Leading cash management companies expanded their dominance in Silicon Valley last quarter, crowding venture capitalists with their former niche business, and moving at a pace that nearly doubled the 2021 startup funding record. rice field.
Hedge funds, mutual funds, pensions, sovereign wealth groups and other so-called non-traditional venture investors were more active in the second quarter than in the previous period, according to research firm PitchBookData Inc. These companies participated in 42% of startup finance. According to Pitchbook, these transactions account for more than three-quarters of the investment capital.
According to a PitchBook report, investment in US start-ups in the first half of 2021 reached $ 150 billion, surpassing full-year funding by 2020.
According to interviews with investors and start-up executives, large asset companies have huge capital, are unlikely to act swiftly and seek board seats or involvement in company decision-making, and are often , Has become more attractive to the founders. As a result, transactions are taking place at a dizzying pace.
“It’s like speed dating, but it’s more extreme,” said Peter Fishman, a longtime Silicon Valley tech expert who co-founded data automation startup Mozart Data Inc last year.
Tech Startup Financing sets a record as a giant fund dwarf venture capitalist
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