02 Feb 2021
Posted in Business Fundamentals
US, China remain preferred destinations for high-value VC investments in 2020, reveals GlobalData
With the COVID-19 pandemic dominating the headlines, the fear of uncertainty gripped the financial markets and investors remained cautious in 2020. However, the US and China managed to attract the highest number of high-value venture capital (VC) investments (>=US$100m), collectively accounting for more than 75% of the volume and value of such deals, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that a total of 77.6% and 81.4% of high-value VC deals volume and value remained concentrated only in the US and China.
The US witnessed the announcement of 299 high-value VC deals worth US$57.6bn, accounting for 50.3% and 46.3% share of high-value VC deals volume and value, respectively, in 2020. On the other hand, China witnessed the announcement of 162 high-value VC deals worth US$43.6bn accounting for 27.3% and 35.1% share of high-value VC deals volume and value, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “VC investors are not shying away from placing big bets in start-ups in the US and China, which is a testimony of the fact that these two countries still continue to remain attractive destinations despite challenging market conditions and dampened sentiments.”
Apart from the US and China, the other countries that made it to the list of top 10 countries by high-value deals volume include . These countries collectively witnessed the announcement of 92 high-value deals worth US$16.6bn.
Mr. Bose continues: “Though the US made it to the top, China saw the announcement of relatively more number of billion-dollar deals (greater than or equal to US$1bn). While nine billion-dollar deals were announced in China during 2020, the US saw the announcement of only one such deal.”
Some of the notable high-value VC funding raised by American firms during 2020 include US$1.9bn raised by American aerospace manufacturer and space transportation services company SpaceX and US$0.7bn secured by Quibi Holdings.
Some of the notable high-value VC funding raised by Chinese firms during 2020 include US$1.7bn raised by Full Truck Alliance and US$1.6bn raised by Zuoyebang.