Venture Pulse q4 2021

Venture Pulse
Q4 2021
Global analysis of venture funding
January 19, 2022

Welcome message
Welcome to the Q4’21 edition of Venture Pulse — KPMG advanced manufacturing. ESG also continued its climb to You know KPMG, you might not know
Private Enterprise’s quarterly report highlighting the key prominence 쏧 driven in part by the COP26 conference, which KPMG Private Enterprise.
trends, challenges, and opportunities facing the VC market was held during the quarter.
globally and in key jurisdictions around the world. KPMG Private Enterprise advisers in
Heading into 2022, VC investment globally is expected to KPMG firms around the world are
2021 was a banner year for the global VC market, with record remain high given the wealth of dry powder available in the dedicated to working with you and your
high highs for total investment and the value and number of market, the continued involvement of non-traditional business, no matter where you are in
VC deals, global CVC investment and the number of CVC investors, and the ongoing evolution of VC markets in less
your growth journey — whether you’re
deals, the number of exits and total exit value, and global developed jurisdictions, including South America and Africa.
looking to reach new heights, embrace
fundraising value. Despite the Omicron variant of COVID-19 While IPO activity is expected to slowdown from the frenetic
technology, plan for an exit, or manage
leading to new rounds of travel challenges and local pace seen in 2021 as more companies take the time
the transition of wealth or your business
restrictions in the second half of the year, VC investment in needed to set themselves up for post-IPO success, the IPO
to the next generation.
Q4’21 remained high, propelled by robust investment across market in general is expected to remain robust in addition to
the Americas and Europe. While total VC investment in Asia M&A activity.
dropped from the record high achieved in Q3’21, it remained
relatively robust compared to historical trends. In this quarter’s edition of Venture Pulse, we share highlights
Jonathan Lavender
of both annual and Q4’21 VC market results, in addition to Global Head,
Megadeals continued to dominate the VC market, with nine discussing a number of global and regional trends, including: KPMG Private Enterprise
companies raising $1 billion+ rounds during Q4’21, led by
Indonesia-based J&T Express ($2.5 billion); US-based — The increasing prioritization of IPO readiness over speed
companies Commonwealth Fusion Systems ($1.8 billion), — The growing focus on talent and HR-focused solutions
— The enhanced focus on hybrid models of work Conor Moore
Gopuff ($1.5 billion) and Sierra Space ($1.4 billion); and Head of KPMG Private Enterprise in the
China’s Regor Therapeutics ($1.5 billion). — The industries likely to see consolidation, including fintech
Americas, Global Leader —
and food delivery Emerging Giants,
A $900 million raise by Germany-based N26 was Europe’s KPMG Private Enterprise and
largest deal of the quarter. Numerous industries and market We hope you find this edition of Venture Pulse insightful. If you Partner, KPMG in the US
segments attracted significant interest from VC investors, would like to discuss any of the results in more detail, please
including fintech, B2B services, healthtech, cybersecurity, and contact a KPMG adviser in your area.
Throughout this document, “we”, “KPMG”, "KPMG Private Enterprise", “us” and “our” refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of
which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG
International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Unless otherwise noted, all currencies reflected throughout this
document are US Dollar.
©2022 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. # Q4VC
©2022 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
2
Contents
Global US
— VC investment capped off — VC hits record $88.2 billion invested
incredible year with another across 3536 deals
near record quarter of — Annual median deal size for D+ rounds,
$171.4 billion hits $105 million
— Corporate VC participation — Fintechs pull in 4 of the largest 10 deals
— Corporate VCs join in over $37 billion in
04
jumps from $49.9 billion to
19
$81 billion YoY Q4 — capping record year
— Unicorn rounds spike for fourth — Annual fundraising reaches new heights
consecutive quarter over $128 billion
— Venture-backed exits surpass
$300 billion for the quarter —
again
— Global fundraising reaches
$200 billion in 2021
Americas Asia
34 47 72
— New record high of $95.2 billion — Venture Capital investment
invested across 3946 deals nears new high — with $46.2
— Annual median deal size for D+ billion across 2440 deals
rounds hits $110 million — Corporates double down —
— Q4 caps a historic year for with investments nearing
Canadian startups $30 billion
— Historic year for Brazil — with — Exits resurge in Q4 —
22 companies raising $100 M
or more
Europe finishing the year strong
— India concludes record-setting
— Brazil sees over $2.5 billion — Investment remains strong in Europe — with over $28 billion invested on 2041 deals year with another $10 billion +
invested with mega deals — Corporate VC participation remains healthy quarter
including Nubank — First-time venture financing rises from $4.2 billion to $11 billion YoY — China dominates with 7 of top
— London sees record-breaking VC investment in Q4 10 deals
— Top 10 deals spread among 6 countries
# Q4VC
3
Global US | Americas | Europe | Asia
Globally, in Q4’21 VC-backed companies raised

$171.4B across 8,710 deals
# Q4VC
4
Global VC market shatters numerous records, as VC investment surges to new annual high
VC investment globally remained strong in Q4’21 — bringing to a close an incredible year. The ready availability of cash, the significant returns seen on exits throughout the year,
and the increasing participation of corporates, family offices, and a range of other non-traditional investors has only added to the overall attractiveness of the market. With the rise
of the Omicron variant and the return of work-from-home mandates in some jurisdictions or the delay of return-to-office plans in others, the continued pressure to enhance digital
offerings and hybrid work environments is expected to remain firmly on the radar of investors across industries. The combination of a strong investment environment and the
continued drive for digitalization will likely help keep VC investment high heading into Q1’22.
2021: The year of breaking records While the achievement of unicorn status continued to be a major milestone for companies
2021 was the strongest year for VC investment on record, in terms of both total deal in many jurisdictions, the proliferation of new unicorns in the US — 76 in Q4’21 alone —
value and the number of VC deals seen globally. The robust VC investment climate has made achieving unicorn status somewhat less of a for companies there.
was highlighted in part by record setting investment levels in numerous jurisdictions,
Hot sectors remain pivotal to investment surge
including the US, Canada, Brazil, the UK, Germany, Israel, the Nordic region,
Ireland, and India. Corporate VC investment also reached a new high during the VC investment globally stretched across a broad range of sectors in Q4’21, with
quarter — more than a third higher than the previous record set in 2018. fintech, health and biotech, B2B services, cleantech, mobility, autotech, cybersecurity,
and delivery continuing to attract significant attention. At a global level, several of the
The expanding breadth of VC investors, including an increasing number of non-
more mature sectors of investment also began to feel rumblings of consolidations;
traditional investors, globally propelled fundraising near-record levels, only slightly
during Q4’21, for example, US-based DoorDash announced plans to acquire
lower than 2019’s total. On the other end of the deal life cycle, both the number of
European delivery company Wolt for approximately $8 billion in a deal expected to
exits and total exit value also broke records — with the latter almost three times the
close in 20221.
previous high.
ESG continues climb to prominence
Unicorn companies key to VC investment surge
Following on the strong uptick last quarter, the importance of ESG continued to gain
Unicorn companies globally continued to account for a significant amount of VC ground in Q4’21 — helped in part by the COP26 conference. The focus on ESG has
investment in 2021, with a number of existing unicorns raising large rounds in evolved considerably over the last year given increasing pressure, from consumers
Q4’21, including J&T Express ($2.5 billion), Lacework ($1.3 billion), Thrasio demanding more action from the companies they do business with VC investors
($1 billion) and N26 ($900 million). The number of unicorn deals more than doubled increasing evaluating ESG metrics to inform their investment decisions, and the
year-over-year, along with the total amount invested in unicorn companies. growing importance of ESG stories for companies looking to go public.
The number of unicorn companies continued to explode in Q4’21, with 126 unicorns The breadth of ESG-specific VC investments has also evolved, with an increasing focus
globally. Quite a range of less mature VC markets saw new unicorns birthed during on net zero or low emissions technologies across sectors, food-and agtech, and
the quarter, including Vietnam (Sky Mavis, Momo), Brazil (CargoX, Olist), Mexico alternative energy. From a VC investor standpoint, one challenge with ESG continues to
(Clara, Merama), Indonesia (Kopi Kenangan, Ajaib), and the Philippines (Mynt) — be the lack of standards for evaluating ESG activities on a consistent basis; heading into
highlighting not only the increasing diversity of the global VC market but the growing 2022, there will likely be increasing investments in ESG solutions and measurement tools
size of startups attracting investment in all corners of the world. to help both companies and investments track, measure, and report their results.
. 1 https://www.theverge.com/2021/11/10/22774485/doordash-acquires-wolt-stock-europe-international
# Q4VC
5
Global VC market shatters numerous records, as VC investment surges to new annual high, cont’d .
Companies increasingly prioritizing IPO readiness over speed Trends to watch for in 2022
IPO activity continued to be robust in Q4’21, although the pace pulled back Heading into 2022, VC investment is expected to remain very strong in most
somewhat as SPAC transactions continued to lose their luster and a number of regions of the world, with less developed VC markets, such as Africa and the
companies that had held SPAC exits experienced poor post-IPO performance. Middle East, expected to gain more attention from VC investors. Fintech will likely
During the quarter, a number of companies that had initially considered making remain one of the hottest areas of investment, in addition to B2B services,
quick SPAC exits instead turned their attention to raising crossover rounds that healthtech, cybersecurity, and AI solutions across sectors. ESG-aligned VC
gave them more optionality as to timing and type of public offering. While the investments are also expected to grow as both companies and VC investors
increasing focus on IPO readiness over speed is expected to cause the number of increasingly prioritize or target a broader range of ESG fundamentals.
IPOs to decline somewhat in 2022 next to 2021’s record level of transactions, there
is growing confidence among both investors and companies that the IPOs that will While the pace of IPOs may drop off somewhat heading into Q1’22 as companies
be held will be of higher quality and result in better post-IPO performance. focus on preparedness, the quality of IPOs is expected to be very strong. M&A
activity will likely remain robust, particularly in highly mature sectors like fintech
HR-focused technologies a growing priority for VC investors and food delivery — where consolidations are expected to increase significantly.
The critical importance of talent and HR to the success of both startups and
traditional corporates has led to a significant uptick in VC investment focused on a
wide range of HR solutions, from AI-powered recruitment technologies to
performance management solutions. In Q4’21, for example, US-based payroll and
compliance platform Deel raised $425 million, Germany-based automated people
workflow provider Personio raised $270 million, and US-based backround check
automation firm Chekr raised $250 million. Given the rapid changes companies
have made to their operations over the last eighteen months, including the
increasing use of remote and hybrid workforces, investments in HR and people
technologies will likely remain very strong well into 2022.
# Q4VC
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2021 concludes with record figures
“
Global venture financing
2014–Q4'21
There’s a lot of positivity
$200 12,000 After a record Q3, 2021 concluded with the second-
highest single quarter of VC invested in the 2010s to
right now in the global VC
$180 surge past dot-com financing frenzies. Moreover, space and, assuming there’s
10,000 financing volume charted all-time highs as well not some major setback due
$160 worldwide. All in all, 2021 saw $671 billion invested
throughout the full year, a staggering sum when
to the Omicron variant, that
$140 compared to the annual highs seen at the start of positivity is likely going to
8,000
$120
the decade. It is fair to be cautious of a mania, yet carry well into 2022,
key drivers and trends to watch that both stoked this
historic surge and could portend its future include:
particularly in the US and
$100 6,000
Europe. Over the next year,
— Whether liquidity remains strong, adding further
$80
veracity to sky-high private valuations we’re also going to start
4,000
$60 — Ongoing levels of commitments by limited
seeing VC investments pick
partners to fund managers worldwide up in less developed regions
$40
2,000
— Surges in equities that prompt further allocations of the world, including in
$104.0
$151.4
$168.0
$180.2
$171.4
$73.1
$92.7
$77.7
$93.8
$72.5
$69.5
$85.4
$81.7
$72.5
$70.3
$99.9
$20 to alternative investments, especially venture places like Africa, the Middle
”
and private equity, in order to keep up with the East, and South America.
$0 0
“denominator effect”
Q1
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— The diversifying and still-growing base of
2014 2015 2016 2017 2018 2019 2020 2021
startups worldwide that are exerting significant
demand for capital
Deal value ($B) Deal count Angel & seed Early VC Later VC
Source: Venture Pulse, Q4’21. Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, January 19, 2022.
Jonathan Lavender
Global Head,
KPMG Private Enterprise
# Q4VC
7
2021 maintains historic optimism

