Global startup funding spikes 157% in Q2

Funding spiked between 2020 Q2 and 2021 Q2 from $60.7bln to a record $156.2bln

  
Image used for illustrative purpose. A visitor attends an opening ceremony of World SME Expo for small and medium enterprises in Hong Kong November 16, 2004. The largest SME-focused promotional event since mainland China adopted a new policy to encourage enterprises to invest in Hong Kong. More than 300 trade support service providers and industry associations from around the world offer a wide range of SME-focused services at the expo. ECONM REUTERS/Bobby Yip

Image used for illustrative purpose. A visitor attends an opening ceremony of World SME Expo for small and medium enterprises in Hong Kong November 16, 2004. The largest SME-focused promotional event since mainland China adopted a new policy to encourage enterprises to invest in Hong Kong. More than 300 trade support service providers and industry associations from around the world offer a wide range of SME-focused services at the expo. ECONM REUTERS/Bobby Yip

The global startup funding has skyrocketed in recent quarters hitting new historical levels despite the economic effects of the coronavirus pandemic.
 
The recent funding shows that the sector has recovered from the health crisis.
 
According to data acquired by Finbold, the global startup funding spiked 157% between 2020 Q2 and 2021 Q2 from $60.7 billion to a record $156.2 billion. During the first half of 2021, the funding stood at $292.4 billion.
 
In the first three months of the year, the funding was at $136.2 billion, a growth of 35.6% from the 2020 Q4 figure of $100.4 billion. Notably, the funding surpassed the $100 billion mark for the first time in Q4 2020. Over the last five years, the lowest funding for startups was recorded in 2016 Q2 at $37 billion.
 
The report highlights some of the conditions around the funding activity amid the economic turmoil.
 
According to the research report: “Although the pandemic initially dampened the funding activity, businesses quickly adapted to changing consumer behaviour, sparking a massive comeback in funding with robust activity in sectors like healthcare and technology.”
 
The funding has also played a key role in driving the valuation of most startups. For instance, in Q2 2021, the global number of unicorns stood at a record 136.
 
Moving forward, several sectors will benefit from the funding, especially for those that have adapted to the changing consumer behaviour like health and technology.
 
Furthermore, the cryptocurrency sector is also likely to witness an influx of investors, considering that several venture capital firms have raised significant amounts specifically targeting the industry.
-- TradeArabia News Service

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