Billion-dollar VC funding deals did not attract investor attention during Q2 2021 due to COVID-19, finds GlobalData

Low-value deals (where the investment was less than or equal to $10m) accounted for the majority of global venture capital (VC) investment volume during the second quarter (Q2) of 2021, while deals valued more than $1bn remained mostly non-existent, according to GlobalData, a leading data and analytics company.

Of the total 5,416 deals with disclosed funding value announced during the quarter, 60.8% were low-value deals, while those valued more than $100m stood at just 5.9%. Meanwhile, only two deals valued more than $1bn were announced during the quarter.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “VC investors were more cautious during Q2 2021 and taking less risks with big-ticket deals amid the COVID-19 pandemic.”

VC investment volume (deals with disclosed funding value) decreased by 10.4% from 1,973 deals in April to 1,768 in May and further shrank by 5.3% to 1,675 in June 2021. In April 2021, low-value deals, as a percentage of the total deal volume, stood at 65.4%, while the share of deals valued more than $100m stood at just 5.6%. No deals worth more than $1bn were announced in April.

Similarly, the share of low-value deals, as a percentage of the total deal volume, accounted for 61.5% in May, while the share of deals valued more than $100m stood at 5.1%. No deals valued more than $1bn were announced in May.

In June, the share of low-value deals further fell down to 54.7%, while the share of deals valued more than $100m stood at 7%. Two deals valued more than $1bn were announced during the month.

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