Global median deal size ($M) by stage Global up, flat or down rounds
2014–2021* 2014–2021*
$16 100%
$14.0 90%
$14
80%
$12
70%
$10 60%
$8 50%
$5.9 40%
$6
30%
$4
20%
$2 $1.5
10%
$0 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
Angel & seed Early VC Later VC Up Flat Down
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by PitchBook, January 19, 2022
# Q4VC
8
All series notch new highs

Global median deal size ($M) by series
2014–2021*
$120
$109.2
$100
$80
$60
$52.0
$40
$26.0
$20
$10.0
$2.0
$0 $0.6
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
9
The late stage more than doubles YoY

Global median pre-money valuation ($M) by series
2014–2021*
$1,200
$1,000.00
$1,000
$800
$600
$400
$300.0
$200
$110.0
$34.0
$8.0
$0 $3.6
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
10
Even Series A sees a record sum of VC invested

Global deal share by series Global deal share by series
2014–2021*, number of closed deals 2014–2021*, VC invested ($B)
30,000 $600
25,000 $500
20,000 $400
15,000 $300
10,000 $200
5,000 $100
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
Series D+ Series C Series B Series A Angel & seed Series D+ Series C Series B Series A Angel & seed
# Q4VC
11
Software predominates once again

Global financing trends to VC-backed companies by sector Global financing trends to VC-backed companies by sector
100% Transportation 100%
90% Commercial 90%

Products & Services
80% 80%
Consumer Goods &
Services
70% 70%
Software
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices &
0% Supplies 0%
2021*
2021*
2014
2015
2016
2017
2018
2019
2020
2014
2015
2016
2017
2018
2019
2020
Energy
# Q4VC
12
First-time financings turn trends around

Corporate VC participation in global venture deals Global first-time venture financings of companies
2014–Q4'21 2014–2021*
$100 3,000 $60 14,000
$90
2,500 12,000
$50
$80
$70 10,000
2,000 $40
$60
8,000
$50 1,500 $30
$40 6,000
1,000 $20
$30
4,000
$20
500
$10
$13.2
$10.7
$51.7
$17.0
$18.3
$30.5
$16.7
$26.0
$38.8
$18.7
$17.2
$14.1
$22.1
$30.2
$24.2
$35.8
$58.5
$43.1
$47.4
$30.5
$31.4
$36.6
$39.0
$37.5
$34.8
$49.0
$49.9
$65.5
$78.1
$90.7
$81.0
$10 2,000
$9.8
$15.8
$28.1
$27.0
$24.8
$33.1
$31.1
$31.1
$54.3
$0 0
$0 0
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2014 2015 2016 2017 2018 2019 2020 2021*
2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Deal value ($B) Deal count
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by
PitchBook, January 19, 2022 PitchBook, January 19, 2022
Note: The capital invested is the sum of all the round values in which corporate venture capital investors participated, not the amount that corporate
venture capital arms invested themselves. Likewise, deal count is the number of rounds in which corporate venture firms parti cipated.
Corporate venture arms and corporates via direct investment continue to remain critical After a slow slide throughout much of the decade, first-time financings finally resurged in both
participants in a significant portion of all deal value, although the increasing size of traditional count and aggregate VC invested, seeing all-time highs in both for the year, thanks to some
incumbent venture firms also has ensured more co-investment rounds than before. record-breaking raises.
# Q4VC
13
The rich get richer, and liquidity proves out

Global unicorn rounds Global venture-backed exit activity
2014–Q4'21 2014–Q4'21
$40 160 $450 1,000
$400 900
$35 140
$350 800
$30 120
700
$300
$25 100 600
$250
$20 80 500
$200
400
$15 60
$150
300
$10 40 $100 200
$111.6
$113.3
$175.4
$167.2
$200.0
$328.8
$416.9
$307.8
$324.5
$28.8
$73.4
$30.7
$73.5
$22.5
$35.1
$31.2
$42.3
$33.0
$30.1
$35.3
$21.7
$46.1
$37.0
$31.9
$68.5
$28.9
$53.9
$61.2
$74.5
$56.3
$45.7
$59.9
$11.9
$24.4
$11.4
$10.9
$13.1
$15.6
$13.9
$31.7
$33.0
$35.8
$37.8
$5 20 $50 100
$7.2
$9.4
$7.5
$9.3
$0 0 $0 0
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2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count Exit value ($B) Exit count
Note: PitchBook defines a unicorn venture financing as a VC round that generates a post-money valuation of $1 billion or more. These are not necessarily Note: Exit value for initial public offerings is based on post-IPO valuation, not the size of the offering itself.
first-time unicorn financing rounds, but also include further rounds raised by existing unicorns that maintain at least that valuation of $1 billion or more.
As noted in the prior edition of the Venture Pulse, it is likely many unicorns are raising large Q4 2021 marked the sixth straight quarter well over $150 billion was notched worldwide by
sums for potentially the last time before they prepare for a significant liquidity event, most likely venture-backed exits across traditional routes. With 2021 experiencing overall historic liquidity,
a public listing given the current climate. Moreover, new unicorns continue to be created at a the global venture ecosystem is experiencing an unprecedented rate of VC investment being
significant clip, leading to a remarkable concentration of VC invested in existing, large private returned to fund investors thereby encouraging even greater investment rates.
companies.
# Q4VC
14
Public listings soar past $1 tril ion

Global venture-backed exit activity (#) by type Global venture-backed exit activity ($B) by type
2014–2021* 2014–2021*
5,000 $1,600
4,500
$1,400
4,000
$1,200
3,500
$1,000
3,000
2,500 $800
2,000
$600
1,500
$400
1,000
$200
500
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
Acquisition Buyout Public Listing Acquisition Buyout Public Listing
Even as volatility has crept back up given various geopolitical concerns, 2021 notched all-time highs to close the year. Public equities have experienced and continue to display
unique, unprecedented trends. For the venture ecosystem in particular, 2020 and 2021 continue to be characterized by opportunistic unicorns going public across exchanges
worldwide as market conditions remain so bullish.
# Q4VC
15
$200 bil ion+ achieved… again

Global venture fundraising
2014–2021*
Allocators worldwide continue to flock to alternative investments — venture
$250 1,800 is no exception. For the second time this decade, LPs contributed sufficient
capital to venture firm coffers that well over $200 billion was raised
1,600 worldwide. This will only continue to fuel record valuations and investment
rates going into the 2020s. The market environment is likely to remain
$200
1,400 heated and competitive for some time to come.
1,200
$150
1,000
800
2021 has surged past a historic mark once
$100 again, with well over $200 billion
600
closed across just shy of 1,400
$50
400
funds worldwide.
$101.9
$147.7
$146.1
$177.4
$214.2
$186.5
$206.7
200
$71.5
$0 0
2014 2015 2016 2017 2018 2019 2020 2021*
Capital raised ($B) Fund count
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021.
Data provided by PitchBook, January 19, 2022
# Q4VC
16
LPs keep plying existing managers

Global venture fundraising (#) by size Global first-time vs. follow-on venture funds (#)
2014–2021* 2014–2021*
100%
100%
90%
90%
80%
80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M First-time Follow-on
# Q4VC
17
China & the US account for most top deals

Top 10 global financings in Q4'21
1. J&T Express — $2.5B, Jakarta, Indonesia — E-commerce — Late-stage VC
2. Commonwealth Fusion Systems — $1.8B, Cambridge, US — Cleantech — Series B
3. Gopuff — $1.5B, Philadelphia, US — Retail — Late-stage VC
5
9 4. Regor Therapeutics — $1.5B, Shanghai, China — Biotech — Early-stage VC
6 7
2
5. Sierra Space — $1.4B, Broomfield, US — Spacetech — Series A
8
3 4 10
6. Lacework— $1.3B, San Jose, US — Network management software — Series D
1
7. GTA Semiconductor — $1.25B, Shanghai, China — Semiconductors — Early-stage VC
8. Nanjing LingHang Technology — $1.2B, Nanjing, China — Automotive — Series A
9. Thrasio — $1B, Walpole, US — E-commerce — Series D
10. Pupumall — $950M, Fuzhou, China — Retail — Late-stage VC
# Q4VC
18
Global US Americas | Europe | Asia
In Q4’21 US VC-backed companies raised
# Q4VC
19
US sees fourth straight quarter of record VC investment

The VC market in the US finished the year on a high note, setting a fourth consecutive record for VC investment in Q4’21, propelled by $1
billion+ funding rounds by thermonuclear power development company Commonwealth Fusion Systems, food delivery and consumer
good company Gopuff, space tourism company Sierra Space, cybersecurity firm Lacework, and e-commerce aggregator Thrasio.
Fundraising soars past $100 billion This, combined with the increasing global consciousness for climate change, an
enhanced willingness on the part of companies to invest in climate change solutions,
Fundraising activity in the US climbed well above $125 billion in 2021, significantly
and the range of climate-friendly initiatives included in the US’s Q4’21 infrastructure
higher than the previous high of $87 billion seen in 2020. A number of factors have
plan will likely continue to drive cleantech interest heading into 2022. Longer term, the
contributed to the rise, including a growing number of LPs — such as endowments,
infrastructure plan in particular could also spur a new era of investment in highly
university funds, high net worth individuals, and family offices — increasing their
innovative infrastructure solutions — like electrified roads.
allotments dedicated to the VC space.
The increase in fundraising in the US has driven a number of additional trends during Delivery sector continues to see robust interest and investment
2021, including an increase in specialized funds — such as the $2.2 billion crypto
VC investment in the delivery and logistics space continued at a strong pace in
fund raised by Andreessen Horowitz in June. As of the end of Q4’21, the fund was
Q4’21, with a range of diverse companies raising large funding rounds, including
fully deployed2. Proven fund managers have also increasingly taken the strong
autonomous delivery company Nuro ($600 million), Uber’s freight brokerage platform
fundraising environment as an opportunity to leave larger VC firms in order to create
Uber Freight ($550 million), and rapid delivery company Jokr ($260 million). Robust
their own niche funds.
interest in the delivery space is also acting as a springboard for VC investments in
related technologies like artificial intelligence, robotics, and autonomous vehicles.
Definition of cleantech evolving, driving more interest from VC
investors Health and biotech solutions remain attractive to VC investors
Over the past twelve months, the definition of cleantech in the US has evolved Over the past eighteen months and more, COVID-19 has driven strong interest in a
dramatically, moving far beyond the building of windmills and solar farms. In today’s wide-range of healthtech and biotech solutions, in addition to the accelerated use and
investment environment, cleantech encompasses everything from software to acceptance of digital technologies, tracking and monitoring tools, and remote
measure and monitor emissions outputs to mechanisms to utilize resources more services. During Q4’21, a number of diverse healthtech companies attracted $100
efficiently. These less capital-intensive forms of cleantech are generating significant million+ funding rounds, including digital back and joint pain clinic Hinge Health ($600
interest from VC investors — both from a risk and a cost perspective. million) and population health technology company Color ($100 million)3. Surging
interest in using technology to support and deliver a broader range of healthcare
services — such as mental health care — combined with an increased willingness to
use digital tools, will likely keep healthtech investment strong well into 2022.
2 https://www.cnbc.com/2021/12/15/crypto-investor-katie-haun-leaves-andreessen-horowitz-to-launch-fund.html
3 https://www.vcbay.news/2021/11/10/us-based-healthtech-startup-color-raises-usd-100-million-in-series-e-round/
# Q4VC
20
US sees fourth straight quarter of record VC investment, cont’d.

