VENTURE

CAPITAL
WORLDWIDE
OVERVIEW
 Value of venture capital financing raised by selected private companies worldwide in
Q4 2021 (in billion U.S. dollars)
Leading startups globally Q4 2021, by VC funding

Description: Five American startups were the largest beneficiaries of venture capital financing worldwide in the last quarter of 2021. One of them, Commonwealth Fusion Systems, is an energy company which seeks to build compact fusion power plants. In the fourth
quarter 2020, the Cambridge-based company received growth investment amounting to 1.8 billion U.S. dollars. Read more
Note(s): Worldwide; Q4 2021; figures have been rounded
Source(s): KPMG; PitchBook
 Distribution of investments into venture capital backed companies from 2013 to the
3rd quarter 2021, by continent
Distribution of investments into VC companies 2013-2021, by continent

Description: Venture capital (VC) backed companies in the Americas received in the third quarter of 2021 over 50 percent of all VC investments made on a global scale. Additionally, the Asian continent had a share of almost 30 percent of all VC investments, while
Europe had less than 20 percent of total VC investments during the same period. Read more
Note(s): Worldwide; 2013 to 2019; Q3 2021; * Calculated by Statista based of figures for the 3rd quarter of 2021. Read more
Source(s): KPMG; PitchBook; Statista
 SECTOR-WISE VENTURE CAPITAL BREAK-UP

1. According to a report from Martin Prosperity,

venture capital investment is heavily concentrated across
several industrial sectors.

2. America's top five industries account for 76.3 percent

of all VC investment across the nation, about $25 billion in
total.

3. Software receives the largest slice of the VC pie by

far, accounting for 36.2 percent (almost $12 billion) while
biotechnology comes second with 17.3 percent ($5.7
billion).

4. Media and entertainment rounds off the top three with

9.5 percent ($3.2 billion).
Venture Capital in the US - Upcoming Trends
1. Fintech, healthtech, and EV technologies to remain hot areas of VC investment in Q2’22.

2. Proptech is also well positioned for growth given increasing real estate prices and the rapid rise in investors
interested in secondary real estate markets.

3. The US federal government’s recently passed infrastructure plan is also expected to pour money into a number of
key sectors, including traditional infrastructure, internet connectivity, and electric vehicle infrastructure. As the plan
is put into action, it will likely create new opportunities for startups – which could, in turn, catalyze VC
investment.
Venture Capital in Europe - Upcoming Trends

1. Investments in the European region have been pretty distributed among different sectors
- For example, Germany attracted major fundings in the Healthcare department while in UK it was more focussed
towards the fintech sector. Nordic region had investments in multifarious sectors.

1. Deal activity across Europe could slow somewhat as a result of the Russia-Ukraine war, combined with rising
inflation ad interest rates. While there is a significant amount of dry powder in the market.

2. VC investors may hold-back from making investments over the near-term given the level of uncertainty. Fintech,
healthtech, and alternative energy will likely remain hot areas of investment across the region during Q2’22.
KEY Highlights
➢ Investment remains strong in Europe - with over $31.7 billion invested on 2219
deals

➢ UK and France continue to see new heights

➢ Early-stage deals decline in value and volume

➢ First time venture financings slows to $1.5 billion on just over 500 deals
FUTURE PROSPECTS: Driving Value in Fintech

Financial services raised more venture

investment in 2021—the most year-over-
year growth among leading industries—
than any other sector, followed by health
care, e-commerce and transportation.
PROMISING SECTORS OF GROWTH
(GLOBAL)
 CYBERSECURITY
With the growth of digital infrastructure and more people online,
cyberattacks have gotten quite frequent, and the need for cyber
security is more than ever. The division of the cybersecurity industry can
be shown as follows:

Critical Infrastructure Security

Critical infrastructure security focuses on protecting cyber-physical systems,
networks, and assets that modern societies rely on.

Cloud Security
Cloud security is a software-based security tool that protects and
monitors the data in your cloud resources.

Application Security
Application security protects software application code and data against
cyber threats and breaches.

Internet of Things (IoT) Security

IoT security is the act of securing Internet devices and the networks
they’re connected to from cyber threats and breaches.

