Two weeks ago, we highlighted Pitchbook data showing quarterly VC funding for female founders had dropped to three-year low in Q3 2020. Despite this contraction in funding for women-led startups, Q3 funding to US-based, VC-backed companies is the second strongest quarter ever.
VC investments to US-based companies hit a 7-quarter high at $36.5B, up 22% year-over-year and 30% from Q2’20. Other trends in the data include:
–Deal activity remained largely the same from Q2 to Q3, although Q3 deals are still down 11% year-over-year amid the COVID-19 pandemic.
–Mega-rounds accounted for 54% of total funding, with 88 companies raising $100M or more in the US. Seed deals also rose for the second consecutive quarter.
–In terms of industry trends, four emerging areas attracted the majority of deal activity – Digital Health, Fintech, Artificial Intelligence, and Medical Devices.
–Colorado accounted for $250M of investment across 41 deals in Q3.
Interested in helping strengthen Colorado’s startup ecosystem in Q4? There are plenty of opportunities to get involved with RVC. Learn about industry trends in pandemic technology at the RVC Community Webinar: Industry Spotlight – Pandemic Tech on November 6. Use your expertise to mentor a company at the upcoming Pandemic Tech HyperAccelerator, happening November 9-14. Or, join us at Reversing the Trend: Funding Female Founders on November 19 to catalyze investment in women founders. We hope to see you at an upcoming event soon!