Fintech poised to start seeing consolidation Trends to watch for in 2022
VC investment in fintech remained quite strong in the US in Q4’21, led by a $735 VC investment in the US is expected to remain very strong in Q1’22, with areas
million raise by embedded investing company DriveWealth. While areas like like healthtech, B2B services, and cleantech gaining additional momentum.
wealthtech and insurtech remain big ticket areas of VC investment, more developed Proptech is also expected to see growing interest.
subsectors — like digital banking — are beginning to get saturated. Digital banks
are also seeing greater competition from traditional banks as they get smarter and The IPO market in the US is also expected to remain robust, however, the
embrace technologies to address their customers’ changing needs. The sector will number of IPOs could fall from 2021’s peak as companies increasingly focus
likely start to see some consolidation as the larger digital banks thrive and others on IPO quality and readiness over speed. One sector to watch in 2022 will be
find themselves challenged to survive. fintech; given the growing size and maturity of some US-based privately held
fintechs, more IPO exits could soon be on their horizon.
Exit activity in the US rises to major new height
Exit value in the US closed out 2021 almost three times higher than the previous
peak of $289 billion seen in 2020, while the number of exits also reached a record
high. While IPO activity is expected to remain high, the fervor for SPAC
transactions has continued to lessen as of Q4’21. Over the last quarter, a number
of companies that were considering SPAC mergers have stepped back their plans,
while others have decided to hold back going public until they are ready for a more
traditional IPO.
# Q4VC
21
Q4 2021 sees an all-time high in VC invested
“
Venture financing in the US
2014–Q4'21
The reality is that companies
2021 saw an unending quarter-over-quarter rise in
$100 4,500
VC invested in the US, even as deal volume
are just starting to fully
$90 flattened out throughout the year. The late stage appreciate the difficulties
4,000
saw an unprecedented rate of deal flow, with even associated with managing
$80 the earlier stages also seeing healthy if not quite
3,500 as historic funding volume. Boasting a huge bevy
remote or hybrid workforces —
$70 of unicorns that continued to raise significant and that’s on top of the
3,000 sums, while also seeing gargantuan inflows of challenges they already face
$60 liquidity thanks to public listings, the US
2,500 environment looks set to remain as heated as ever
attracting and retaining
$50 headed further into the 2020s, although some required talent in the first
2,000 caution is mounting. Although some companies place. Companies able to
$40 will continue to enjoy accelerations of their
1,500 business models thanks to ongoing concern
simplify and help with different
$30
around the pandemic, challenges stemming from parts of the HR and people
1,000 ripple effects are proliferating still, affecting supply management process are
$20
chains and talent pools in unforeseen ways.
going to be in high demand.
$10 500
$14.8
$22.1
$17.2
$19.9
$21.0
$21.5
$22.9
$20.4
$20.5
$26.9
$18.7
$16.5
$18.2
$22.4
$24.9
$23.0
$29.9
$31.6
$34.4
$48.3
$38.9
$35.7
$37.3
$32.6
$37.5
$36.6
$47.7
$44.9
$75.9
$80.0
$85.6
$88.2
This is no doubt going to lead
$0 0 to increasing VC investment
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
in HRtech here in the US and
”
2014 2015 2016 2017 2018 2019 2020 2021 globally.
Conor Moore
Global Co-Leader — Emerging Giants,
KPMG Private Enterprise, and Partner
KPMG in the US
# Q4VC
22
Investors remained ebullient in 2021

Median deal size ($M) by stage in the US Up, flat or down rounds in the US
2014–2021* 2014–2021*
$18 100%
$16.2
$16 90%
$14 80%
70%
$12
$10.0 60%
$10
50%
$8
40%
$6
30%
$4
20%
$2 $2.0
10%
$0 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
23
Every series sees a new high
“
Median deal size ($M) by series in the US
2014–2021*
With so much capital
$120 available in the US, it is
difficult to imagine venture
$105.0 investment slowing down
$100
anytime in the near future.
All types of investors,
$80
including many non-
traditional ones are jumping
on the pre-IPO investing
$60 $60.0 bandwagon and a vast
collection of private
company founders are
”
$40 taking advantage.
$30.0
$20
$11.6
$2.9
$0 $0.6 Jules Walker
2014 2015 2016 2017 2018 2019 2020 2021* Senior Director, Business
Development,
Seed Angel A B C D+ KPMG in the US
Note: Figures rounded in some cases for legibility.
# Q4VC
24
2021 finally sees a $1B figure at the late stage

Median pre-money valuation ($M) by series in the US
2014–2021*
$1,200
$1,000 $1,000.0
$800
$600
$400
$300.0
$200
$110.0
$35.0 $9.4
$0 $4.6
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
Note: Figures rounded in some cases for legibility.
# Q4VC
25
Most series see record sums invested

Deal share by series in the US Deal share by series in the US
12,000 $300
10,000 $250
8,000 $200
6,000 $150
4,000 $100
2,000 $50
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
26
After banner year, biotech retreats somewhat

Venture financing by sector in the US Venture financing by sector in the US
100% 100%
Transportation
90% 90%
Commercial Products
80% & Services 80%
Consumer Goods &
70% Services 70%
Software
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices &
0% 2021* Supplies 0%
2021*
2014
2015
2016
2017
2018
2019
2020
2014
2015
2016
2017
2018
2019
2020
Energy
# Q4VC
27
First-time funding finally resurges

Corporate participation in venture deals in the US First-time venture financings of companies in the US
2014–Q4'21 2014–2021*
$40 900 $30 5,000
800 4,500
$35
$25
4,000
700
$30
3,500
600 $20
$25
3,000
500
$20 $15 2,500
400
$15 2,000
300 $10
1,500
$10
200
1,000
$5
$5 100
$10.9
$15.4
$10.1
$12.8
$15.5
$16.8
$26.2
$15.2
$15.2
$15.8
$12.1
$18.5
$17.3
$22.2
$18.4
$33.9
$37.2
$36.5
$37.1
500
$15.3
$14.8
$14.9
$23.8
$5.4
$9.1
$5.7
$7.5
$9.0
$9.0
$8.9
$9.3
$7.8
$6.4
$6.3
$8.8
$9.6
$8.1
$9.6
$9.2
$9.7
$0 0 $0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021*
2014 2015 2016 2017 2018 2019 2020 2021
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by PitchBook,
PitchBook, January 19, 2022 January 19, 2022
# Q4VC
28
Historic exit trends reinforce investment

Venture-backed exit activity in the US
2014–Q4'21
$300 450 2021 closed with markets ripping even higher than before, with the
S&P 500 seeing no fewer than 68 record highs, a tally unseen since
400 the mid-1990s. Thanks to that performance, venture-backed
$250 companies, particularly unicorns, kept flocking to public markets,
350 leading to a historic year for exit value and volume for the US. It
remains to be seen how much longer such a torrid pace of exits can
$200 300 be maintained, but many of the same factors that encouraged such
market surges remain intact, from the sheer dominance of
250 incumbent tech giants to digitization to hybrid work enablement to
$150 massive government support for cleantech to realization of biotech
200 innovations. However, fiscal and monetary policies look set to exert
a greater influence on market fortunes in 2022, given the specter of
$100 150 inflation and ongoing political wrangling.
100
$50
$147.1
$104.9
$135.6
$135.4
$266.9
$189.2
$182.7
50
$23.7
$23.5
$21.1
$44.3
$11.7
$19.1
$23.2
$21.5
$19.1
$22.0
$21.5
$11.2
$33.7
$19.9
$16.2
$31.3
$19.5
$32.9
$34.8
$36.7
$49.6
$44.0
$24.0
$18.8
$29.5
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018 2019 2020 2021
Exit value ($B) Exit count
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by
PitchBook, January 19, 2022
# Q4VC
29
Public debuts set all-time highs

Venture-backed exit activity (#) by type in the US Venture-backed exit activity ($B) by type in the US
2014–2021* 2014–2021*
1,800 $900
1,600 $800
1,400 $700
1,200 $600
1,000 $500
800 $400
600 $300
400 $200
200 $100
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
30
LP appetite remains strong

US venture fundraising
2014–2021*
Maintaining a 700+ plateau of funds closed, multiple large firms were able to close
$140 800
on record-sized funds, leading to nearly $130 billion raised in the US throughout the
year. This will continue to exert upward pressure on market dynamics across the
$120 700 board, from funding rates to valuations. It remains to be seen how much discipline
investors can continue to exhibit.
600
$100
500
$80 … even after three straight years of strong
400 fundraising, LPs continue to exhibit strong appetite
$60
300
for venture exposure, to the tune of a
$40
staggering $130 billion+.
200
$20 100
$128.3
$39.2
$42.2
$50.4
$44.5
$73.6
$70.6
$86.9
$0 0
2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
31
A healthy proportion of midsized funds closed

Venture fundraising (#) by size in the US Venture fundraising ($B) by size in the US
2014–2021* 2014–2021*
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
$1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M $1B+ $500M-$1B $250M-$500M $100M-$250M $50M-$100M Under $50M
# Q4VC
32
With competition rising, first-time funds dwindle

First-time vs. follow-on funds (#) in the US First-time vs. follow-on funds ($B) in the US
2014–2021* 2014–2021*
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
First-time Follow-on First-time Follow-on
# Q4VC
33
Global | US Americas Europe | Asia
In Q4’21 VC-backed companies in the Americas raised
# Q4VC
34
VC investment in Americas remains strong as Latin America sees four new unicorns
VC investment in the Americas was very strong in Q4’21, driven by a record-breaking quarter in the US. Following three very strong quarters of VC
investment, Canada saw a significant drop-off in VC funding in Q4’21; despite the quarter-over-quarter decline, total VC investment in Canada during
Q4’21 was the highest the country has seen in a Q4. Following a remarkable high in Q3’21, VC investment in Brazil dropped slightly in Q4’21 — although it
was still the country’s second-best quarter of VC investment on record.
While megadeals remain big ticket, first-time financings see record VC market in Latin America maturing quickly
growth Th VC market in Latin America is evolving rapidly, with a growing number of startups
Megadeals continued to drive a significant proportion of VC investment in the raising larger fundirounds. The maturation of companies is readily apparent in the
Americas during Q4’21 — particularly in the US, which saw a $1.8 billion number of companies reaching unicorn status and the speed at which some are doing
investment in Commonwealth Fusion, a $1.5 billion investment in Gopuff, a so. During Q4’21, Latin America accounted for four new unicorns: logistics company
$1.4 billion raise by Sierra Space, a $1.3 billion raise by Lacework, and a $1 CargoX and SMB e-commerce enabler ng Olist in Brazil and e-commerce aggregator
billion raise by Thrasio, in addition to $500 million+ funding rounds by a breadth Merama and corporate credit focused fintech Clara in Mexico.
of companies including DriveWealth, Hinge Health, Nuro, Uber Freight, and
Corporate investment incredibly strong across Americas
others. While the presence of large megadeals has been a consistent trend
throughout 2021, the Americas also saw the number of first-time financings and Corporate VC investment in the Americas remained strong in Q4’21, contributing to
their associated deal value reach new records during the year. the region’s record annual high for number of CVC deals and CVC investment. Both
Canada and Brazil saw CVC investment jump considerably compared to their
VC investments in Canada taking more time; interest from previous records, highlighting the growing interest of corporates in those jurisdictions.
investors stays high
Many large companies in the Americas, particularly those in the US, are increasingly
Following three very robust quarters of investment, VC investors in Canada using VC investment as a means to encourage R&D more broadly and rapidly than
took a bit of a pause in Q4’21, taking more time to assess and complete due they could undertake internally. This has helped drive a wide range of sector-specific
diligence on potential deals. This, combined with a typical lull in deal activity innovations. In cases where the resulting technologies don’t align as desired,
over the winter holiday period likely accounted for the drop in VC investment corporates still have an opportunity to achieve strong financial returns. For example,
during the quarter. Increasing concerns around the Omicron variant, supply in Q4’21, Ford Motor and EV automaker Rivian announced that they would not work
chain issues, and inflation may also have also caused some distraction in the on a joint vehicle4. Despite the strategic decision to not move ahead together, Ford’s
Canadian VC market. investment in Rivian has been a financial success; as of Rivian’s Q4’21 IPO, Ford’s
AI remained a very hot sector for investment in Canada, helped by the country’s shares are estimated to be worth $10 billion based on an equity investment of
strong AI ecosystem including its talent base, education institutions, and array approximately $820 million5.
of startups. The broad applicability of AI solutions across sectors will likely keep
AI-focused investment in Canada strong headed into 2022. Healthtech and
4 https://www.cnbc.com/2021/11/19/ford-and-rivian-cancel-plans-to-jointly-develop-an-electric-vehicle.html
fintech also remained strong areas of investment in Canada during Q4’21.
5 https://www.cnbc.com/2021/11/10/fords-stake-in-ev-truck-start-up-rivian-is-worth-more-than-10-billion-in-first-day-
of-trading.html
# Q4VC
35
VC investment in Americas remains strong as Latin America sees four new unicorn , cont’d.
Canada sees record number of exits for second straight year
Exit activity involving VC-backed companies in the Americas rose to a new high in
2021, driven by a surge in exit activity in the US and Canada. While total exit value
was much smaller in Canada compared to the US, Canada’s exit activity was
particularly notable given the country had set strong records for both number of exits
and exit value in 2020 — and then eclipsed both in 2021. With valuations still high
and plenty of capital still available in the market, exit activity in Canada is expected
to remain strong into Q1’21
Trends to watch for in 2022
The Americas is expected to see robust VC investment heading into Q1’22. While
the US is expected to remain the dominant VC market in the region, other
jurisdictions within the Americas — particularly in Latin America — will increasingly
see strong and globally competitive companies emerge.
# Q4VC
36
Over $95 bil ion invested in Q4 alone