Network Security
Network security guards against the unauthorized intrusion of your
internal networks due to malicious intent.
 CLOUD COMPUTING
Cloud computing is a general term for anything that involves delivering
hosted services over the Internet. Significant innovations in
virtualization and distributed computing, as well as improved access to
high-speed Internet and a weak economy, have accelerated interest in
cloud computing These services are broadly divided into three
categories:

1. Infrastructure-as-a-Service (IaaS)
Infrastructure-as-a-Service like Amazon Web Services provides virtual
server instances with unique IP addresses and blocks of storage on
demand. Customers use the provider's application program interface
(API) to start, stop, access and configure their virtual servers and
storage.
2. Platform-as-a-Service (PaaS)
Platform-as-a-service in the cloud is defined as a set of software and
product development tools hosted on the provider's infrastructure.
Developers create applications on the provider's platform over the
Internet.
3. Software-as-a-Service (SaaS)
In the software-as-a-service cloud model, the vendor supplies the
hardware infrastructure, the software product and interacts with the
user through a front-end portal.
 DATA ANALYTICS
Data analytics (DA) is the process of examining data sets in order to find
trends and draw conclusions about the information they contain.
Increasingly, data analytics is done with the aid of specialized systems
and software.

Data acquisition (DAQ)

Refers to the process of measuring physical or electrical changes, such as
voltage, current, temperature, pressure or sound fluctuations, within a computer
system.

Data Security
Monitoring and detection of malicious activities within corporate networks are
very essential because of the rising global security threats.

Insights & Analysis

The values learnt from the implementation of analytics are referred to as
insights. They help you identify opportunities to improve your business and
tackle market fluctuations. Analytics helps gain values from your data by
discovering unique patterns and trends.
Data Storage
Retaining data using computers and other devices, it is done using specialized
technology, which in turn makes it accessible for future use.

Data visualization
Data visualization refers to the graphical representation of information gained
through data analysis.
 GREEN TECHNOLOGY AND
SUSTAINABILITY MARKET
The global green technology and sustainability market size was
valued at $10.32 billion in 2020, and is projected to reach $74.64
billion by 2030, growing at a CAGR of 21.9% from 2021 to 2030.

By technology, the green technology and sustainability market was

led by the Internet of Thing (IoT) segment in 2020, and is projected
to maintain its dominance during the forecast period. The primary
factor that drives the growth of IoT technology segment is advent of
green networks in IoT connectivity, which has contributed to curb
pollution & emission, reduce exploitation of environmental
conservation & surveillance, and minimize operational costs &
power consumption. However, the artificial intelligence & analytics
segment is expected to grow at the highest rate during the forecast
period, owing to surge in adoption of artificial intelligence and
analytics among various industries across the globe.
 BIOTECHNOLOGY
The global biotechnology market size was estimated at USD 1,023.92
billion in 2021 and is expected to grow at a compound annual growth rate
(CAGR) of 13.9% from 2022 to 2030. The market is driven by strong
government support through initiatives aimed at modernization of regulatory
framework, improvements in approval processes & reimbursement policies,
as well as standardization of clinical studies. The market is segmented based
on technology, application, and region.

By Technology By Application By Region

•Fermentation •BioPharmacy •North America
•Tissue Engineering •BioServices (U.S., Canada)
and Regeneration •BioAgriculture •Europe (Germany,
•PCR Technology •BioIndustrial UK, France, Spain,
•Nanobiotechnology •Bioinformatics Austria, Italy,
•Chromatography Netherlands)
•DNA Sequencing •Asia Pacific
•Cell-Based Assays (China, India,
•Others Japan, South Korea
Thailand,
Indonesia,
Malaysia)
•Latin America
(Argentina, Mexico,
Brazil)
•Middle East &
Africa (Saudi
Arabia, UAE, Israel,
South Africa)
UPCOMING TECHNOLOGIES
 Technologies in Edtech
Classroom-based Immersive Education Content
1. Teachers spend over 7 hours searching for learning resources and another 5 hours creating
something on their own! It is not due to lack of information. On the contrary, it takes more time
because there is too much information and general purpose search engines such as Google and
Bing fail to understand the intent behind an educator’s search.

