Post by account_disabled on Mar 4, 2024 5:19:41 GMT -5
By almost any measure, 2021 has been a banner year for U.S. venture capital investment and venture capital-backed exit activity. Yet for all the headlines about record-breaking large public offerings or venture capital returns, there's been little discussion of what a year of hyperscale means for today's venture-backed startups, for which IPOs are still far off. . Notably, unlike most years, 2021’s venture-backed alumni are made up of companies that have been building technology for the past decade. In such a prosperous year, it's an often overlooked feature of the ecosystem: Building transformative technology takes time. This process continues today, with emerging classes setting new standards for the future. To capture long-term trends, Scale maintains the Large Exit Database (or "GED") to analyze every venture-backed exit that has occurred over the past two decades. Last year, after completing our 2020 analysis, we wrote about the GED for the first time. Here's a recap of our 2021 survey results. Looking at the 2021 Report Card from top to bottom, 2021 set records in the following categories: Total Tech Exits > $100M Total Enterprise Software Exits > $100M Total Technology Exits > $1B Total Technology Exports > $10B All in all, There were 374 U.S. VC-backed exits exceeding $100 million in 2021, equivalent to $778B in deal value.
Technology exits accounted for the largest share of exits, both in terms of number of deals (60%) and total value to date (84%). The Great Exit Database - Scale Venture Partners - Table 1 The table below provides an in-depth Paraguay Mobile Number List look at 224 exits in the tech sector. By number of deals, the majority (119 or 53%) occurred in the enterprise software space, which is Scale's primary focus area. Great Exits Database - Scale Venture Partners - Table 2 One of the most compelling data points from this year’s graduating class is what we call “great” ($1B+) and “super-great” ($10B+) exits at Scale obvious bias. For example, of 119 enterprise software exits > $100M, 47 (or 39%) exceeded $1B+ and 7 (or nearly 6%) exceeded $10B. What's clear is that many of the top exits in 2021 were huge. Record Number of $1B+ Exits The tilt toward $1B+ exits isn’t just isolated to enterprise software exits, it’s happening systematically across the tech industry. These large $1B+ deals represent $603B of the $650B (or 93%) of total tech exits. Just over half (51%) are in the enterprise sector. There were fewer consumer transactions above $1 billion (27 total, or 29%), but these results tended to be more skewed in terms of total transaction value.
The Great Exit Database - Scale Venture Partners - Table 3 Ten Years in Review: Looking ahead to 2021 While 2021 is by all accounts a banner year for VC-backed exits, we have always believed that any year will It is important to place exit activities in their wider context. To do this, we conducted a ten-year review of all venture-backed exit activity. Our findings are shown in the table below, which compares all exits above $100 million by deal number and deal value. Great Exit Database - Scale Venture Partners - Table 4 The story here is a very consistent one. While enterprise software exits pulled back slightly relative to the ten-year trend in 2021, this segment still contributed the strongest to tech exits over the past decade (both in terms of deal number and total value). The percentage of consumer-driven value in 2021 has barely changed compared to the segment's contribution over the past decade. Key takeaways for the next few years As we review this year's analysis, we balance both short-term and long-term views. The last decade has been the strongest wave of exits the venture capital ecosystem has ever seen, and 2021 is an especially prosperous year. We believe this event may bring a message of hope to early-stage founders. There has been, and likely will continue to be, ongoing interest in breakthrough technologies that create significant value.
Technology exits accounted for the largest share of exits, both in terms of number of deals (60%) and total value to date (84%). The Great Exit Database - Scale Venture Partners - Table 1 The table below provides an in-depth Paraguay Mobile Number List look at 224 exits in the tech sector. By number of deals, the majority (119 or 53%) occurred in the enterprise software space, which is Scale's primary focus area. Great Exits Database - Scale Venture Partners - Table 2 One of the most compelling data points from this year’s graduating class is what we call “great” ($1B+) and “super-great” ($10B+) exits at Scale obvious bias. For example, of 119 enterprise software exits > $100M, 47 (or 39%) exceeded $1B+ and 7 (or nearly 6%) exceeded $10B. What's clear is that many of the top exits in 2021 were huge. Record Number of $1B+ Exits The tilt toward $1B+ exits isn’t just isolated to enterprise software exits, it’s happening systematically across the tech industry. These large $1B+ deals represent $603B of the $650B (or 93%) of total tech exits. Just over half (51%) are in the enterprise sector. There were fewer consumer transactions above $1 billion (27 total, or 29%), but these results tended to be more skewed in terms of total transaction value.
The Great Exit Database - Scale Venture Partners - Table 3 Ten Years in Review: Looking ahead to 2021 While 2021 is by all accounts a banner year for VC-backed exits, we have always believed that any year will It is important to place exit activities in their wider context. To do this, we conducted a ten-year review of all venture-backed exit activity. Our findings are shown in the table below, which compares all exits above $100 million by deal number and deal value. Great Exit Database - Scale Venture Partners - Table 4 The story here is a very consistent one. While enterprise software exits pulled back slightly relative to the ten-year trend in 2021, this segment still contributed the strongest to tech exits over the past decade (both in terms of deal number and total value). The percentage of consumer-driven value in 2021 has barely changed compared to the segment's contribution over the past decade. Key takeaways for the next few years As we review this year's analysis, we balance both short-term and long-term views. The last decade has been the strongest wave of exits the venture capital ecosystem has ever seen, and 2021 is an especially prosperous year. We believe this event may bring a message of hope to early-stage founders. There has been, and likely will continue to be, ongoing interest in breakthrough technologies that create significant value.