Venture financing in the Americas
2014–Q4'21
Thanks to historic tallies in the US but also across a growing swathe of other
$120 5,000
American nations, 2021 culminated as a record year across the board for the
entire region, benefiting significantly from massive rounds raised by unicorns
4,500
across Mexico, Brazil, Canada and elsewhere.
$100
4,000
3,500
$80
3,000
… VC invested stayed the course at a
$60 2,500
remarkable rate; the back half of the
2,000
year saw well over $190 billion
invested, concluding 2021’s remarkable run.
$40
1,500
1,000
$20
500
$15.5
$22.8
$18.1
$20.6
$21.7
$22.6
$23.7
$21.0
$21.3
$27.4
$19.5
$17.3
$19.0
$23.4
$26.0
$24.0
$31.6
$33.2
$35.8
$50.3
$40.9
$38.5
$40.4
$34.9
$39.5
$38.4
$50.0
$47.4
$81.1
$87.7
$96.7
$95.2
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
37
Round sizes double or more YoY

Median deal size ($M) by stage in the Americas Up, flat or down rounds in the Americas
2014–2021* 2014–2021*
$18 100%
$16 90%
$15.5
$14 80%
70%
$12
60%
$10 $9.7
50%
$8
40%
$6
30%
$4
20%
$2 $2.0 10%
$0 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
38
The late stage grows more inflated

Median deal size ($M) by series in the Americas
2014–2021*
$120
$110.0
$100
$80
$60 $60.0
$40
$30.0
$20
$11.3
$2.7
$0 $0.6
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
39
Unicorns in South America prop up valuations

Median pre-money valuation ($M) by series in the Americas
2014–2021*
$1,200
$1,000 $1,000.0
$800
$600
$400
$300.0
$200
$110.0
$35.0
$9.3
$0 $4.5
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
40
Angel & seed volume rebound

Deal share by series in the Americas Deal share by series in the Americas
14,000 $350
12,000 $300
10,000 $250
8,000 $200
6,000 $150
4,000 $100
2,000 $50
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
41
Software bounces back

Venture financing of VC-backed companies by sector Venture financing of VC-backed companies by
in the Americas sector in the Americas
2014–2021*, # of closed deals 2014–2021*, VC invested ($B)
90% Commercial Products 90%

& Services
80% Consumer Goods & 80%
Services
70% 70%
Software
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices & Supplies
0% 0%
2021*
2014
2015
2016
2017
2018
2019
2020
2021*
2014
2015
2016
2017
2018
2019
2020
Energy
# Q4VC
42
Q4 caps a historic year for Canadian startups
“
Venture financing in Canada
2014–Q4'21
IPOs exits in Canada are
$6,000 350 After a historic first half of the year, 2021 concluded
in the Canadian venture ecosystem with a historically
incredibly strong right now.
robust tally of close to $2 billion invested, with Although, the surge really
300 standouts such as Foresight Cleantech’s $130 million
$5,000 started in 2020 when company
Series E or fintech Ledn’s $70 million raise, both in
December 2021.
valuations started to go through
250
$4,000 the roof and a lot of companies
that wouldn’t have thought
200
about going public before all of
$3,000
150
32 separate companies a sudden realized it was an
option. As long as money
$2,000 have now raised $100M continues to be out there and
100
or more in the Canadian valuations remain relatively
$1,000
ecosystem, with three alone robust, we’ll probably keep
$1,352.2
$1,275.4
$1,094.5
$1,754.3
$1,539.1
$1,147.6
$1,072.5
$1,173.4
$2,940.2
$4,793.3
$3,081.4
$1,919.0
50
$342.9
$368.8
$555.8
$546.3
$494.7
$580.7
$525.5
$412.3
$595.1
$327.1
$535.3
$683.2
$306.8
$732.6
$938.8
$680.9
$719.6
$696.0
$904.7
$825.0
seeing good exits here into Q1
”
doing so twice… and Q2’22.
$0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($M) Deal count

Sunil Mistry
Partner, KPMG Private Enterprise,
Technology, Media and
Telecommunications,
KPMG in Canada
# Q4VC
43
2021 closes as best year on record for Mexico

Venture financing in Mexico
2014–Q4'21
$1,400 50 2021 saw some of the most consistent flows in funding, from outlier rounds to sheer
consistency in approximately 30+ transactions closed per quarter, across the Mexican
45 venture ecosystem. Granted, the impact of outliers was significant in terms of VC
$1,200 invested, with six companies raising $100 million in more throughout the year — Kavak
40
and Konfio accounting for two separate large fundraises apiece — but the sheer number
$1,000 35 of companies raising tens of millions boded well for future growth in the Mexican market.
30
$800
25
$600
20
$400 15 2021 saw multiple outlier rounds, signaling the

10 Mexican ecosystem is potentially
$1,161.3
$1,309.3
$200
beginning to see an uptick in more
$132.2
$143.9
$308.1
$140.3
$207.4
$259.6
$201.7
$630.5
$279.7
$784.8
$70.4
$88.8
$16.0
$19.0
$21.7
$52.5
$72.8
$17.5
$26.0
$60.4
$22.5
$17.9
$34.3
$67.7
$57.1
$80.9
$41.1
$54.6
5
$5.3
$9.6
$0 0
consistent, robust funding…
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021
”
# Q4VC
44
2021’s second half sees staggering $5.8B
“
Venture financing in Brazil
2014–Q4'21
Q4 ended with the 2nd highest
Thanks to a bevy of outlier financings, Brazil finished
$3,500 140
the year strong with a total of 22 companies raising
venture financing volume to
at least $100 million or more throughout its duration. date in Brazil. On Q4 alone, we
$3,000 120 Moreover, they spanned a plethora of sectors, saw the emergence of at least
signaling growing innovation in multiple segments of
the Brazilian socioeconomic ecosystem. That bodes
five new unicorns in the
$2,500 100
well for potential future growth across multiple key country, such as: Olist
segments of any growing economy. (e-commerce solutions
$2,000 80
ecosystem for SMBs), Facily
$1,500 60 (low-ticket social commerce
marketplace), CargoX (logtech
$1,000 40 rebranded Frete.com), Daki
(superfast grocery e-commerce
$1,093.6
$1,522.2
$3,150.5
$2,660.1
$500 20 and delivery platform) and
$152.2
$213.5
$166.7
$157.4
$306.1
$127.6
$117.7
$125.7
$102.6
$140.6
$195.5
$205.0
$239.7
$430.5
$306.2
$997.4
$158.9
$499.3
$305.9
$493.4
$571.6
$770.7
$589.6
$851.8
$97.9
$66.5
$90.9
$86.9
Cloudwalk (next-gen payments

$0 0
merchant acquirer). The activity
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021
is likely to remain robust, as
VC liquidity is still high even
after record investment rounds
”
in 2021.
Rodrigo Guedes
Managing Director,
KPMG in Brazil
# Q4VC
45
Capital concentrates in fintech & infrastructure

Top 10 financings in Q4'21 in Americas
6 1
2 1. Commonwealth Fusion Systems — $1.8B, Cambridge, US — Cleantech — Series B
9 5
3 2. Gopuff — $1.5B, Philadelphia, US — Retail — Late-stage VC
10 4 7 8
3. Sierra Space — $1.4B, Broomfield, US — Spacetech — Series A
4. Lacework— $1.3B, San Jose, US — Network management software — Series D
5. Thrasio — $1B, Walpole, US — E-commerce — Series D
6. Better — $750M, New York, US — Fintech — Late-stage VC
7. Celsius Network — $750M, Hoboken, US — Blockchain — Series B
8. DriveWealth — $735.3M, Chatham, US — Fintech — Series D2
9. Airtable — $735M, San Francisco, US — Cloudtech & dev ops — Series F
10. Forte — $725M, San Francisco, US — Blockchain — Series B
# Q4VC
46
Global | US | Americas Europe Asia
In Q4’21, European VC-backed companies raised
# Q4VC
47
Jurisdictions across Europe rake in record levels of VC investment in 2021

VC investment in Europe was incredibly strong throughout 2021, propelled by record-levels of investment in many individual
jurisdictions, including the UK, Germany, Israel, Ireland, France, Spain, and the Nordic Region. A robust funding environment,
increasing valuations, and a growing number of unicorns highlighted a perfect storm of opportunities for VC investors in Europe.
Fintech generates heat as digital banks raise large Q4’21 VC rounds Europe sees diverse crop of unicorns in Q4’21
Q4’21 saw several digital banks in Europe raise large VC rounds, with a $900 million The increasing number of unicorn births in Europe during 2021 highlights the growing
raise by Germany-based N26, and the $300 million raises by UK-based Zopa among maturity of the European VC ecosystem. Q4’21 saw 17 new unicorn companies in
the largest deals of the quarter. A number of fintechs more broadly also attracted Europe, representing seven countries (i.e., UK, Germany, Israel, Spain, France,
sizeable rounds, highlighting the ever-expanding breadth of the sector. B2B was Sweden, and Finland) and industries ranging from fintech and healthtech to travel
particularly notable, with Germany-based B2B payments company Billie raising and HRtech.
$298 million.
Annual VC investment in the UK almost double previous high
Hrtech gaining traction Europe — poised for rapid growth
The VC market in the UK was incredibly robust in 2021, with record high deal volume
With COVID-19 changing the model of work at a fundamental level in Europe over the and a level of investment over double the previous record high. IPO activity was also
past two years, there has been an increasing emphasis on solutions aimed at helping up considerably during the year. In addition to fintech, healthtech was a particularly
organizations recruit and manage their people more effectively. VC investor interest in strong sector of VC investment in the UK, with healthtech players in the country
HRtech has skyrocketed, with investors pouring money into HRtech companies across growing faster than in many other jurisdictions. Heading into 2022, the BNPL space
the region. During Q4’21, Germany based SME-focused HR platform Personio raised will be an area to watch as the FCA looks to introduce regulations for BNPL
$270 million in Europe’s largest HRtech funding round of the quarter. Given the serious companies; this could drive some consolidation in the space.
war for talent both in Europe and globally, VC investment in HRtech will likely explode
heading into 2022.
Germany sees dramatic surge in VC funding
VC investment in Germany surged in 2021, with increasingly high valuations, larger
COP26 drives ESG interest higher deals sizes, and a growing stable of unicorn companies reflecting a broad mix of
Over the course of 2021, VC investment in ESG related solutions climbed in Europe as sectors. The IPO market in Germany also gained steam, with more companies
VC investors and corporates recognized the demand for net zero and ESG compliant considering IPOs as a potential exit strategy than have historically — although the
solutions and operations. The COP26 conference, which occurred in Europe during need to improve IPO readiness led some to extend their IPO timelines. AI was a big
Q4’21, helped drive additional attention to the space. With ESG increasingly embedded ticket for investment in Germany during Q4’21 given it’s widespread applicability. At a
in mainstream thinking, it is likely that VC investments in a broad range of solutions — sector level, fintech and delivery were both very hot areas of investment — as
including operations management, emissions tracking, net zero infrastructure, and evidenced by N26’s $900 million raise and Gorilla’s near $1 billion raise in Q4’21.
mobility will likely continue to grow heading into 2022. Agtech and ESG were also high on the radar of VC investors in Germany.
# Q4VC
48
Jurisdictions across Europe rake in record levels of VC investment in 2021, cont’d.

