2021 NVCA Yearbook

The annual NVCA Yearbook documents trends and analysis of venture capital activity in the United States from the past year and capturing historical data and information about venture’s role in fueling entrepreneurship in America. It provides statistics on the size and impact of the U.S. venture industry, investments into startups, capital raised and managed by venture capital firms, and exit activity either through an initial public offering (IPO) or merger and acquisition (M&A).

Key Takeaways: 

  • Global VC Investment – While global venture investment has increased, the share going to U.S. startups has declined, from 84% in 2004 to 51% in 2020.
  • 2020 U.S. IPOS – 103 venture-backed companies went public in 2020, accounting for 22% of all U.S. IPOs last year. These 103 companies represented $222b in value at IPO. VC-backed companies comprised 42% of all U.S. IPOs from 1974 to 2014.
  • Assets Under Management – Venture capital compared with other asset classes: $74.5b raised via VC funds in 2020 to deploy to promising startups
  • Median U.S. VC Fund Size – The median size of VC funds in the traditional venture hubs of California, Massachusetts, and New York is $100M. Outside those states, the median is $24.6M.

Report: Why New Black Venture Capital Will Generate Outsized Returns and Help Close the Racial Wealth Gap

Why New Black Venture Capital Will Generate Outsized Returns and Help Close the Racial Wealth Gap” – a new report by Culture Shift Labs.

 

About Culture Shift Labs:
Culture Shift Labs (CSL) is a diversity and innovation consultancy that provides services under three pillars: Advising, Strategy, and Activation. Since 2006, we have been a recognized leader in integrating social and financial returns in ways that improve businesses and society. Our Knowledge + Network Formula powers those outcomes in tangible ways

 

2020 VC Human Capital Survey

What does the venture capital (VC) industry workforce look like in terms of demographics? What is the current state of VC diversity, equity, and inclusion (DEI)? The VC Human Capital Survey, powered by Deloitte, National Venture Capital Association, and Venture Forward, answers these and other questions for VC firms seeking to expand the diversity of both their teams and portfolios.

The third edition of our VC Human Capital Survey assesses the state of the US VC industry workforce, with a special focus on DEI. Results from this edition were benchmarked against findings from the first and second editions, which were originally conducted in 2016 and 2018. Conducted in 2020, this third edition requested firm demographic information (e.g., investment stage focus) and demographic information for each employee (e.g., gender and race). Additionally, firms were asked to provide information regarding their talent management practices and DEI programs.

While there have been other industry assessments of VC diversity, this survey provides a more holistic perspective. We gathered data from VC firms of all types and sizes, examined DEI for a variety of groups across all types of positions, and assessed firm talent management strategies. (Learn more.)

Report: Guidance and Best Practices for Investors on Diversity & Female Entrepreneurship

Guidance and Best Practices for Investors on Diversity & Female Entrepreneurship is a report published by the British Venture Capital and Private Equity Association.

The report was commissioned by the Alison Rose Review and HM Treasury, and includes tactical guidance for investors to create an inclusive pipeline and portfolio. It was inspired by broad recognition in the investment community that diverse and inclusive portfolios have substantially lower risk and better performance.

 

High-level, the report recommends:

  • Implementing specific tactics to recruit diverse talent to your investment firm
  • Adopting specific practices to create an inclusive culture at your investment firm
  • Using tried-and-tested strategies to remove bias from the investment process
  • Engaging with portfolio companies using validated tools and tactics
  • Signing up to the Diversity VC standard

Fairview Capital’s 2020 Market Review of Woman and Minority-Owned Private Equity and Venture Capital Firms

This 2020 report by Fairview Capital examines the state of woman and minority-owned private equity and venture capital firms.

The following report shares key trends and data observed by Fairview in 2020.

