Surprising Q3 Venture Capital Funding Trends šŸ’µ
In spite of COVID19, VC investments into US-based companies hit a 7-quarter high in Q3:20 at $36.5B, up 22% year-over-year.

The numbers just came in and it looks like the pandemic hasn't impacted VC funding as negatively as many expected.

BUT founders beware:
ā€” MOST of this money (54%) went to mega-rounds and late-stage deals (not founders raising their first round).
88 US-based companies raised rounds worth $100M or more in Q3:20.
Top 3 largest rounds:
SpaceX ($1.9B), Epic Games ($1.5B), Affirm ($500M)

Investors can't sit on their capital indefinitely, so to mitigate the risk they are putting money into existing deals instead of taking a chance on new founders.

The good news:
Seed-stage deals are slowly recovering after their sharp drop since the pandemic started (Q4:19).
We're seeing a rise for the second consecutive quarter.

Investments in a few verticals are booming:
Healthcare, Aerospace & Defense, Gaming, SaaS, FoW

If you are currently fundraising, what "market signals" are you seeing? Does your pitch have a long-term COVID plan?

#startups #VC #funding
Credit: CB Insights