IVCA Feature: 2021 VC & PE Trends … Tech Start Ups & Higher Valuation

July 7, 2021

Coming out of 2020 and the pandemic circumstance, Venture Capital and Private Equity deals are continuing their hot streak. In the last IVCA newsletter, the trends were listed in general. The following is a deeper dive into the specific topics listed, one for Venture Capital (Tech Start Ups) and one for Private Equity (Higher Valuations). Here are some online articles and podcasts on those two topics.
Venture Capital … TECH START-UPS
PYMNTS.com, Venture Capitalists Rush To Back Tech Startups
Venture capitalists are rushing to back Silicon Valley technology startups at a dizzying pace, with increasing competition to fund the hottest new companies … Investors were tracking through February to invest over $460 billion into private startups this year, according to the data provider PitchBook — an almost 40 percent increase from a recent peak in 2018.
READ HERE: https://www.pymnts.com/news/investment-tracker/2021/venture-
TechCrunch.com, Fintech Startups set VC records as the 2021 Fundraising Market Continues to Impress
While waiting for full first-quarter Venture Capital results for fintech startups to drop, we knew that they were going to be outsized … noting that by mid-March the fintech market had already recorded a record number of $100 million rounds.
READ HERE: https://techcrunch.com/2021/04/29/fintech-startups-set-vc-records-as-the-
Investors.com, Venture Capital Flooding Into Technology Companies At Record Levels
"Venture Capital is very healthy right now, with capital being allocated at a pace more rapid than what we've seen historically," said Cameron Stanfill, senior venture capital analyst at PitchBook, a financial data and software company covering capital investments.
READ HERE: https://www.investors.com/news/technology/venture-capital-flooding-into-
PodcastAddict.com, This Week in Start Ups
Angel investor Jason Calacanis (Uber, Calm, Robinhood) interviews the world’s greatest founders, operators, investors and innovators. Get an insider’s look into venture capital … and ride the cutting edge of technology in today's headlines and beyond.
LISTEN HERE (various topics): https://podcastaddict.com/podcast/1654
PRIVATE EQUITY … Higher Valuations
VisualCapitalist.com, The Ballooning Valuations In Private Equity Deals
Private Equity is getting increasingly expensive. As a result, the pricing of an average deal today, by the EV/EBITDA metric, is expected to be at a premium relative to the last decade.
READ HERE: https://www.visualcapitalist.com/ballooning-valuations-in-private-equity-
TheMiddleMarket.com, Valuation Boom May Benefit Middle-Market PE Firms
Signs of frothy financial sponsor valuations are evident across sectors … the average Private Equity takeover reached all time highs at 13.2x enterprise value to earnings before interest, depreciation, and amortization in 2020. That’s up slightly from 2019, but is noticeable given valuations’ resilience in an act-of-god market environment.
READ HERE: https://www.themiddlemarket.com/news-analysis/valuation-boom-may-
InvestmentNews.com, ‘On the Podcast: Private Equity's Fast Rebound and Rising Valuations’
Valuations have skyrocketed at registered investment adviser firms, recently hitting never-before-seen levels, with bankers and executives whispering that a limited number of transactions have reached valuations of 18 times to — gasp! — 20 times a firm’s annual EBITDA, a cash-flow metric that stands for earnings before interest, taxes, depreciation and amortization.
READ HERE: https://www.investmentnews.com/how-high-can-ria-valuations-go-207266
Pitchbook.com,‘On the Podcast: Private Equity's Fast Rebound and Rising Valuations’
To kick off Season Three of "In Visible Capital," private equity reporter Adam Lewis takes a closer look at the state of private equity.
LISTEN HERE (18 Minutes): https://pitchbook.com/news/articles/in-visible-capital-podcast-season-3-ep-1-private-equity-outlook