A report from the National Venture Capital Association and PitchBook, a financial data company headquartered in Seattle, explains a rise in late-stage investment and deals is on track to set records this year.
The report, released this week, states venture capital investment is continuing to increase in the US and specifically, the Pacific Northwest.
One of those who contributed to the report, senior analyst at PitchBook, Kyle Stanford, said there was more capital being deployed as investors are increasingly attracted to tech startups.
Startup investments are growing markedly in the US. Startups raised $150 billion in the first half of 2021, which exceeds the $164 billion raised in all of 2020 and the $142 billion raised in 2019.
Washington state has seen startup investments of more than $3.4 billion in the first half of 2021, which is nearly 70% of the $5 billion total investment seen in 2020 and $4.1 billion in 2019.
According to PitchBook, venture capital is on track to invest a record amount of money this year.
A few Washington based companies are leading the way. Umoja Biopharma, a startup studying new immunotherapies for cancer, raised over $200 million this year. Highspot, a software platform to help customers manage sales, also raised a $200 million.
Cap Hill Brands, a company purchasing e-commerce businesses, received $150 million in January, and the total raised in Washington State this year may hit $100 billion.
Soma Somasegar, a managing director at Seattle-based Madrona Venture Group, thinks startups can stay private much longer.
He said, “ (companies) have the flexibility to say ‘I’ll go public when I want to go public,’ as opposed to, ‘I need to go public because that’s the only way I can raise lots of money.’”
Michael Schutzler, CEO of the Washington Technology Industry Association, also explained demand from venture capitalists may keep the cash investment rolling into 2022.
Changes in the work environment amid the COVID19 pandemic may also make investors more interested in tech startups as technology is increasingly used by people in their daily lives to work and live in isolation.
