Last year in 2021 the amount invested by U.S. venture capital (VC) in its startups reached an all-time high, greatly inflating the value of many new startups.
VC in the U.S. invested a total of 330 billion dollars in 2021, double that of 2020.
According to data published by Peach Book, VC in the U.S. invested $166.6 billion in startups in 2020. Investors have begun to competitively invest about four times more money in new startups than five years ago.
In particular, venture capitalists are known to have invested large amounts of money in startups in the two fields because they are very attracted to business software or e-commerce companies that are in a boom in the new coronavirus infection (COVID-19) pandemic.
Stych, a typical startup that makes software for certification, was invested by Coatue Management and other investors, and the company was valued at $1 billion. At that time, annual profits were less than $1 million.
However, according to the recent BVP NASDAQ Emerging Cloud Index, Stitch’s profits have risen about 16.4 times.
Investment in startups dealing with cryptocurrency as well as start-ups in the software sector is hot.
NFT startup “OpenSea” recently raised its company value from $1.5 billion in July last year to $13.3 billion by raising $300 million led by the VC company paradigm and KOTU.
Worldwide, the amount of startup investment has increased significantly. According to Peach Book, a total of $671 billion as of last year, up more than 90% from 2020.
However, some investors raised questions about whether this boom could continue. This is because the technology stock-oriented NASDAQ Composite Index has fluctuated over the past two months. As of the 5th, the NASDAQ Composite Index fell 3.3%.
In addition, some analysts say this will also be affected because investors are missing from software companies that enjoyed the “COVID-19 Special.”
