Global venture capital investment in 2021 hits record high

Global venture capital investments are set to double this year from 2020 to a record high of over $ 580 billion, boosted by investor interest in online services in healthcare, finance and retail, boosted by monetary easing in major economies, according to data from a U.S. research firm.

Venture capital firms raised a total of $ 437.7 billion globally in the first nine months of 2021, marking five straight quarters of growth, according to data from CB Insights.

The same pace of investment in startups in the fourth quarter would bring the annual figure to $ 583.6 billion, far exceeding last year’s $ 284.2 billion. Investors are paying close attention to digitization and looking to take advantage of monetary easing amid the coronavirus pandemic.

In the first three quarters, the healthcare, fintech and retail sectors raised $ 97.1 billion, $ 94.7 billion and $ 82.5 billion, respectively, according to the data. published in October by CB Insights.

By country, fundraising by venture capital firms in the United States amounted to $ 210.4 billion, representing almost half of the global total in the nine-month period, with significant investment agreements involving data management company Databricks Inc., grocery delivery company Gopuff and the finance company. technology company Chime Financial Inc.

In Asia, $ 125.5 billion was raised during the same period, including $ 25.5 billion by Chinese startups and $ 9.9 billion invested in India.

In Japan, venture capital firms raised 580 billion yen ($ 5.1 billion), up about 60% from the previous year and surpassing the previous annual record set in 2019, according to a Japanese research company.

Among them, biotechnology firm Spiber Inc., based in Tsuruoka, Yamagata Prefecture, has raised 34.4 billion yen from US investment fund Carlyle Group and other investors, according to a press release. from Carlyle in September.

The Chinese government has tightened its control over national information technology giants such as Alibaba Group Holding Ltd. to limit their economic weight, and some global investments previously intended for China could be diverted to Japan, according to the Japan Venture Capital Association.

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