  • The universe of woman and minority-owned firms now totals over 500 and continues to grow rapidly
  • New firms are raising smaller pools of capital and first-time funds represent a larger proportion of the opportunity set than ever before
  • New firm formation activity is most significant in venture capital, a segment of private equity that has proven highly resilient
  • Diverse managers continue to feature a natural diverse multiplier effect at the portfolio company level, while at the same time, firms explicitly targeting woman and minority entrepreneurs are at an all-time high
  • The need for intentionality and genuine programmatic approaches to backing woman and minority-owned firms is at peak levels

SVB Report: Healthcare Investments & Exits Mid Year 2020

In this report, Silicon Valley Bank explores the mid-year state of healthcare investments and exits around the world.

Startups and Small Businesses Generated $1.3B in Economic Impact and 11,564 Jobs in 2019 – JumpStart

Startups and small businesses throughout Ohio and New York were thriving in 2019, generating at least $1.3 billion in economic impact on regional economies, according to a recent study published by Silverload Consulting based on data collected by JumpStart.

This study is a snapshot of startups and small business activity in Ohio and parts of New York, but the total impact of entrepreneurial startups and small businesses is even greater. The 2019 economic impact report includes data from 701 companies who responded to the survey and met qualifying requirements (at least one employee plus revenue or payroll.) 242 (34%) of companies led by people of color and 346 (50%) led by women responded.

Paradigm

Paradigm is a consulting firm that designs data-driven strategies, implements programs with impact, and trains employees and leaders for success.

While Venture Forward does not endorse commercial products, Paradigm produces a great deal of research, resources and events that they make available to the public for free.

 

Paradigm Events: Learn about the latest diversity, equity, and inclusion research, trends, and tactics used by best-in-class companies at one of Paradigm’s events. From full-day, interactive Paradigm DEI Labs to timely webinars, Paradigm’s events are designed to help drive impact.

Inclusion Insights: Paradigm’s magazine contains recent news, articles, press releases, information on upcoming events, and white papers, showcasing the importance of diversity and inclusion in the workplace.

Contact Information

Pandemic Impacts Entrepreneuring Women at Work and Home

The COVID-19 pandemic has impacted all business owners. The Diana International Research Institute (DIRI) team wanted to uncover just how it impacted a specific category of business owners: women.

How are the entrepreneurs responding to the revenue decline? Nearly 40 percent of business owners are deferring or reducing executive pay, more than one-third are delaying payment, and one-quarter are reducing employee hours.

The survey found that women-owned businesses face key structural inequalities due to smaller size and business age, and these businesses also are over-represented in the industries hardest hit by both need for essential services and the economic shutdown.

Young Firms and Regional Economic Growth: Knowledge-Intensive Entrepreneurs Critical

Young Firms and Regional Economic Growth demonstrates how knowledge-intensive and Main Street entrepreneurs are critical to long-term economic success. Metropolitans and micropolitans that started with stronger entrepreneurial ecosystems, as measured by the share of total employment at firms age five years or fewer (young firm employment share) and by the share of employment at those young firms with a bachelor’s degree or higher (young firm knowledge intensity), saw notably faster employment growth between 2010 and 2017 in the United States.

Most Heartland communities did not participate fully in entrepreneurial-driven job growth. There are multiple causes for the subpar rate of job creation in the Heartland besides low engagement in entrepreneurial activities; lower educational attainment with less emphasis placed on innovation tied to research and development stands out among them. However, no other single factor can claim a higher explanatory power than entrepreneurial activities.

Huge financial incentives to lure manufacturing facilities or other operations into a region is no longer cost-effective. The key to long-term economic success lies in developing environments that are conducive for entrepreneurs to start and scale up their firms. Communities must take a holistic approach to build their entrepreneurial ecosystems, and they must be inclusive. It is the ability to connect and engage the elements of an ecosystem as efficiently as possible to maximize job creation. Demographers like to say that “demography is destiny.” Young firms and the entrepreneurial ecosystems that spawned and nurtured them determine the economic destiny of communities.