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#Q3VC
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21 October, 2020
Venture
Pulse
Q3 2020
Global analysis of
venture funding
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#Q3VC
KPMG International entities provide no services to clients. All rights reserved.
Welcome
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Welcome to the Q3’20 edition of KPMG Private Enterprise’s Venture Pulse, a
quarterly report highlighting the key trends, opportunities, and challenges facing
the venture capital market globally and in key jurisdictions around the world.
Despite ongoing concerns related to COVID-19, geopolitical tensions, the
upcoming US presidential election, and a potential hard Brexit, VC investment
during the quarter remained robust across all regions of the world.
An increasing number of mega-deals helped drive investment value up, with
three deals above $1 billion. Late-stage companies in general attracted the
lion’s share of investment in Q3’20, while funding for early-stage companies
continued to falter across the globe. The prolonged decline in early-stage
deals activity is concerning as it will likely have negative impacts on the
pipeline, particularly for Series B rounds, down the road.
After 2 quiet quarters, Asia saw a strong rebound in VC investment, led by a
$1.5 billion raise WM Motor in China, and a $1.3 billion raise by Flipkart in
India. The Americas also saw strong VC activity, led by a $1.9 billion raise by
SpaceX and two $600 million plus raises by RobinHood. VC investment in
Europe remained steady, led by a $650 million raise by Sweden-based
Klarna, a $632 million raise by Germany-based CureVac, and a $580 million
raise by Revolut in the UK.
IPO activity picked up during Q3’20, with strong IPO exits by Snowflake,
JFrog, and Unity Software, direct listings by Palantir Technologies and Asana,
and the announcement of SPAC-based IPOs by Skillz and Opendoor. With
China-based mega-giant Ant Financial filing IPO documents for listing on the
HKSE, in addition