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In 2021’s Q1, Venture-backed Companies of U.S Hits $64 billion

The 1st quarter of 2021 has proved itself to be a blooming year for the venture fundings as it broke the record of the troublesome year of pandemic and became the new Chart Burster of the Venture Funding world.

In the first three months of 2021(Q1), a total of 64 billion dollars were collected by the venture backed companies, as per the report of Ernst & Young. This shows the victorious growth, value and importance of venture funding in the US market. 

The primary months of the year started with the eruption of capital by the investors into the brokerages, food delivery companies and the American spacecraft manufacturer corporation of Elon Musk, SpaceX. 

2021’s Q1 Broke the Record of Pandemic Year’s Venture Funding

The venture based companies’ Q1 raised value is $64 billion which was equal to 43% of total fundings of 2020. 

The US venture capital leader at Ernst and Young, Jeff Gabrow said in an interview that they are trying to come out of the technical pandemic situation, which was not freed from its effects. 

He added that last year, everybody thought that venture funding will plunge off slowly but to have a chalk up quarter like this, is really incredible. 

According to Jeff, they are clearly on the path of attaining a $100 billion in venture funding for a consecutive 4th year but the main question for now is, “will there be a $200B year?”

If we talk about 2020, then the first two quarters were quiet because of the covid-19 and companies are on their planning modes that were changing to deal with the restrictions and rules of the pandemic. But then, they noticed the historic 2nd half of the quarter, which alone makes the $1.48 billion as a record. Snowflake, Airbnb and DoorDash are among some of the companies that give the required offerings.

Venture Deals of 2021’s Q1

As informed by Jeff Gabrow, a total of 183 deals were done in the first quarter of 2021, which are at least $100 million and this is more than half of the whole amount of last year. 

In January, the biggest deal encountered in this prestigious Q1 was done by the iconic autonomous car company of cars, the Cruise, which was a $2 billion financing corporate round dominated by Microsoft in a strategic agreement with the majority owner of Cruise, General Motors. 

In March, consumer goods and food delivery company, Gopuff secured $1.5 million and marked as the 2nd largest deal of the quarter. 

Then comes the Databricks company, the vendor of cloud data analytics software and Robinhood, the investing app, both raised $1 billion amount equally.

The Space Exploration Technologies Corporation of Elon Musk, SpaceX has also been in the race and raised the largest sub billion dollars of this quarter, which is $850 million that hiked the company’s valuation to $74 billion. 

The robotic process automation software developer of New York, UiPath raised $750 million and the Boston based Thrasio also took part by raising $750 million.

Among top venture companies, the Irish-American payment software company, Stripe is no way behind anyone and raised $600 million at a valuation of $95 billion. 

Gabrow said that the market now has a lot of uplifting and enthusiasm as people have believed that they are now out of the pandemic era. He added that the technology enablement and digitalization of industries has been elevated to a greater degree or we can say that it has been put on steroids. 

Jeff Gabrow also explained why venture funding is called venture, he said that it is called venture for a reason as they are the high yielding situation which entails high risks. 

Conclusion

Venture funding of 2021’s Q1 has broken the record of 2020’s whole venture funding as it has scored $64 billion in Q1 of 2021. Several companies raised large amounts of capital and the top scorer among them is the San Francisco based autonomous car company, Cruise which has raised $2 billion. 

FAQs

How much capital raised in venture funding by US venture companies?

$64 billion.

Which company raised the highest capital?

The Cruise.

In how much time the record of 2020 was broken?

In quarter 1.

How much was raised by Cruise?

$2 billion.

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