VC investment in Israel soars to record quarterly high Micro-mobility hot in Ireland as government moves to regulate scooters
The VC market in Israel ended 2021 with a record quarter of investment, led by a $300 Micro-mobility gained a lot of attention in Ireland in Q4’21 as the government passed
million raise by gaming company Moon Active. With considerable capital available in legislation allowing e-bikes and e-scooters on roads. The recognition for growing
the market, the major challenge promising startups are facing in Israel is a talent personal transport options has ben seen as a positive move, with a number of
shortage and the need to attract and retain critical talent in order to grow and scale. e-mobility companies looking at regulation as a means to enhance both acceptance
Israel is also beginning to see consolidation in areas like cybersecurity as companies for e-mobility options and safety for users. The government’s focus on enhancing
look to gain scale in order to attract interest from larger VC firms. road safety for all users has generated interest among e-mobility companies across
Nordics region gaining attention from international investors Europe and could lead to additional investments in the space in 2022 and beyond.
During Q4’21, Ireland’s government also announced a €90 million Innovation Fund
The VC market ecosystem in the Nordics region evolved considerably over the last focused on early stage companies, which will launch in 20226.
year, with a growing number of companies raising larger rounds and beginning to
consider IPO plans. Despite a drop in total VC investment in Q4’21, VC investment for Trends to watch for in 2022
the year was well above the previous record high. The region continued to grow on the Both VC and CVC investment in Europe are expected to remain strong in Q1’22.
radar of international investors, helped in Q4’21 by Helsinki hosting Slush — a Fintech, delivery, and healthtech will continue to be hot sectors, while investment in
successful conference focused on connecting companies with VC and other investors. insurtech and ESG will continue to gain momentum. Agtech is also expected to gain
significant attention in 2022 as early stage agtechs across the region grow and begin
to attract larger funding rounds.
6 https://www.irishtimes.com/business/companies/venture-capital-funding-for-irish-smes-rose-almost-20-in-q3-to-
231m-1.4734683
# Q4VC
49
Europe sees all-time records set in 2021

Venture financing in Europe
2014–Q4'21
As could be foreseen given the historic quarterly results throughout last year, the
$40 3,000 European continent was on pace for its highest tallies of both capital invested and
count of completed venture transactions ever, with healthy rates across all stages
$35 of financings. The European startup ecosystem continues to diversify and
2,500
deepen, seeing more unicorns minted each quarter across different segments,
$30 with some beginning to expand abroad into other markets.
2,000
$25
$20 1,500
… after record-breaking quarters, the
$15
1,000 European ecosystem had a year for the ages
$10 given Q4’s robust tallies, sending 2021 to all-
$5
500
time new highs …
$10.8
$12.2
$11.0
$10.7
$11.4
$15.8
$15.7
$27.3
$37.9
$29.4
$28.0
$4.2
$3.8
$4.4
$4.0
$5.2
$4.9
$6.0
$5.0
$6.1
$4.8
$4.5
$5.3
$5.2
$7.0
$6.5
$9.6
$8.5
$8.9
$7.5
$9.5
$9.2
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
50
The late stage surges to record

Median deal size ($M) by stage in Europe Up, flat or down rounds in Europe
2014–2021* 2014–2021*
$8 100%
90%
$7 $6.9
80%
$6
70%
$5 60%
$4 50%
40%
$3
$2.5 30%
$2
20%
$1.3
$1
10%
$0 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
51
Multiple metrics nearly double YoY

Median deal size ($M) by series in Europe
2014–2021*
$160
$150.0
$140
$120
$100
$80
$71.5
$60
$40
$30.0
$20
$9.1
$1.7
$0 $0.7
2014 2015 2016 2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
52
The latest stage closes near to unicorn range

Median pre-money valuation ($M) by series in Europe
2018–2021*
$1,000
$947.0
$900
$800
$700
$600
$500
$400
$300
$254.8
$200
$100 $89.6
$21.9
$5.5
$0
$3.3
2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
53
Early-stage volume stays steady

Deal share by series in Europe Deal share by series in Europe
6,000 $100
$90
5,000
$80
$70
4,000
$60
3,000 $50
$40
2,000
$30
$20
1,000
$10
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
54
Software ecosystems surge higher

European venture financings by sector European venture financings by sector
90% Commercial 90%

Products & Services
80%
Consumer Goods & 80%
Services
70% 70%
Software
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices &
0% Supplies 0%
2021*
2014
2015
2016
2017
2018
2019
2020
2021*
2014
2015
2016
2017
2018
2019
2020
Energy
# Q4VC
55
First-time financings resurge historically

Corporate VC participation in venture deals in Europe First-time venture financings of companies in Europe
2014–Q4'21 2014–2021*
$20 600 $12 3,500

$18
500 $10 3,000
$16
$14 2,500
400 $8
$12
2,000
$10 300
$6
$8 1,500
200
$6 $4
1,000
$4
100
$11.7
$17.8
$13.2
$11.5
$2 $2
$1.5
$1.1
$1.9
$1.0
$1.2
$2.0
$1.4
$1.3
$2.8
$1.9
$1.7
$2.0
$1.9
$2.7
$2.2
$3.0
$2.6
$3.4
$3.4
$3.9
$3.9
$5.3
$4.9
$3.4
$4.1
$5.7
$7.7
$6.4
500
$11.0
$3.0
$2.9
$3.1
$4.7
$4.1
$3.7
$4.2
$0 0
$0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021*
2014 2015 2016 2017 2018 2019 2020 2021
.
Although the second half of 2021 saw a decline in financing volume affiliated with corporate Once again, a caveat must be noted: In a complex environment such as Europe, first-time
players from direct investors to their venture arms, given that investment participation was fundings may take longer to be ascertained and confirmed. That said, given the final tallies
historically healthy, and moreover, they kept joining in rounds on the larger side, this trend is from Q4 2021, it is clear last year saw a truly historic resurgence in VC invested across nearly
likely a temporal quirk more than anything else. 3,000 completed first-time fundings, boding well for the continent’s push to further invigorate its
startup ecosystems.
# Q4VC
56
A record Q3 boosts entire year

Venture-backed exit activity in Europe
2014–Q4'21
$100 350 Although Q4 2021 saw a slide in completed exits and aggregate exit value, all in all,
the sheer sum of nearly $170 billion in completed liquidity events last year should
$90 help not only replenish firms’ fundraising efforts as they return significant sums to
300
their investors, but also bodes well for recycling of capital back into the ecosystem.
$80
$70 250
$60
200
$50 … with close to $170 billion in exit value
150
$40
seen in 2021 to date, liquidity trends continue
$30 100
to exert significant positive pressure on investment
$20
50
rates across the continent going further into the
2020s.
$16.9
$30.8
$12.8
$11.2
$12.3
$33.8
$33.3
$86.9
$15.5
$10
$3.7
$2.0
$6.4
$5.9
$5.3
$4.1
$8.2
$7.1
$3.6
$4.2
$2.0
$5.3
$8.6
$3.1
$4.9
$2.5
$5.3
$3.1
$2.5
$5.1
$8.2
$1.7
$4.2
$0 0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
57
M&A surges in volume, as listings propel value

Venture-backed exit activity (#) by type in Europe Venture-backed exit activity ($B) by type in Europe
2014–2021* 2014–2021*
1,200 $180
$160
1,000
$140
800 $120
$100
600
$80
400 $60
$40
200
$20
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
58
European fund coffers refil handsomely

European venture fundraising
2014–2021*
$30 350 As noted in the prior edition of the Venture Pulse, the sharp decline in the tally of funds
closing in 2021 to date is more driven by the fact that the prior five years saw elevated levels
of fundraising volume than anything else. Venture firms do not always raise large funds every
300 single year, unless at a sufficient scale, and many European venture firms are not yet that
$25
large to have multiple strategies. However, larger firms that had the track record and
250
resources to do so, plus established investor base, were able to close on sufficiently large
$20 pools of capital that well over $25 billion was closed for the second time in the decade, which
will aid future funding levels.
200
$15
150
… 2021 is now the second year that capital
$10
100 committed to European fund managers has exceeded
$5
$25 billion.
50
$12.3
$11.9
$18.9
$25.7
$18.1
$22.1
$22.6
$25.5
$0 0
2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
59
Midsized funds rebound in volume

Venture fundraising (#) by size in Europe First-time vs. follow-on venture funds (#) in Europe
2014–2021* 2014–2021*
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30%
30%
20%
20%
10%
10%
0%
2014 2015 2016 2017 2018 2019 2020 2021* 0%
2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
60
A subdued Q4 stil leaves 2021 with records
“
Venture financing in the United Kingdom
2014–Q4'21
We have definitely noticed a
$12 900 rise in investments into ESG-
focused businesses in the
800
UK. While we haven’t
$10
700 necessarily seen many
massive deals yet, there’s
$8 600 certainly a lot of interest in
the space, in part driven by
500
the recent COP26 conference
$6
400 in Glasgow. We’re also
seeing more government
$4 300 grants and programs being
introduced that are
200
specifically aimed at helping
$2
to drive investment in areas
”
100
$10.0
such as Net Zero.
$1.0
$1.2
$1.0
$1.3
$1.5
$1.0
$2.2
$2.0
$1.6
$1.5
$1.5
$1.6
$1.4
$2.8
$2.3
$4.1
$2.3
$2.9
$2.7
$3.2
$3.9
$3.5
$3.5
$2.9
$3.2
$3.7
$3.8
$4.8
$9.3
$8.8
$7.3
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
Deal value ($B) Deal count

Warren Middleton
Lead Partner for Emerging Giants
CoE in the UK,
KPMG in the UK
# Q4VC
61
London sees record-breaking Q4

Venture financing in London
2014–Q4'21
$4.0 400
$3.5 350
$3.0 300
$2.5 250
$2.0 200
$1.5 150
$1.0 100
$0.5 50
$0.2
$0.3
$0.1
$0.3
$0.2
$0.1
$0.2
$0.2
$0.5
$0.5
$0.3
$0.5
$0.5
$0.6
$0.3
$0.5
$0.6
$0.6
$0.6
$0.7
$0.9
$0.5
$1.2
$1.1
$0.9
$0.9
$0.9
$0.8
$0.7
$2.2
$1.4
$3.4
$0.0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
62
2021 closes as a banner year for Irish VC
“
Venture financing in Ireland
2014–Q4'21
Micro-mobility has gained a
lot of traction due to
$900 250
concerns around the safety
$800 of mass public transit in a
$700
200 Covid environment and the
desire for greener
$600
transportation options.
150
$500 The challenge has been
safety. By creating a legal
$400
100 framework to regulate e-
$300 scooter’s and e-bike’s, the
Irish Government is making
$200
50
the roads safer for all users.
$266.7
$180.9
$187.3
$223.1
$170.8
$315.0
$101.2
$146.1
$258.6
$201.0
$112.9
$175.0
$102.8
$406.0
$517.3
$410.4
$137.0
$495.6
$179.2
$127.1
$110.4
$225.9
$176.6
$466.1
$312.4
$768.9
$505.0
$294.6
$100 This will undoubtedly open
$32.4
$96.8
$38.5
$74.3
$0 0 the way for further
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 investment in e-mobility in
”
2014 2015 2016 2017 2018 2019 2020 2021 Ireland.
Anna Scally
Partner, Head of Technology and
Fintech Lead,
KPMG in Ireland
# Q4VC
63
Q4 just barely claims record VC invested tally
“
Venture financing in Germany
2014–Q4'21
Here in Germany, we are
$7,000 350 seeing companies interested
in IPO exits starting to
$6,000 300
recognize that in order to go
public successfully, they
$5,000 250
need to take the time to
ensure they are prepared —
$4,000 200
even if it means taking an
$3,000 150
extra year or two. The sense
of urgency that permeated
$2,000 100 the market earlier this year
has faded somewhat — and
that will likely lead to fewer
$1,759.8
$1,090.3
$1,229.2
$1,625.9
$1,574.5
$1,179.4
$1,453.0
$2,004.0
$1,479.0
$1,287.1
$1,841.6
$2,159.1
$2,275.1
$3,324.5
$5,888.9
$4,462.6
$5,918.1
$1,000 50
$525.8
$431.7
$407.5
$631.1
$923.3
$785.6
$594.9
$569.1
$555.8
$710.2
$581.2
$830.0
$897.7
$954.9
$773.0
but higher quality exits
”
$0 0 heading into 2022.
2014 2015 2016 2017 2018 2019 2020 2021
Dr. Ashkan Kalantary
Partner, Deal Advisory Venture
Services
KPMG in Germany
# Q4VC
64
Berlin’s ecosystem surges in year-end finish
“
Venture financing in Berlin
2014–Q4'21
Many of the big corporates
$4,500 160 are feeling a lot of pressure to
$4,000
enhance their core business
140
models — pressure that has
$3,500
120 only grown and increased
$3,000 during the pandemic. This has
100 driven an explosion of growth
$2,500
in CVC investment because
80
$2,000 companies now recognize
60 how important CVC
$1,500
investment is to helping them
40
$1,000 respond quickly to the
$1,174.0
$1,236.2
$1,243.4
$1,637.5
$1,804.2
$3,149.8
$2,877.3
$4,025.3
challenges they are facing in
$413.0
$203.4
$922.7
$149.6
$903.1
$511.2
$748.5
$312.3
$229.5
$342.8
$178.5
$368.3
$323.2
$990.5
$424.4
$415.5
$452.1
$177.4
$967.0
$491.0
$483.7
$722.2
$628.2
$960.2
$500 20
a changed business
$0 0 environment. Given the
immense amount of change
2014 2015 2016 2017 2018 2019 2020 2021
that many corporates need to
make, CVC investment will
”
likely remain high for a while.
Tim Dümichen
Partner, KPMG in Germany
# Q4VC
65
Thanks to mega-rounds, Spain sets Q4 record

