KPMG: Global venture capital investment soars to US$157bn in 2Q21

PRESS RELEASE from KPMG 

(Please note that this is a machine translation)

August 27, 2021.- Investment in venture capital reached a record during the second quarter of 2021 worldwide: US $ 157 billion in 7,687 transactions. A strong initial public offerings (IPO) market, high valuations, and a seemingly endless supply of “ dry powder ” - marketable securities that are highly liquid and are considered cash-like - helped fuel the rise, according to the report's edition. Second Quarter 2021 of KPMG Private Enterprise's “ Venture Pulse” Quarterly Report, describing global trends in venture capital investments in key jurisdictions around the world.

The magnitude of investment during the quarter under review was boosted by ten rounds of financing greater than US $ 1 billion in eight countries, including Northvolt , based in Sweden (US $ 2.75 billion), and Waymo , with headquarters in the United States (US $ 2.5 billion). Likewise, Nubank , based in Brazil, stood out among the top 10 businesses this quarter (US $ 1.51 billion).

The Americas region attracted a record investment of more than US $ 84,000 million during the second quarter of 2021. While the United States participated with US $ 75,800 million of that total, in South America, Brazil, contributed 3%, that is say about US $ 2,730 million. In Europe, investment in venture capital continued its strong rise, reaching US $ 34 billion, reaching a record sixth consecutive quarter. In Asia Pacific, on the other hand, venture capital investment fell 11% quarter-over-quarter, from $ 42.8 billion to $ 38 billion, but the trend remained strong compared to the historical average.

Also, and while fintech is the most attractive investment sector globally, healthcare, biotechnology, educational technology, gaming, and food delivery continued to record considerable investment activity.

Highlights for Latin America

Venture capital investment was solid in Latin America during the second quarter of 2021, led by an increase of US $ 1.5 billion from Nubank, based in Brazil, + US $ 300 million from QuintoAndar, also based in Brazil , + US $ 250 million from Mexico-based cryptocurrency platform Bitso, and + US $ 201 million raised by Brazil-based payments firm CloudWalk. Bitso's rise caused the company to rate a unicorn, second only to used car sales platform Kavak. Fintechs continue to be a dominant focus for venture capital investment in Latin America, accounting for three of the top four deals this quarter.

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