普华永道-2020年第三季度风险投资报告（英文）-2020.12-109页_2mb

MoneyTree™ Report - Q3 2020 Summary

Core Content

The MoneyTree™ Report for Q3 2020 provides an overview of venture capital (VC) funding trends in the United States and globally. It highlights significant growth in funding, the role of mega-rounds, sector-specific activity, unicorn development, and regional performance across major cities and states.

Main Points

US Insights

• Q3 2020 Funding: US-based, VC-backed companies received $36.5B in Q3 2020, marking the second-highest quarter ever, with a 22% YoY increase and a 30% increase from Q2 2020.
• Deal Activity: 1,461 VC deals were recorded in Q3 2020, a 1% increase from Q2 2020, but still 11% lower than the previous year due to the pandemic.
• Mega-Rounds: The number of mega-rounds (funding of $100M or more) reached a new record with 88 companies securing such funding, accounting for 54% of total funding.
• Seed Deals: Seed deal activity rose for the second consecutive quarter, showing recovery from the sharp drop in Q4 2019.
• Series D Deals: The median deal size for Series D rounds increased to $50M in Q3 2020, up from $32M in Q2 2020.

Global Insights

• Global Funding Growth: Global VC funding increased by over 40% in Q3 2020 compared to Q2 2020, reaching a historical record of $71.9B.
• Asia Growth: Asia saw the largest increase in both funding and deal activity, with a 14% rise in deals and a 74% increase in funding.
• North America and Europe: North America and Europe also saw increases in funding, with North America up 29% and Europe up 29%, while Europe had a flat deal activity.

Deal and Funding Trends

• Quarterly Seasonality: Q3 2020 was the strongest third quarter in over six years for US funding.
• Annual Funding Pace: The 2020 funding pace was near record levels, although deal activity remained below previous years.
• Sector Activity: Internet startups continued to dominate funding, with notable growth in monitoring and security, healthcare, and SaaS.
• Top Sectors by Funding:
  • Healthcare > Biotechnology
  • Internet > SaaS > Monitoring & Security
  • Internet > SaaS > BI, Analytics & Performance Mgmt
  • Internet > SaaS > Accounting & Finance
  • Internet > E-Commerce > Marketplace
  • Internet > SaaS > Healthcare
  • Healthcare > Drug Development
  • Internet > SaaS > HR & Workforce Management
  • Internet > SaaS > Advertising, Sales & Marketing

Unicorns

• US Unicorn Population: The total US unicorn population continued to grow, with a 2nd consecutive quarter of increased aggregate valuation.
• Top 5 Highest-Valued US Unicorns in Q3 2020:
  1. SpaceX – $46.0B – Industrial Aerospace & Defense
  2. Stripe – $36.0B – Internet Software & Services Payments
  3. Airbnb – $18.0B – Internet E-Commerce, Travel
  4. Epic Games – $17.0B – Software (non-internet/mobile) Gaming
  5. Magic Leap – $16.0B – Software (non-internet/mobile) AR/VR

Exits

• M&A Exits: Q3 2020 saw a rebound in M&A exits after a decline in Q2 2020, with a historical record.

• IPO Exits: US IPO exits more than doubled in Q3 2020, reaching a new high.

• Top 5 US M&A Exits:

  1. GRAIL – $8.0B – Healthcare Disease Diagnosis (acquired by Illumina)
  2. OSIsoft – $5.0B – Internet Business Intelligence, Analytics & Performance Mgmt (acquired by AVEVA)
  3. Postmates – $2.7B – Mobile Software & Services Supply Chain & Logistics (acquired by Uber)
  4. CradlePoint – $1.1B – Internet Networking & Connectivity (acquired by Ericsson)
  5. Silver Peak Systems – $0.9B – Mobile Software & Services Telecom Services (acquired by Hewlett Packard Enterprise)

• Top 5 US IPOs:

  1. Snowflake Computing – $33B – Internet Database Management
  2. Palantir Technologies – $22B – Software (non-internet/mobile) Business Intelligence, Analytics & Performance Mgmt
  3. Unity – $14B – Software (non-internet/mobile) Multimedia & Graphics
  4. GoodRx – $13B – Internet Information Providers & Portals
  5. Oak Street Health – $5B – Healthcare Long-term Care

Regional Insights

• Top 10 Metro Areas by Deal Activity:

  • San Jose-San Francisco-Oakland, CA
  • New York-Newark, NY-NJ-CT-PA
  • Boston-Worcester-Providence, MA-RI-NH-CT
  • Los Angeles-Long Beach, CA
  • Seattle-Tacoma, WA
  • Denver-Aurora, CO
  • Washington-Baltimore-Arlington, DC-MD-VA-WV-PA
  • San Diego-Carlsbad, CA
  • Chicago-Naperville, IL-IN-WI
  • Minneapolis-St. Paul, MN-WI

• Top 10 Metro Areas by Investments:

  • San Jose-San Francisco-Oakland, CA
  • New York-Newark, NY-NJ-CT-PA
  • Los Angeles-Long Beach, CA
  • Boston-Worcester-Providence, MA-RI-NH-CT
  • Raleigh-Durham-Chapel Hill, NC
  • Seattle-Tacoma, WA
  • Chicago-Naperville, IL-IN-WI
  • Minneapolis-St. Paul, MN-WI
  • Dallas-Fort Worth, TX-OK

• Los Angeles Metro: Deal activity increased to 115 in Q3 2020, up from 86 in Q2 2020, with aerospace and defense startups seeing major funding.

• Raleigh Metro: Epic Games’ $1.5B mega-round significantly boosted funding, making it the top deal in the region.

• Seattle Metro: Deal activity increased by 33% from Q2 2020, with top deals going to later-stage startups.

• Chicago Metro: Funding reached an 8-quarter high, with the top two deals accounting for 63% of total funding.

• Minneapolis Metro: Total funding saw a significant increase, with four of the five top deals in the healthcare sector.

• Dallas Metro: Funding rose to an 8-quarter high, driven by two mega-rounds in the healthcare and fintech sectors.

State Insights

• Top 3 States by Funding: Startups in North Carolina, Illinois, and Minnesota accounted for 71% of US funding in Q3 2020.
• North Carolina: Investments jumped 620% from Q2 2020, with Epic Games leading the way.
• Illinois: Funding activity reached an 8-quarter high, with late-stage startups gaining traction.
• Minnesota: Bright Health’s $500M mega-round led the top funding deals in the state.

Key Information

• Mega-Round Growth: The number of mega-rounds in Q3 2020 reached a new high, contributing significantly to the overall funding increase.
• Sector Trends: Monitoring and security, healthcare, and SaaS sectors saw substantial growth in funding.
• Geographic Trends: Asia led in both deal activity and funding growth, while North America and Europe also showed positive trends.
• Regional Growth: Los Angeles and Seattle had significant deal activity increases, while the majority of top metros saw investment growth despite declines in deal numbers.
• State-Level Growth: North Carolina, Illinois, and Minnesota saw the most investment growth, with notable contributions from major companies in the healthcare and technology sectors.

Conclusion

Q3 2020 was a pivotal quarter for venture capital in the US and globally, marked by record-breaking funding levels, a surge in mega-rounds, and continued growth in key sectors. Despite the pandemic's impact on deal activity, the overall investment climate remained strong, with notable performance in major metro areas and states.