The global startup funding surged 157 percent between the second quarter (Q2) of 2020 and Q2 2021 from $60.7 billion to a record $156.2 billion, according to Finbold, a leading provider of the latest finance news.
As per the data acquired by Finbold, during the first half of this year, the funding stood at $292.4 billion. In the first three months of 2021, the funding was at $136.2 billion, a growth of 35.6 percent from last year’s fourth-quarter figure of $100.4 billion.
Notably, the funding surpassed the $100 billion mark for the first time in Q4 2020. Over the last five years, the lowest funding for startups was recorded in 2016 Q2 at $37 billion.
The significant funding in recent quarters of the global startup indicates that the sector has put aside the impact of the coronavirus pandemic and the sector has recovered from the health crisis.
Currently, startups adapting to the changing human behavior are benefitted the most. The report highlights some of the conditions around the funding activity amid the economic turmoil.
“Although the pandemic initially dampened the funding activity, businesses quickly adapted to changing consumer behavior, sparking a massive comeback in funding with robust activity in sectors like healthcare and technology,” the report said.
Many entrepreneurs are focused on the opportunities to develop technologies and build companies that address the needs of a reopening economy. Therefore most venture capitals have shown intentions to fund such projects.
The funding has also played a key role in driving the valuation of most startups. For instance, in Q2 2021, the global number of unicorns stood at a record 136. Moving forward, several sectors will benefit from the funding, especially for those that have adapted to the changing consumer behavior.
Furthermore, the cryptocurrency sector is also likely to witness an influx of investors, considering that several venture capital firms have raised significant amounts specifically targeting the industry.
Related: Abu Dhabi-based tech startup Majarra attracts US investment