Q3’20 funding to US-based, VC-backed companies is the
second strongest quarter ever
Investments reach $36.5B in Q3’20, the second highest
quarter ever: VC investments to US-based companies hit a
7-quarter high in Q3’20 at $36.5B, up 22% year-over-year
(YoY) and 30% from Q2’20. The quarterly increase in deal
activity is more modest: 1,461 VC deals take place in
Q3’20, a 1% increase from 1,440 deals in Q2’20. While deal
activity has shown small increases each quarter so far this
year, Q3’20 deals are still down 11% YoY amid the
Number of quarterly mega-rounds climbs to a new record:
Mega-rounds drive funding gains as 88 US-based
companies raise rounds worth $100M or more in Q3’20,
surpassing the record set in Q2’20. As a result, mega-round
deal share rises to 54% of total funding.
Seed deals rise for the second consecutive quarter: Seed
deals continue their recovery after a sharp drop-off in Q4’19.
Later-stage deal size is still high: Series D median deal size
rises to $50M vs. $32M in Q2’20.
Global deal activity and funding see quarterly rises
North America, Asia, and Europe see combined funding
of $71.9B in Q3’20, a historical record: Global VC funding
rises over 40% in Q3’20 compared to Q2’20.
Asia sees the largest jump in funding and deals, deal activity
surpasses North America: Asia deal activity rises over 14% in
Q3’20, compared to a 1% rise in North America and a flat
quarter in Europe. Funding to startups in Asia increases 74%,
while jumping 29% in both Europe and North America in
Q3’20 vs. Q2’20.
Los Angeles and Seattle Metros see significant upticks in
deal activity: Los Angeles deal activity increases to 115 in
Q3’20, up from 86 in Q2’20. Seattle deal activity jumps 33%
in Q3’20 compared to Q2’20.
Most of the top metros see an increase in investments: While
quarterly deal activity declines in six of the top ten metros,
only two see a decline in investments in Q3’20, as mega-