Venture financing in Spain
2014–Q4'21
$1,600 160
$1,400 140
$1,200 120
$1,000 100
$800 80
$600 60
$400 40
$1,242.5
$1,470.8
$1,498.8
$200 20
$114.8
$170.6
$141.1
$158.1
$377.5
$151.6
$153.7
$295.3
$191.1
$317.9
$254.7
$451.3
$137.7
$157.5
$461.8
$342.1
$339.2
$353.9
$274.2
$672.0
$366.0
$397.1
$658.5
$99.0
$48.7
$87.1
$99.3
$88.4
$69.1
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
66
2021 remains marked by mega-rounds

Venture financing in France
2014–Q4'21
$5,000 300
$4,500
250
$4,000
$3,500
200
$3,000
$2,500 150
$2,000
100
$1,500
$1,000
50
$1,083.4
$1,310.7
$1,049.7
$1,372.6
$1,460.1
$1,001.5
$1,282.1
$1,805.9
$1,463.4
$2,247.7
$1,888.9
$1,725.7
$4,407.9
$3,491.8
$2,288.8
$369.4
$409.8
$367.1
$332.5
$465.6
$483.6
$659.7
$304.9
$444.2
$515.6
$477.4
$887.6
$796.0
$689.5
$782.6
$564.3
$794.8
$500
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
67
The Paris ecosystem stays strong to finish

Venture financing in Paris
2014–Q4'21
$4,000 140
$3,500 120
$3,000
100
$2,500
80
$2,000
60
$1,500
40
$1,000
$1,012.6
$1,105.6
$1,606.4
$3,537.7
$1,774.3
$1,471.0
$500 20
$155.3
$163.2
$208.8
$192.6
$111.4
$292.3
$435.5
$279.8
$299.5
$345.0
$461.8
$613.3
$473.4
$434.7
$247.4
$706.8
$894.6
$416.5
$672.2
$766.3
$990.6
$446.2
$863.8
$850.7
$876.9
$83.9
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
68
After unicorn-dominated H1, activity subsides
“
Venture financing in the Nordics
2014–Q4'21
The market is very hot in the
$7,000 350 Nordic region, with a lot of
interest coming in from
$6,000 300 international investors. It
seems like every quarter we
$5,000 250 see at least one major
megaround and then a lot of
$4,000 200 mid-sized funding rounds. It’s
this combination that is driving
$3,000 150
the continuous growth in
investment value. The
continuous turn of new deals
$2,000 100
and larger deals will help the
ecosystem to grow when part
$1,351.8
$1,135.3
$2,021.9
$1,040.1
$1,539.7
$2,363.6
$1,778.6
$4,080.7
$6,534.4
$2,219.8
$2,114.7
$1,000 50
of that money is flowing back
$371.1
$319.0
$193.6
$643.7
$460.7
$900.3
$363.6
$458.8
$295.5
$388.1
$625.0
$600.4
$509.0
$528.2
$682.0
$654.2
$892.3
$550.8
$696.7
$708.1
$973.4
to early-stage funds and
$0 0
companies after exits or late-
”
stage secondary transactions.
2014 2015 2016 2017 2018 2019 2020 2021
Jussi Paski
Head of Startup Services
KPMG in Finland
# Q4VC
69
At massive $4.3 bil ion, Israel ends 2021 strong
“
Venture financing in Israel
2014–Q4'21
VC investment in Israel
$5,000 200 continues to be very strong,
although we’re also starting to
$4,500 180
see a lot more focus on
$4,000 160 consolidations — particularly
in the cyber sector. A lot of
$3,500 140
companies are working to
$3,000 120 consolidate, not only to run up
valuations but also to get the
$2,500 100
people they needed to grow
”
$2,000 80 and scale.
$1,500 60
$1,000 40
$1,035.5
$1,184.3
$1,059.0
$1,002.2
$1,015.8
$1,145.2
$1,460.6
$1,741.6
$2,519.7
$3,084.2
$2,457.5
$4,329.2
$581.8
$301.1
$256.7
$405.2
$714.3
$309.2
$304.1
$465.7
$781.9
$574.1
$540.5
$231.2
$603.1
$602.9
$697.6
$704.7
$748.2
$921.7
$726.9
$939.1
$500 20
Dina Pasca-Raz
Head of Technology
$0 0 KPMG in Israel
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
70
Foodtech, fintech & marketplaces dominate

Top 10 financings in Q4'21 in Europe
1. N26 — $900M, Berlin, Germany — Fintech — Series E

8
2 1 2. Flink — $750M, Berlin, Germany — Foodtech/e-commerce — Series B
7
3. Greeneden Topco — $580M, Luxembourg — Commercial services — Late-stage VC

3
4. Orca Security — $550M, Tel Aviv, Israel — Cybersecurity — Series C
6 5
5. Clikalia — $523.4M, Madrid, Spain — Real estate tech — Early-stage VC
4
10 6. Jobandtalent — $502.1M, Madrid, Spain — HR tech — Series E
7. SellerX — $500M, Berlin, Germany — E-commerce platform — Early-stage VC
8. Storfund — $410M, London, UK — Fintech — Early-stage VC
9. Pleo — $350M, Copenhagen, Denmark — Fintech — Series C
10. Future Meat — $347M, Rehovot, Israel — Foodtech — Series B
# Q4VC
71
Global | US | Americas | Europe Asia
In Q4'21, VC-backed companies in the Asia region raised
# Q4VC
72
Q4’21 VC investment in Asia holds strong — contributes to annual record high

VC investment in Asia remained quite strong in Q4’21, helping lift total VC investment to a new record high. A number of companies
across the Asia Pacific region attracted large deals, including Indonesia-based J&T Express ($2.5 billion), and China-based
companies — Regor Therapeutics ($1.5 billion), GTA Semiconductor ($1.25 billion) and Nanjing LingHang Technology ($1.2 billion),
Singapore-based MoonPay ($555 million), and India-based PharmEasy ($350 million).
Artificial intelligence big winner of China focused investment in Q4’21 IPO activity soars in India in Q4’21
VC investment in China remained solid in Q4’21, propelled by a number of large deals Exit activity was robust in Asia during 2021, with China seeing a massive start to the
involving AI-driven companies, including Nanjing LingHang Technology ($1.2 billion), year in terms of deal value and then declining sharply in the second-half of the year,
Dreame Technology ($558 million), and Avatar Technology ($377 million). The quarter and India starting on a cooler note and really heating up in Q4’21 with the IPOs of
also saw AI company SenseTime raise $740 million in its debut on the HKSE. online cosmetics company Nykaa and digital payments firm Paytm. Nykaa raised
While some sectors in China have seen VC investment dry up in recent quarters due to $722 million in its October IPO7, while digital payments firm Paytm held a $2.4 billion
changes in regulatory guidance, others continued to attract interest and VC investment — dual-listing on the Bombay and National Stock Exchanges in November8. The
among them, advanced manufacturing, electric vehicle manufacturing, renewable energy, booming stock market in India has likely helped drive continued interest in the VC
green technologies, and healthcare and biotech. market, as VC investors gained increasing confidence that they can get good exits
from their investments in the country.
VC investment in India remains strong, despite drop following record Q3’21 In Hong Kong (SAR, China), IPO activity slowed considerably in Q4’21 amidst
VC investment in India dropped dramatically in Q4’21 compared to the record high set in general market volatility and liquidity, tensions related to regulatory changes to data
Q3’21. Despite the optics, however, Q4’21 was India’s second-best quarter of VC security and VIE structures. However, the pace of listing is expected to pick up in
investment ever. A growing economy, stable government policies, and a growing middle 2022 as more pre-IPO and US listed mainland Chinese companies are expected to
class have all contributed to the upswell in interest from VC investors. Shifting policy choose to list in Hong Kong (SAR, China) as they are re-evaluating their IPO
directions in China have likely also helped drive addition investment into India, particularly strategies in light of US listing challenges. The introduction of the new listing regime
in sectors not seen as a priority by China’s Central Government. From a sector for special purpose acquisition companies (SPACs) by the Hong Kong Exchange in
perspective, fintech was a very strong area of VC investment in India during Q4’21, in December is also expected to make Hong Kong (SAR, China) an attractive location
addition to healthtech, B2B services, and direct-to-consumer platforms. for high growth and innovative companies from mainland China and South East Asia
to list in Hong Kong (SAR, China).
Number of CVC deals reaches record high in Asia
Corporate VC activity was very strong in Asia in 2021, with the number of CVC deals reaching a
record high and CVC investment falling just shy of one. India, in particular, saw a steep rise in both
the number of CVC deals and the total of CVC investment compared to previous highs.
7 https://beautymatter.com/articles/indias-nykaa-raises-heavily-oversubscribed-722-million-ipo
8 https://fortune.com/2021/10/29/paytm-ipo-india-largest-2021-share-sale-zomato-china-crackdown/
# Q4VC
73
Q4’21 VC investment in Asia holds strong — contributes to annual record high , cont’d.
India sees record year for unicorns in 2021 Trends to watch for in 2022
During 2021, India saw over fifty new unicorn companies — a major jump from VC investment in Asia will likely remain strong heading into Q1’22. In China, ESG
previous years. During Q4’21, the country saw 14 new unicorns birthed — ranging is well-positioned to see an increase in investment, given the focus of China’s
from healthtechs PristynCare and CureFit to insurtech Acko General Insurance, Central Government on greening the economy and goal to become the largest
home rental platform NoBroker, and digital credit platform Slice. The breadth of new market for electric vehicles.
unicorns in India highlights the growing breadth of India’s startup ecosystem and
maturity of startups across a range of sectors. Following 2021’s record number of unicorn births, there are high expectations that
India’s stable of unicorns will grow even further in 2022 as rapidly maturing
VC market in Japan continues to mature as funding reaches new high companies in a wide-range of sectors attract larger investments. Fintech, edtech,
Japan continued to see strong VC investment activity in Q4’21, capping off a record and ecommerce are expected to remain hot areas of VC investment, although all
year that saw the country attract a record $4.5 billion in VC funding. A rapidly three sectors could also see some consolidation as smaller players look to gain
evolving startup ecosystem, growing number of emerging companies, and scale or are acquired by their larger and better capitalized counterparts.
increasing deal sizes have all helped bring attention and foreign VC investment to
Japan. During Q4’21, biotech firm AculysPharma9 and sneaker marketplace Soda
Inc10 became the first Japanese startups to receive investment from SoftBank’s
Vision Fund. Exit Activity in Japan also doubled year-over-year to $7.6 billion, led
by PayPal’s acquisition of buy-now-pay-later company Paidy11 in Q3’21.
9 https://aculys.com/en/aculys-pharma-closes-us60-million-series-a-financing/
10 https://prtimes.jp/main/html/rd/p/000000025.000043703.html
11 https://newsroom.paypal-corp.com/2021-09-07-PayPal-To-Acquire-Paidy
# Q4VC
74
2021 finishes strong
“
Venture financing in Asia
2014–Q4'21
One area where there’s a
It is safe to say the Asia Pacific ecosystem has
$60 3,500 lot of room for VC
completely rebounded from the recent pandemic-
driven nadir of funding declines. 2021 saw the investment growth in China
3,000 highest quarter of VC invested on record at $51.7 is ESG. The government
$50 billion, while mega-rounds continued to flow across
has an absolute focus on
the entire continent throughout the year, leaving 2021
2,500 with a mammoth $181.2 billion in VC invested overall greening the economy and
$40 across multiple nations. really leveraging innovative
2,000 technologies to become a
$30 leader in areas like EV
1,500 manufacturing. Looking
forward to 2022, I think that
$20
1,000 focus will help drive a
significant increase in the
”
$10 space.
500
$47.7
$12.8
$13.3
$27.5
$12.2
$20.7
$28.5
$17.5
$14.9
$12.2
$19.0
$25.6
$24.2
$32.7
$50.3
$34.2
$33.3
$20.2
$18.5
$33.7
$37.0
$21.7
$20.1
$33.7
$40.4
$41.7
$41.6
$51.7
$46.2
$5.3
$5.5
$6.1
$0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021
Egidio Zarrella
Partner, Clients and
Source: Venture Pulse, Q4’21, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of December 31, 2021. Data provided by Innovation
KPMG China
# Q4VC
75
Metrics rebound, especial y at the late stage
“
Median deal size ($M) by series in Asia
2014–2021*
The number of Unicorns that
$120
India has seen in calendar
year 21 has been higher than
last 5 years put together. This
$100 $100.00
coupled with the fact that
public markets have
embraced Indian tech
$80 company IPOs is just an
indication of the fact that we
are at the cusp of a revolution
$60 in the Indian market. 2022 in
my view is going to be a
landmark year for Indian start
” ”
$40 up industry and will set new
$35.1 benchmarks.
$20
$17.1
$9.8
$1.2
$0 $0.8
2014 2015 2016 2017 2018 2019 2020 2021* Nitish Poddar
Partner and National Leader,
Seed Angel A B C D+ Private Equity
KPMG in India
# Q4VC
76
Valuations continue to recover to new highs

