SVB State of the Markets: Q4 2021

Closing out a stellar year of record-breaking performance, the innovation economy prepares for a winter slow down.

Key Takeaways:

  • Liquidity of private markets remains strong this year

    2021 was another record year with 52 US VC-backed tech IPOs and an anticipated 1,288 US VC-backed M&A deals. Conversely, de-SPAC activity has slowed down from Q1’s frenzy with 455 SPACs in Q3 searching for targets.

  • Facing the headwinds: Inflation increases

    Supply chain problems exacerbated by US port congestion along with an increased money supply and a weakened US dollar has resulted in the largest rise of inflation since September 2008.

  • A new approach to venture capital

    Led by Tiger Global, hybrid private equity/venture capital investors willing to pay unprecedented valuations to get the “best” companies are deploying capital faster, disrupting the traditional venture model resulting in an expected 141% increase in the number of deals over $100 million.

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