22 Jan 2021
North America continued to dominate global VC funding landscape during Q4 2020
Posted in Business Fundamentals

Global venture capital (VC) funding volume continued to decline during the last quarter (Q4) of 2020 with inconsistent activity across most of the regions. However, North America continued to attract the highest number of VC investments during the quarter, according to GlobalData, a leading data and analytics company.

North America accounted for 37.9% of global VC investment volume in Q4 2020, followed by APAC with 33.5% and Europe with 23.2% share. Middle East and Africa, and South and Central America garnered 4.2% and 1.3% shares of VC investment volume, respectively.

The number of VC funding deals that were announced globally declined by 14% from 1,721 in October to 1,480 in November. However, the pace of decline slowed and the VC deal volume shrank by only 1.8% to 1,453 deals in December 2020.

Aurojyoti Bose, Lead Analyst at GlobalData, says: 'While the deal activity across all regions remained inconsistent, the onset of the COVID-19 vaccination appears to be instilling some confidence.'

Though NorthAmericamanaged toaccount for the highest share of deal volume duringQ4, the region also experienced fluctuating fundingtrend duringthe months in the quarter. It experienced a dip in VCfundingvolume from 720 deals in October to493 deals in November, but bounced back strongly with 549 deals in December.

Bose adds: 'Akin toNorthAmerica, VCfundingactivity continuedfluctuating across other regions also. However, out of all the regions, APAC remained relatively resilient. It was the only region tomaintain VCfundingdeal volume above the 500 mark duringall three months in the quarter.'

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GlobalData plc published this content on 22 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 January 2021 13:23:06 UTC