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Early-stage funding rounds

Global VC funding landscape dominated in Q4 2020,

Early-stage funding rounds

Despite the COVID-19 pandemic, venture capital (VC) investors continued to show confidence in promising start-ups in Q4. Early-stage funding rounds (comprising Seed and Series A funding rounds) continued to dominate the global VC funding landscape in terms of deal volume during the quarter, according to GlobalData, a leading data and analytics company.

In total, 1,050 Seed and 939 Series A funding rounds were announced during Q4 2020, which collectively accounted for 70.8% of the total deal volume.  In contrast, other funding rounds such as growth/expansion/late-stage funding rounds* collectively accounted for less than one-third of the total deal volume.

The total number of deals with disclosed funding rounds announced during the last quarter of 2020 stood at 2,809 while the growth in a deal volume kept fluctuating during the three months of the quarter. Deals count decreased by 12.8% from 1,017 in October to 887 in November before increasing by 2% to 905 in December. Despite the fluctuating trend, the share of early-stage funding rounds remained around 70% during all the three months in Q4 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, says: “Despite volatile market conditions, promising start-ups have been able to attract early-stage funding rounds. This is also a positive indicator for the start-up ecosystem as investors are still seeing opportunity in innovation during these challenging times.”

Global VC deal volume
Global VC deal volume

While most of the funding rounds’ share as a proportion of total deal volume kept fluctuating during the three months of Q4, the share of Series D funding rounds witnessed consistent growth from 2.7% in October to 2.8% in November and 3.9% in December.

* Comprising Series B, Series C, Series D, Series E, Series F, Series G, Series H, and Series J funding rounds

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