Low-value deals dominated VC funding landscape in cloud space in 2020, finds GlobalData

Low-value venture capital (VC) funding deals (investments less than or equal to US$10m) volume shrank as overall VC funding activity in the cloud space declined during 2020 compared to 2019. The share of low-value deals as a proportion of total deal volume also contracted, however, it still continued to account for a dominant share, according to GlobalData, a leading data and analytics company.

A total of 1,780 VC funding deals (with disclosed funding value) were announced in the cloud space during 2020. This was a decline of 9.6% from 1,969 VC funding deals (with disclosed funding value) announced in 2019.

The number of low-value deals also declined by 11.2% from 1,346 in 2019 to 1,195 in 2020. Despite the decline, low-value deals continued to dominate the VC funding landscape in the cloud space, though its share of total deal volume decreased from 68.4% in 2019 to 67.1% in 2020.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “VC investors continue to remain cautious when committing to big-ticket investments. This is also made evident by the fact that we did not see any billion-dollar deals announced in 2020, while 2019 saw the announcement of two deals valued more than US$1bn.”

The number of deals valued more than US$100m also decreased from 46 in 2019 to 40 in 2020, and the corresponding share as a proportion of the total deal volume also shrank from 2.34% in 2019 to 2.25% in 2020.

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