2. Vertical search engines that have a razor sharp focus on their users need help solve this problem.
For example, Lumos EdSearch is designed to help educators find standards aligned learning resources. It is a directory of learning
resources as well as educational organizations and events. Teachers can easily discover thousands of grade and standards
appropriate questions, videos, mobile applications, worksheets, and lessons. It also provides information about their school, libraries
and educational conferences.

3. One of the distinguishing features of vertical search engines such as EdSearch is that they can
help users consume the information in a meaningful manner. i.e. They go beyond the discovery.
Growth potential based on Geography
 Alternate Data
1. Alternative data, also known as external data, is information collected from non-
traditional, external data sources.

2. It could be as minuscule as app downloads, keeping track of hiring and firing,

interaction with customers (tickets raised), web traffic, credit card transactions, social
media sentiment, funding, and so on.

3. Given the volatilities in the market and the high-risk funding game, the majority of VCs
are now turning to these new types of data sets to get an informational advantage
over the rest of the market.
 ● Personal mobility account for a major share of the market during the forecast period
The Autonomous / Self-driving cars Market for the commercial mobility segment is projected to grow fastest during the
forecast period. Ride-sharing, robo-taxi, goods transportation, and other commercial activities are considered in the
commercial mobility segment. The introduction of robo-taxis is expected to present new challenges regarding car
ownership or mobility as a service model. Car companies producing generic, as well as robo-taxis, are adopting
advanced production technologies.

● The Asia Pacific region is projected to be the fastest-growing Autonomous / Self-driving cars Market, by
2030
Asia Pacific is expected to account for the largest market share by 2030, followed by Europe and North America.
Increasing demand for a safe, efficient, and convenient driving experience; rising disposable income in emerging
economies; and stringent safety regulations across the globe are factors driving the Autonomous / Self-driving cars
Market. The market in Asia Pacific is expected to grow at the highest rate during the forecast period owing to increased
partnerships adopted by Autonomous / Self-driving cars technology providers in this region. For example, Baidu is a
major service provider of autonomous / self-driving technology in China.
 Major Players and Investors

MAJOR PLAYERS MAJOR INVESTORS

❖ Waymo
❖ Total funding raised: $5.7B
❖ Plus
❖ Total funding raised: $842M
❖ Autobon
❖ Total funding raised: $1.5M
❖ Trucks Venture Capital (8)
❖ Motus Ventures (6)
❖ Sinovation Ventures (5)
❖ Qualcomm Ventures (5)
❖ Maniv Mobility (5)
❖ Intel Capital (5)
❖ Andreessen Horowitz (5)
❖ Shunwei Capital (4)
❖ Samsung Venture Investment (4)
 Climate Software Startups Are Suddenly A Hot Investment

Another factor contributing to escalating fundraising is the lamentable fact that news on the climate front
continues to get bleaker. From droughts and heat waves in the American Southwest to
record arctic temperatures threatening to accelerate glacial melting, climate change is prompting a
stepped-up sense of urgency among investors who follow the space most closely.

One standout trait about the latest crop of climate-tracking startups is that they’re a SaaS-heavy cohort,
with a lot of tech credentials among founding teams and investors.
Why is it important
Climate tech scaling for impact: Trends from this year’s analysis

Investment in climate tech is continuing to show strong growth as an emerging asset class, with a
total of US$87.5bn invested over H2 2020 and H1 2021 (second half of 2020 and first half of 2021), with
H1 2021 delivering record investment levels in excess of US$60bn. This represents a 210% increase
from the US$28.4bn invested in the twelve months prior. Climate tech now accounts for 14 cents of every
venture capital dollar.
 Major companies and investors in this space

● ClimateView, a Stockholm-based startup that closed on a $10 million Series A in September, offers
tools for cities to manage their planning as they transition to low- or zero-carbon economies. It’s an
enormous addressable market, as the company estimates cities make up 70 percent of the world’s
global emissions.
● Persefoni, an Arizona-based provider of software for conducting carbon accounting and preparing
sustainability disclosures, has raised just over $13 million. Such tools are in demand due to
environmental conscientiousness as well as economic considerations, as more institutional
investors add sustainability requirements for companies they back.
● SINAI Technologies, a San Francisco SaaS startup that works with enterprises to measure and
reduce their carbon footprints, closed on $10 million in an Obvious Ventures-led round this summer.