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Fintech leads newly funded venture capital

Venture capitalists, G2D Investments Ltd, has announced a first quarter 19 per cent decrease in global funding to start-ups, down to $143.9 billion compared to the record breaking 4Q21.

The first quarter was still the fourth largest for funding on record – some seven per cent higher than the same three months in 2021, according to the Bermuda-headquartered company.

The firm invests in disruptive, high-growth technology and CPG companies in the US, Europe and Brazil.

G2D Investments Ltd made a profit of nearly $3.7 million in the first quarter, and at March 31 had more than $233 million in assets.

The company noted that quarter one included the birth of 113 new unicorns globally – the lowest number in five quarters and a slight drop from the 115 unicorns born a year ago in 1Q last year.

Unicorns are privately held start up companies with a value of more than a billion dollars.

Still, 20 per cent of venture capital went to fintech during the quarter, followed by 17 per cent to retail development.

Merger and acquisitions remained elevated with 2,983 deals.

The company reported global venture funding reached a record $621 billion in 2021, more than doubling the 2020 mark of $294 billion.

Fintech start-ups raised $132 billion in funding in 2021 – accounting for 21 per cent of all venture capital dollars.

Fintech funding was up 169 per cent compared to the $49 billion in 2020. In addition, a quarter of the unicorns were for fintech projects – the most by far of any industry.

The global unicorn count hit 959 in 2021 – up 69 per cent from 2020 – with the year seeing a staggering 517 unicorn births. The increase was driven primarily by rapidly rising valuations at late-stage deals, the company said.

The Bermuda Stock Exchange-listed G2D Investments said the environment of continuous technological development, along with talented entrepreneurs and the availability of capital will continue to provide excellent returns to investors in the long term.

Over the last 20 years, the company said, the asset class has offered superior returns compared to the public market in the US.

With years of rising valuation and companies remaining private longer, VC funds have had to adapt their strategy to raise larger funds to support the growth of late-stage companies.

Bermuda venture capitalist company, G2D Investments, Ltd, has reported that global venture capital funding reached a record $621B globally in 2021 (Photograph by David Fox)

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Published June 01, 2022 at 7:59 am (Updated May 31, 2022 at 10:00 pm)

Fintech leads newly funded venture capital

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