Median pre-money valuation ($M) by series in Asia
2017–2021*
$1,200
$1,000
$972.0
$800
$600
”
$400
$338.2
$200
$162.3
$48.3
$4.8
$0
$4.5
2017 2018 2019 2020 2021*
Seed Angel A B C D+
# Q4VC
77
Angel & seed rebound in volume if not value

Deal share by series in Asia Deal share by series in Asia
7,000 $140
6,000 $120
5,000 $100
4,000 $80
3,000 $60
2,000 $40
1,000 $20
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
78
Healthcare & biotech continue to resurge

Asia venture financings by sector Asia venture financings by sector
100% 100%
Transportation
90% 90%
Commercial Products
& Services
80% 80%
Consumer Goods &
Services
70% 70%
Software
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices &
0% Supplies 0%
2021*
2014
2015
2016
2017
2018
2019
2020
2021*
2014
2015
2016
2017
2018
2019
2020
Energy
# Q4VC
79
Corporates join in record tally of rounds

Corporate participation in venture deals in Asia
2014–Q4'21
$50 1,200
Corporates played a key role in supporting the rise of
venture investment, given the structures of the
$45 politico-economic scenes in major nations such as
1,000
India and China, throughout the entire 2010s. Since
$40 the dip in early 2020, they have played a key role in
2021’s resurgence, particularly in Q3 2021.
$35
800
$30
$25 600
…the continued 2021
recovery is increasingly the
$20
400
$15
result of the longer-term
$10
200
motivations of CVCs and
$42.9
$17.9
$13.1
$21.2
$17.3
$11.2
$19.7
$39.0
$22.3
$15.7
$10.2
$14.1
$21.6
$13.8
$11.0
$17.3
$23.9
$17.4
$19.0
$31.5
$27.7
$5
$2.7
$2.9
$2.7
$5.8
$6.9
$6.3
$8.8
$8.5
$5.6
$9.5
$9.4
$0 0
their corporate counterparts’
interests in fostering
2014 2015 2016 2017 2018 2019 2020 2021
longer-term economic
growth, especially in
partnership with
governments.
# Q4VC
80
Q4 2021 rebounds in exit value
“
Venture-backed exit activity in Asia
2014–Q4'21
While we expect to see continued
$180 200 After a record breaking first half in terms of exit
value, Q3 2021 saw a temporary slowdown in
market volatility in Hong Kong
$160 180 larger exits, only for the final quarter of the year (SAR, China) given the continued
to see a significant resurgence once clearer uncertainties around the
160 guidance from governing bodies was obtained for
$140
regulatory changes.
economic impact from the
$120
140 Omicron variant, we expect to
120 see VC activities to return in the
$100 China region in 2022 across TMT,
100
$80
consumer markets, green
80 technologies and biotech. We
$60
60
expect IPO activities to remain
$40
strong in this region in 2022
40
boosted by the return or
$157.9
$110.7
$20 secondary listing of US listed
$47.2
$11.6
$12.3
$12.0
$31.7
$46.3
$64.9
$11.3
$24.9
$25.1
$23.7
$21.9
$24.9
$50.0
$46.5
$28.9
$83.0
20
$1.2
$3.1
$4.7
$8.7
$3.6
$6.7
$4.4
$9.4
$7.6
$6.4
$6.0
$5.6
$8.0
$0 0
Chinese companies and Hong
Kong’s (SAR, China) new SPAC
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2014 2015 2016 2017 2018 2019 2020 2021 listing regime. So we should see
another strong year of IPO listings
”
of innovative companies.
Irene Chu
Partner, Head of New Economy and
Life Sciences, Hong Kong Region
KPMG China
# Q4VC
81
2021 nearly triples public listings’ exit value

Venture-backed exit activity (#) by type in Asia Venture-backed exit activity ($B) by type in Asia
2014–2021* 2014–2021*
700 $400
$350
600
$300
500
$250
400
$200
300
$150
200
$100
100 $50
0 $0
2014 2015 2016 2017 2018 2019 2020 2021* 2014 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
82
Fundraising cyclicality could be in play

Venture fundraising in Asia
2014–2021*
$140 700 Healthier fundraising totals in the second half of the 2010s could be contributing to a decline in
fundraising across the region in 2021, although it is also possible that currently evolving
regulatory guidelines for cross-border investments as well as domestic fundraising efforts
$120 600 could be protracting fund closures.
$100 500
The fundraising cycle subsided in what could be a
$80 400
cyclical pause, with $48.7 billion in VC
$60 300 committed putting 2021 in line with pre-2016 levels.
$40 200
$20 100
$116.4
$18.3
$45.9
$75.8
$72.4
$67.3
$72.7
$48.7
$0 0
2014 2015 2016 2017 2018 2019 2020 2021*

# Q4VC
83
Midsize fundraising volume grew somewhat

Venture fundraising (#) by size in Asia First-time vs. follow-on venture funds (#) in Asia
2014–2021* 2014–2021*
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2014 2015 2016 2017 2018 2019 2020 2021* 2015 2016 2017 2018 2019 2020 2021*
# Q4VC
84
India sees record financing volume
“
Venture financing in India
2014–Q4'21
Over the last two years, India
$18,000 600 has really stepped up in terms
of its VC ecosystem. There’s
$16,000
500 a lot going on here — and
$14,000 companies are really growing
$12,000 400 in any number of sectors. It’s
$10,000
a very favorable market right
300 now — the macro economic
$8,000
factors were good. The stock
$6,000 200 markets have been booming.
Investors have gained
$15,399.8
$10,361.4
$4,000
$1,778.7
$1,593.0
$2,393.2
$3,868.3
$1,415.0
$1,646.5
$1,429.2
$1,730.2
$2,177.5
$5,639.2
$1,980.6
$1,884.5
$1,759.5
$1,932.4
$2,402.5
$2,278.8
$3,038.1
$3,318.4
$6,180.3
$2,849.5
$1,867.4
$4,291.2
$3,841.6
$3,098.5
$5,614.0
100
$507.0
$912.9
$662.3
$841.1
$784.5
$2,000
confidence about potential
exits. All of these are driving
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 VCs and LPs to put loads of
2014 2015 2016 2017 2018 2019 2020 2021 money into India’s VC
ecosystem — and one well
positioned to continue as we
”
head into 2022.
Amarjeet Singh
Partner
KPMG in India
# Q4VC
85
Chinese VC invested remains consistent
“
Venture financing in China
2014–Q4'21
In China, healthcare is still
$50 2,000 a very active sector for VC
$45 1,800 investment, with biotech
companies in particular
$40 1,600
attracting a lot of attention
$35 1,400 and an increasing number
$30 1,200 of funding rounds. The
semiconductor space is
$25 1,000
also very hot. While VC
$20 800 investment in China
$15 600 historically has focused on
consumer-centered
$10 400
businesses, we are now
starting to see B2B
$10.1
$21.7
$17.5
$26.5
$13.8
$12.9
$13.1
$16.2
$20.5
$24.2
$45.4
$29.5
$24.3
$14.7
$11.7
$26.1
$17.7
$11.7
$14.4
$20.9
$32.9
$32.8
$23.4
$25.2
$25.0
$5 200
$3.9
$3.8
$3.8
$5.5
$9.2
$9.6
$9.3
companies getting more
”
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 attention.
2014 2015 2016 2017 2018 2019 2020 2021
Allen Lu
Partner and Head of TMT Audit
KPMG China
# Q4VC
86
Australia notches third $1 bil ion+ quarter

Venture financing in Australia
2014–Q4'21
$2,500 160
140
$2,000
120
100
$1,500
80
$1,000
60
40
$500
$1,255.7
$2,113.8
$1,107.9
20
$109.3
$126.1
$121.1
$209.0
$132.3
$255.3
$164.2
$127.7
$177.5
$264.7
$147.4
$182.6
$517.6
$274.6
$448.0
$460.3
$394.1
$347.1
$449.2
$573.4
$524.2
$549.3
$326.9
$501.0
$845.5
$92.0
$73.9
$80.0
$92.3
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
# Q4VC
87
Japan closes year at record $4.6 bil ion invested
“
Venture financing in Japan
2014–Q4'21
The Japanese VC market
$1,800 250 is evolving very rapidly —
and is poised to see
$1,600
substantial growth as we
200 move into 2022. We’re
$1,400
seeing more companies
$1,200
raising funds than ever
150
$1,000 before and more
involvement from foreign
$800
100 VC firms — not to mention
$600 larger exits to larger exits.
There is an incredible
$400
50 amount of opportunity here
$1,652.4
$1,151.6
$1,318.3
$1,481.3
$141.8
$229.4
$249.2
$141.1
$198.0
$214.6
$157.1
$396.8
$318.2
$252.9
$275.8
$438.4
$291.4
$487.4
$523.3
$843.2
$373.9
$773.9
$753.0
$625.4
$979.8
$801.0
$779.5
$895.8
$864.6
$954.8
$960.7
$797.0
and no sign it will slow
”
$200
down any time soon.
$0 0
2014 2015 2016 2017 2018 2019 2020 2021
Hiroshi Abe
Executive Board Member,
Partner
KPMG AZSA LLC
# Q4VC
88
Diversity in sectors evident across top deals

Top 10 financings in Q4'21 in Asia-Pacific
10
9 1. J&T Express — $2.5B, Jakarta, Indonesia — E-commerce — Late-stage VC
8 4 2. Regor Therapeutics — $1.5B, Shanghai, China — Biotech — Early-stage VC

6 2
7 3 3. GTA Semiconductor — $1.25B, Shanghai, China — Semiconductors — Early-stage VC

