem is a broadly optimistic sign for the health of the venture market going forward.”

NVCA President and CEO Bobby Franklin said the numbers prove entrepreneurs and startups are helping to strengthen the nation’s economic recovery from the pandemic.

“Americans are innovating and investing more than ever, creating new companies and new jobs at a time when the country needs it the most,” he said.

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