04 Aug 2021
Posted in Business Fundamentals
Early-stage funding rounds continue to dominate global VC funding landscape in Q2 2021, finds GlobalData
Early-stage funding rounds (comprising Seed and Series A funding rounds) continued to dominate the global VC funding landscape in terms of deal volume during the second quarter of 2021, according to GlobalData, a leading data and analytics company.
The total number of deals with disclosed funding rounds announced during Q2 2021 stood at 4,122. Deals count decreased by 1.6% from 1,348 in April to 1,326 in May, but rebounded by 9.2% to 1,448 in June.
In total, 1,465 Seed and 1,459 Series A funding rounds were announced during Q2 2021, which collectively accounted for 70.9% of the total deal volume. In contrast, other funding rounds such as growth/expansion/late-stage funding rounds* collectively accounted for 29.1% of the total deal volume.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Most of the early-stage funding rounds are low-value deals. With VC firms wary of placing big-bets, early-stage rounds continue to top their preference. In fact, some of the months during the quarter did not see an announcement of any Series G, Series H and Series J deals.”
There was no Series H deals announced in April. In May, there were no Series G and Series J deals announced. June also saw no announcements of any Series H and Series J deals.
Change in shares as proportion of total deal volume remained inconsistent across different funding rounds during the three months of Q2 2021. While the share of Series A, Series B, Series E, and Series F funding rounds witnessed month-on-month growth during the quarter, share of seed funding rounds witnessed consistent decline and share of other funding rounds kept fluctuating.
* Comprising Series B, Series C, Series D, Series E, Series F, Series G, Series H, and Series J funding rounds