California

The US venture capital (VC) industry had a record year in 2020. Despite headwinds from the COVID-19 pandemic and the worst recession since the Great Depression, the VC industry posted records for fundraising, investments, and exits. For the third consecutive year, high-growth startups raised more than $130 billion, and 2020 represented the fourth straight year where more than 10,000 venture-backed companies received an investment. At the end of 2020, 1,965 VC firms managed 3,680 venture funds and had approximately $548 billion in US venture capital assets under management (AUM), as well as a record $151 billion in dry powder heading into 2021. In 2020, the US remained the destination for about half of global VC investment dollars, attracting 51% of global capital invested. This year’s share of global investment is up slightly from the 49% reported for 2019 and is eight percentage points higher than the most recent low of 43% in 2018. However, these percentages stand in stark contrast to the 83% global share the US garnered in 2004, when the US held dominant sway over investors, and serves as a good reminder that capital and talent are everywhere.