Now in the opening weeks of the third quarter, The Exchange is taking a look back at the Q2 2021 venture capital market. Data indicate that it was incredibly active, with global and regional records shattered during the three-month period.
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Per data from CB Insights, for example, The Exchange reported that global venture capital activity shot to $156 billion in the second quarter, up 157% from the year-ago Q2 result of just under $61 billion. More unicorns were born in the second quarter than any similar period to date, and valuations ticked higher. The only data that seemingly didn’t come back in superlative fashion was round counts, which failed to set all-time highs in some cases. But the general vibe of Q2 venture capital data was clear: It’s a great time for startups looking to raise capital. To better understand what’s going on, we talked to investors from different regions to get a grip on how they view their market. Today we’re discussing the U.S. startup world, including notes from Costanoa Ventures’ Amy Cheetham, MaC Venture Capital’s Marlon Nichols, NEA’s Vanessa Larco, and EY U.S. venture capital lead Jeff Grabow. Why are investors writing so many checks? Let’s find out.