Despite the pandemic, venture capital investment pushed plenty of money into startups in 2020. Moving forward, the experts predict global venture capital investment market to exhibit strong growth during the period 2020-2025. Venture capital investment is gaining popularity as it provides above-average returns to investors and helps in encouraging progress.
At present, the market is experiencing growth on account of the growing number of startups, in confluence with the increasing investments from mutual funds and banking institutions in venture capital. Apart from this, the expanding investment activities in diverse industry verticals, such as healthcare, biotechnology, agriculture, and media and entertainment, are also strengthening market growth. Furthermore, venture capitalists are utilizing algorithms and machine learning (MI) for identifying startups with a higher growth potential to make better investment decisions. However, the market growth is under impact by the global spread of the coronavirus disease (COVID-19) and consequent lockdowns imposed by governments of many countries.
Therefore, various organizations and their operational activities have come to a sudden standstill. Because of this, venture capitalists are modifying their plans to survive the rapidly changing market conditions.
While investment slowed down dramatically in the spring, VCs invested $36.5 billion in the third quarter of 2020, a seven-quarter high. Global VC funding rises over 40% in Q3’20 compared to Q2’20, with Asia seeing the largest gains. Funding to startups in Asia increases by 74% while jumping 29% in Europe and North America in Q3’20 versus Q2’20.
Venture Capital Deals
Here are venture capital deals that shed some light on what 2021 might look like-for entrepreneurs, their customers, and their backers. Cityblock Health has a new approach to health care for underserved urban populations. Cityblock’s $160 million Series C funding round and a valuation of over $1 billion. As Dr. Toyin Ajayi, Cityblock Health co-founder said, Cityblock’s goal is better healthcare outcome for marginalized communities that can also be aligned with driving down healthcare costs and driving waste out of the system.
Much of the technology meant to make us more informed and productive seems to have the opposite effect. A recent report found that the average employee regularly uses eight software apps while doing their job. That helps explain the appeal of Notion, one of the leaders of a pack of productivity software startups. Notion brings multiple apps and software together in one place, in an attempt to make it easier for employees to find the information they need when they need it. The $50 million round valued Notion founded in 2013, at $2 billion.
Another venture capital investment attracted by Textio raised $12 million to help take bias out of business communications. That problem is likely to persist well into the next decade. Most people have a hard time to learn what language will attract a diverse pool of candidates and what language will repel them. That is where Textio comes in: helping employers write job postings and other documents that are inclusive.