When the pandemic hit the U.S. earlier this yr and tech corporations started shedding 1000’s of workers, analysts warned of a bumpy journey forward for startups and enterprise capital funding.
To say the business stabilized can be an understatement.
New This fall numbers from the most recent PitchBook-NVCA Venture Monitor present that U.S. startups broke one other file in 2020, reeling in $156.2 billion, topping the earlier mark set in 2018 ($142.7 billion) and final yr’s complete ($138.1 billion).
“Tragic because the pandemic has been, it has created a world must re-think and re-set many practices and behaviors,” Joe Horowitz, managing normal accomplice at Icon Ventures, stated in a press release. “This has spurred important demand for brand spanking new modern options and a digital acceleration, fueling the tempo of enterprise capital funding.”
There were also records set last year for capital raised by VC funds, and a near-record for VC-backed exit value with a strong IPO market. That should mean continued momentum heading into 2021 as investors have “dry powder” to put to work, said Bobby Franklin, president and CEO of NVCA.
Deal count dropped slightly year-over-year while a record 321 mega-deals ($100 million or more) closed in 2020. Angel and seed-stage financings remained stable year-over-year for both deal value and deal count, despite potential concern with trying to raise early-stage money over video chat.
“If investors continue to use teleconferencing software to source, diligence, and invest in nonlocal companies, a large amount of capital could be unlocked for businesses headquartered outside of traditional investment hubs,” PitchBook noted in its report.
Enterprise capital buyers sunk $946 billion throughout 54 offers within the Pacific Northwest through the fourth quarter, in response to GeekWire’s tally, derived from our working record of Pacific Northwest startup investments. That follows $1.1 billion raised within the third quarter, and a sturdy first half of 2020 for Seattle and the broader Pacific Northwest startup ecosystem.
Funding totals from 2020 as an entire for the area got here in at $four.four billion, up 15% year-over-year.
The Pacific Northwest tech ecosystem continues to blossom, because of each fast-growing startups — together with an rising variety of unicorns — in addition to tech giants reminiscent of Amazon and Microsoft which have boomed through the pandemic as hundreds of thousands depend on their services.
In the meantime, because the pandemic accelerates adoption of digital technology, the highlight is shining brighter on the strong business-to-business know-how ecosystem within the Seattle area amid the continuing financial and well being disaster.
That was mirrored within the high 10 offers throughout This fall, as B2B startups reminiscent of Zenoti, Flexe, and Stackline made the record.
The biotech and pharma sector reached file ranges nationally for offers and funding final yr. That development additionally confirmed up within the Pacific Northwest, as corporations reminiscent of AbSci, Umoja Biopharma, and Inipharm landed large rounds.
Right here’s a have a look at the highest offers throughout the PNW in This fall:
- Zenoti hits $1B valuation, raises $160M to construct enterprise software program for salons, spas, yoga studios
Digital major care startup 98point6 raises $118M as pandemic sparks demand for digital well being tech
Seattle startup Flexe raises $70M as e-commerce rise fuels demand for versatile warehousing platform
Artificial biology startup AbSci raises $65M to broaden ‘Protein Printing’ tech
Seattle biotech agency Umoja Biopharma raises $53M because it tackles distinctive method to immunotherapy
E-commerce intelligence platform Stackline raises $50M from Goldman Sachs as on-line retail booms
Former Zillow execs increase $40M seed spherical for Tomo Networks to reinvent how individuals purchase properties
Silicon Valley mainstay NEA leads $37.5M funding in Seattle cloud startup Pulumi
- Inipharm raises $35 million
Seattle startup Skilljar raises $33M as pandemic sparks demand for its buyer training software program