The State of U.S. Early Stage Venture: 2Q21

From worst to first in a single year.

Writer, AngelList

Matthew Speiser

Published

July 29, 2021

90% of events that happened this quarter to early stage startups on AngelList were positive ones.
Nearly 12% of the startups in our portfolio raised a priced equity round in 2Q21, compared to just over 7% one year ago.
Average pre-seed valuations on AngelList jumped 26% compared to last quarter. Seed stage valuations jumped nearly 14%.
Startup credit card and payroll spend recovered to pre-pandemic levels.
See all the data by viewing our 2Q21 State of U.S. Early Stage Venture report.

The early stage venture industry continues to surge just one year after one of the worst quarters on record.

Markup rates for startups on AngelList soared to new heights in 2Q21, exceeding the previous record markup rate set in 1Q21. Meanwhile, valuations for startups continued to climb, and spending by founders bounced back to levels not seen since before the pandemic.

These are some of the highlights from our analysis of the state of U.S. early stage venture in 2Q21—which offers insights into all the deals that took place on the AngelList platform this past quarter. We paired our data with Silicon Valley Bank’s proprietary data on founder spending activity this quarter.

Collectively, this data offers a unique view into how capital flowed into and out of startups in 2Q21. Our analysis indicates that the early stage venture market has done a complete 180-degree turn from one year ago.

Specific insights covered in the report include:

Markup and positive activity rates
Valuations
Investment activity by sector
Funding to female founders
Popular investment instruments
Investor behavior on AngelList
Founder credit card spend
Founder payroll spend
Startup formation rate by locale

Read the report to see all of our findings.

Developed in partnership with Silicon Valley Bank.

Disclaimer:

All data referenced in this material is current as of 7/1/21, unless otherwise mentioned. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. We undertake no obligations to update them in the future. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. This report does not constitute an offer to sell or a solicitation of an offer to buy an interest in the partnership. Any offer to sell or solicitation of an offer to buy an interest in the partnership may be made only by way of the partnership's final definitive confidential disclosure document. All examples of past investments or funding rounds included in this presentation are purely for illustrative purposes. Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors. Performance of past deals or a lead investors' track record is not a guarantee of future returns.

Published:

July 29, 2021

Written by

Matthew Speiser

Writer, AngelList

Written by