Early-stage start-up deals shaped up in pandemic

The number of early-stage funding rose marginally in a pandemic year, however the average deal size became by almost a fourth, as indicated by a report.

While bargain volume rose 6% year-on-year in 2020-21, normal deal value bounced 23% counterbalancing the 13% less ventures found in the seed and pre-Series A sections, InnoVen Capital said in a report named ‘The Early-Stage Investment Insights Report FY 2020-21’. The report broke down market data, alongside a review led on 16 leading institutional early-stage investors.

“The funding momentum from 2019 proceeded into 2020 with $279 million of investments being made, regardless of a couple of long periods of lull brought about by the pandemic. B2B, shopper and edtech were the most preferred areas for studied investors,” as indicated by the report.

A larger part of investors (74%) anticipates that funding activity this year should stay at a similar level or pattern significantly higher, according to the report.