NVCA report examines venture capital funding initiatives

The National Venture Capital Association (NVCA) 2022 Yearbook maintains over 14,400 domestic venture-backed companies raised funds last year, representing a new annual record.

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“On the surface, 2021 posted extraordinary numbers,” NVCA President and CEO Bobby Franklin said. “The remarkable year was paved by several years of a healthy startup and funding environment. The industry started 2022 on a high note, but in some cases, the topline, record-breaking figures don’t tell the full story given the dynamic, evolving, and growing ecosystem.”

The record funding allotment spanned 251 metro areas and 414 Congressional Districts, per the NVCA, indicating the investment pace averaged 40 companies nationwide raising venture capital (VC) funding daily.

The NVCA noted data provided by PitchBook showed VC funds closed exceeded $100 billion; VC investment into startups eclipsed $330 billion; VC-backed IPOs generated over $500 billion; and disclosed VC-backed mergers and acquisitions advanced beyond $100 billion.

Venture industry 2021 highlights include venture investment reaching startups in every state, the District of Columbia and Puerto Rico; the overall domestic median fund size reached $50 million, the California, Massachusetts, and New York median fund size being $60 million, collectively; and the energy sector experienced the largest year-over-year (YoY) growth in VC investment, as 259 energy deals raised $8.8 billion -, representing 42 percent and 256 percent YoY increases, respectively.