The Consulting firm KPMG has examined the global VC market and comes to the same conclusion as the Colleagues from EY: Never before has so much venture capital flowed into startups as last year. A significant portion of VC investments went to "unicorns," companies with a market valuation of over $1 billion. Ashkan Kalantary, Head of Venture Services at KPMG, says:
"Many unicorns may have raised large sums for perhaps the last time before they prepare for their exit. However, new unicorns are also emerging at a considerable pace, leading to a remarkable concentration of VC investments in the existing major players. For example, the number of new unicorns exploded in the last quarter of 2021, reaching 126 worldwide. Interestingly, a number of them come from less mature VC markets such as Vietnam, Brazil, Mexico, Indonesia, and the Philippines. This demonstrates the increasing diversity of the global VC market."
Further high venture capital investments expected
KPMG estimates that venture capital raised by European companies last year was $122.6 billion. Of this, $19.6 billion flowed into Germany. European VC investments thus increased by 128 percent compared to the previous year, and German investments by as much as 158 percent. Ashkan Kalantary says:
"With the emergence of Omikron-Variante and the increased return to home working, the continued pressure to improve digital offerings and hybrid work environments, as well as HR and workforce technologies, is likely to remain firmly on investors' radar across industries. A strong investment environment and the continued drive toward digitalization should help keep VC investment strong in the first quarter of 2022."
