In 2021, Venture capital dealmaking in the United States reached a new all-time high at nearly $330 billion, boosted by excess liquidity and accommodative monetary policy, according to a report from PitchBook and the National Venture Capital Association.
Venture capital firms increased their bets on technology, biotech, healthcare and fintech sectors, a record 17,054 deals in the year.
It was the best year on record for VC fundraising, which hit $128.3 billion across 730 funds. The figure, which had breached the $100 billion mark for the first time, was $40 billion higher than the previous record in 2020.
Some of the biggest fundraises last year included FTX Trading, valued at $25 billion in October, and AI platform Databricks, which had a valuation of $38 billion in August, each raising $1 billion.
The report said that the frenetic pace of fund raising is expected to continue this year, as cash with venture capital firms remains at an all-time high and returns surpasses all other assets classes.
Nearly 88% of the exits were caused by VC backed companies going public or being bought out in 2021, which was worth $774.1 billion. Special purpose acquisition companies have offered a viable alternative to IPOs despite tighter regulatory scrutiny, while the US initial public offering continued on a tear.