Investors doled out about $621 billion to startup companies around the world looking to get themselves on solid financial ground, more than doubling the record set the previous year for venture capital investment, according to a Bloomberg report Wednesday (Jan. 12).
U.S. startups comprised about $311 billion in startup investment in 2021, led by Silicon Valley and New York, which topped the list in terms of money raised and most deals completed, according to CB Insights data.
Philadelphia (63%), Silicon Valley, New York, Austin, Texas (all three at 57%) and Dallas (55%) led the U.S. in early-stage funding.
Bilal Zuberi, partner at Lux Capital, which backs early- through growth-stage companies, told Bloomberg that it’s “not surprising” that founders are launching startups in more varied locations. Remote work makes companies’ headquarters less important than ever, Zuberi said, and video calls have made the investment process move more quickly.
“If you’re linked to New York, Austin or Silicon Valley, then it doesn’t matter if you’re based in Montana,” Zuberi said in the Bloomberg report. “What matters most is what ecosystem a founder can tap into for executives and employees.”
Miami startups raised $4.6 billion in 2021, more than double 2020’s total and a ninefold increase from 2015. Early-stage startups capturing deals in Miami hit 50% for the first time in 2021.
For the first time since CB Insights started tracking the data, there were more funding rounds in Asia than any other region, with 12,485 deals recorded.
Related: Global HealthTech Sector Continues to Grab Investor Interest In 2022
Meanwhile, investments in global health technology startups have jumped 280% since 2016 and shown similar promise since the start of the COVID-19 pandemic to $51.3 billion in 2021, according to recent data from London & Partners and Dealroom.co.
Based on early signs in 2022, the momentum has not slowed down when it comes to healthcare-related investments.
MeMed, an Israeli firm that develops diagnostic solutions to monitor the body’s immune system, announced Monday (Jan. 10) that it had raised $93 million to accelerate the commercialization of its host immune-response product portfolio. That brings its total investment capital to $200 million.
One of Africa’s leading digital health firms, mPharma, secured $35 million last week to expand healthcare access across the African region, bringing its total to more than $50 million.
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