5
4. Nanjing LingHang Technology — $1.2B, Nanjing, China — Automotive — Series A
5. Pupumall — $950M, Fuzhou, China — Retail — Late-stage VC

1
6. SVOLT — $939.4M, Changzhou, China — Energy storage/cleantech — Series B1
7. Dream Sports — $840M, Mumbai, India — Gaming — Late-stage VC
8. Ola — $639M, Bengaluru, India — Ridehailing — Series J
9. Hozon — $621.7M, Shanghai, China —Automotive — Series D1
10. Dreame Technology — $558M, Tianjin, China — Consumer durables — Series C

# Q4VC
89
Global | US | Americas | Europe | Asia
KPMG Private Enterprise Emerging Giants Network.

From seed to speed, we’re here throughout your journey
Contact us:
Netherlands
Denmark
Germany
Sweden Russia
Iceland Finland
Canada Norway
UK Latvia
Ireland Lithuania Conor Moore
Channel Islands Poland Co-Leader,
Czech Republic KPMG Private Enterprise
Luxembourg Slovakia
France Emerging Giants Network
Switzerland Ukraine China E: conormoore@kpmg.com
US Romania South Korea
Portugal
Bermuda Turkey Japan
Spain Bangladesh
Italy Greece Israel Taiwan
Mexico Austria Malta Cyprus (Jurisdiction)
Tunisia
India Hong Kong
Venezuela (SAR, China)
Cambodia Vietnam
South Africa
Singapore
Peru
Brazil
Chile Australia
Uruguay
New Zealand
# Q4VC
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About us
About KPMG Private Enterprise
You know KPMG, you might not know KPMG Private Enterprise. KPMG Private Enterprise advisers in KPMG firms around the world are
dedicated to working with you and your business, no matter where you are in your growth journey — whether you’re looking to reach new
heights, embrace technology, plan for an exit, or manage the transition of wealth or your business to the next generation. You gain access to
KPMG’s global resources through a single point of contact — a trusted adviser to your company. It is a local touch with a global reach.
The KPMG Private Enterprise Global Network for Emerging Giants has extensive knowledge and experience working with the startup
ecosystem. Whether you are looking to establish your operations, raise capital, expand abroad, or simply comply with regulatory
requirements — we can help. From seed to speed, we’re here throughout your journey.
Register for the KPMG Private Enterprise Global Tech Innovator 2022
At KPMG Private Enterprise we understand the impact that technology trailblazers like you are having on the world. Whether yours is a pure
technology company or you’re tech-enabled, tech-led or tech-driven, we want to hear from you.
We’re inviting you to compete with technology entrepreneurs across the globe. You’ll pitch your innovations and present your growth
ambitions to a panel of industry experts.
Wherever you are in your business lifecycle — from early-stage growth to getting ready to accelerate your expansion — our aim is to help
you achieve your ambition and take your business to the next level.
Click here to register your interest for our 2022 competition.
# Q4VC
91
About the report

Acknowledgements
We acknowledge the contribution of the following individuals who assisted in the development of this publication:
— Jonathan Lavender, Global Head, KPMG Private Enterprise, KPMG — Lindsay Hull, Director, Emerging Giants Global Network, KPMG Private
Enterprise, KPMG
— Conor Moore, Global Leader Emerging Giants, KPMG Private Enterprise,
KPMG, Partner, KPMG in the US — Melany Eli, Managing Director, Marketing and Communications, KPMG Private
Enterprise, KPMG
— Amarjeet Singh, Partner, KPMG in India
— Nicole Lowe, Head of Emerging Giants, KPMG in the UK
— Amy Burnett, Head of KPMG Private Enterprise Access, KPMG in the UK
— Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India
— Anna Scally, Partner, Head of Technology and Media and Fintech Lead, KPMG
in Ireland — Rodrigo Guedes, Managing Director, KPMG in Brazil
— Dr. Ashkan Kalantary, Partner, Deal Advisory Venture Services, KPMG in — Sunil Mistry, Partner, KPMG Private Enterprise, Technology, Media and
Germany Telecommunications, KPMG in Canada
— Diogo Garcia Correia, Venture Capital & Emerging Giants Business — Tim Dümichen, Partner, KPMG in Germany
Development, KPMG in Brazil
— Warren Middleton, Lead Partner for Emerging Giants CoE in the UK, KPMG in
— Egidio Zarrella, Partner, Clients and Innovation, KPMG China the UK
— Hiroshi Abe, Executive Board Member, Partner, KPMG AZSA LLC
— Irene Chu, Head of New Economy and Life Sciences, Hong Kong (SAR), KPMG
China
— Jules Walker, Senior Director, Business Development, KPMG in the US
— Jussi Paski, Head of Startup Services, KPMG in Finland
— Lauren Taylor, Fintech Business Development, KPMG in the UK
# Q4VC
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About the report

Methodology
KPMG uses PitchBook as the provider of venture data for the Venture Pulse report
Please note that the MESA and Africa regions are NOT broken out in this report. Accordingly, if you add up the Americas, ― Angel/seed: PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the company
Asia-Pacific and Europe regional totals, they will not match the global total, as the global total considers those other regions. to date and we cannot determine if any PE or VC firms are participating. In addition, if there is a press release that
Those specific regions were not highlighted in this report due to a paucity of datasets and verifiable trends. states the round is an angel round, it is classified as such. Finally, if a news story or press release only mentions
individuals making investments in a financing, it is also classified as angel. As for seed, when the investors and/or
In addition, particularly within the European region, the Venture Pulse does not contain any transactions that are tracked as press release state that a round is a seed financing, or it is for less than $500,000 and is the first round as reported
private equity growth by PitchBook. As such rounds are often conflated with late-stage venture capital in media coverage, by a government filing, it is classified as such. If angels are the only investors, then a round is only marked as seed
there can be confusion regarding specific rounds of financing. The key difference is that PitchBook defines a PE growth round if it is explicitly stated.
as a financial investment occurring when a PE investor acquires a minority stake in a privately held corporation. Thus, if the
― Early-stage: Rounds are generally classified as Series A or B (which we typically aggregate together as early-
investor is classified as PE by PitchBook, and it is the sole participant in the recipient company’s financing, then such a round
will usually be classified as PE growth, and not included in the Venture Pulse datasets. stage) either by the series of stock issued in the financing or, if that information is unavailable, by a series of factors
including: the age of the company, prior financing history, company status, participating investors, and more.
Also, if a company is tagged with any PitchBook vertical, excepting manufacturing and infrastructure, it is kept. Otherwise, the
― Late-stage: Rounds are generally classified as Series C or D or later (which we typically aggregate together as
following industries are excluded from growth equity financing calculations: buildings and property, thrifts and mortgage
late-stage) either by the series of stock issued in the financing or, if that information is unavailable, by a series of
finance, real estate investment trusts, and oil & gas equipment, utilities, exploration, production and refining. Lastly, the
factors including: the age of the company, prior financing history, company status, participating investors, and more.
company in question must not have had an M&A event, buyout, or IPO completed prior to the round in question.
― Corporate: Corporate rounds of funding for currently venture-backed startups that meet the criteria for other
Fundraising PitchBook venture financings are included in the Venture Pulse as of March 2018.
PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity of startup ― Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both firms
companies. In addition to funds raised by traditional venture capital firms, PitchBook also includes funds raised by any investing via established CVC arms or corporations making equity investments off balance sheets or whatever other
institution with the primary intent stated above. Funds identifying as growth-stage vehicles are classified as PE funds and are non-CVC method is employed.
not included in this report. A fund’s location is determined by the country in which the fund is domiciled; if that information is not
explicitly known, the HQ country of the fund’s general partner is used. Only funds based in the United States that have held Exits
their final close are included in the fundraising numbers. The entirety of a fund’s committed capital is attributed to the year of PitchBook includes the first full liquidity event (i.e., M&A, buyout, IPO) for holders of equity securities of venture-backed
the final close of the fund. Interim close amounts are not recorded in the year of the interim close. Mega-funds are classified as companies. This does not include direct secondary sales, further share sales following an IPO, or bankruptcies. M&A
those of $500 million or more in size for the following fund categories: venture and secondaries. value is based on reported or disclosed figures, with no estimation used to assess the value of transactions for which
the actual deal size is unknown. Unless otherwise noted, IPO sizes are based on the pre-money valuation of the
Deals company at the time of the transaction.
PitchBook includes minority equity investments, as well as investments combined of both equity and debt, into startup
In the edition of the KPMG Venture Pulse covering Q1 2019 and all ensuing, PitchBook’s methodology regarding
companies from an outside source. Investment does not necessarily have to be taken from an institutional investor. This can
aggregate exit values changed. Instead of utilizing the size of an IPO as the exit value, instead the prevaluation of an
include investment from individual angel investors, angel groups, seed funds, venture capital firms, corporate venture firms,
IPO, based upon ordinary shares outstanding, was utilized. This has led to a significant change in aggregate exit values
and corporate investors, as well as from nontraditional investors such as hedge funds, mutual funds or private equity funds.
in all subsequent editions yet is more reflective of how the industry views the true size of an exit via public markets. In
Investments received as part of an accelerator program are not included, however, if the accelerator continues to invest in
the edition of the KPMG Venture Pulse covering Q1 2021 and all ensuing, the IPO exit type was updated to include all
follow-on rounds, those further financings are included.
types of public listings, including special purpose acquisition companies (SPACs) and other reverse mergers.
# Q4VC
93
To connect with a KPMG Private Enterprise adviser in your region email enterprise@kpmg.com
home.kpmg/venturepulse [website]
@kpmg [Twitter]
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the particular situation.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International
Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.

Venture Pulse q4 2021

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Venture Pulse q4 2021

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Venture Pulse

January 19, 2022

Globally, in Q4’21 VC-backed companies raised

2021 concludes with record figures

2021 maintains historic optimism

Angel & seed Early VC Later VC Up Flat Down

All series notch new highs

The late stage more than doubles YoY

Even Series A sees a record sum of VC invested

Software predominates once again

100% Transportation 100%

90% Commercial 90%

First-time financings turn trends around

$100 3,000 $60 14,000

The rich get richer, and liquidity proves out

$40 160 $450 1,000

Public listings soar past $1 tril ion

Acquisition Buyout Public Listing Acquisition Buyout Public Listing

$200 bil ion+ achieved… again

LPs keep plying existing managers

China & the US account for most top deals

1. J&T Express — $2.5B, Jakarta, Indonesia — E-commerce — Late-stage VC

2. Commonwealth Fusion Systems — $1.8B, Cambridge, US — Cleantech — Series B

3. Gopuff — $1.5B, Philadelphia, US — Retail — Late-stage VC

8. Nanjing LingHang Technology — $1.2B, Nanjing, China — Automotive — Series A

9. Thrasio — $1B, Walpole, US — E-commerce — Series D

10. Pupumall — $950M, Fuzhou, China — Retail — Late-stage VC

In Q4’21 US VC-backed companies raised

$88.2B across 3,536 deals

US sees fourth straight quarter of record VC investment

US sees fourth straight quarter of record VC investment, cont’d.

Q4 2021 sees an all-time high in VC invested

Investors remained ebullient in 2021

Every series sees a new high

Note: Figures rounded in some cases for legibility.

2021 finally sees a $1B figure at the late stage

Note: Figures rounded in some cases for legibility.

Most series see record sums invested

After banner year, biotech retreats somewhat

First-time funding finally resurges

$40 900 $30 5,000

Historic exit trends reinforce investment

Public debuts set all-time highs

Acquisition Buyout Public Listing Acquisition Buyout Public Listing

LP appetite remains strong

Capital raised ($B) Fund count

A healthy proportion of midsized funds closed

With competition rising, first-time funds dwindle

In Q4’21 VC-backed companies in the Americas raised

$95.2B across 3,946 deals

Over $95 bil ion invested in Q4 alone

Round sizes double or more YoY

Angel & seed Early VC Later VC Up Flat Down

The late stage grows more inflated

Unicorns in South America prop up valuations

Angel & seed volume rebound

Software bounces back

100% Transportation 100%

90% Commercial Products 90%

Q4 caps a historic year for Canadian startups

Deal value ($M) Deal count

2021 closes as best year on record for Mexico

$400 15 2021 saw multiple outlier rounds, signaling the

2021’s second half sees staggering $5.8B