The State of U.S. Early-Stage Venture and Startups: 3Q21

How capital flowed into and out of startups in 3Q21.

Writer, AngelList

Matthew Speiser

Published

October 28, 2021

3Q21 was the second-best quarter ever for early-stage startups on AngelList in terms of positive activity (markups and exits).
Roughly 11.3% of the startups in our portfolio raised a round or exited.
Median pre-seed valuations were $8M and median seed-stage valuations were $15M.
Blockchain and crypto startups on AngelList captured 16.6% of all deployed capital.
Startups with a female founder comprised 17.95% of all deals.
Read all our findings in our 3Q21 State of U.S. Early-Stage Venture & Startups Report.

Venture funding into early-stage startups on AngelList remained extremely elevated in 3Q21. Roughly 87% of events that happened to startups in the AngelList portfolio in 3Q21 were positive ones (markups or positive exits)—a minor downtick from 2Q21’s record-high of 90%.

Pre-seed through Series B startups on AngelList also saw marked average valuation increases in 3Q21.

The money that flowed into startups was spent at a healthy clip, according to Silicon Valley Bank data. Overall spend and payroll spend among early-stage consumer, enterprise, and fintech startups has increased every quarter dating back to 2Q20.

These are a few insights from our analysis of U.S. early-stage venture and startup spend in 3Q21. Our venture data, combined with Silicon Valley Bank’s startup spend data, provides a comprehensive overview of how capital flowed into and out of startups in 3Q21—and what it means for the early-stage startup ecosystem.

Key data points in the report include:

Markups and positive activity rates
Startup valuations
Popular markets
Funding to female founders
Popular investment instruments
Investment volume by round
Overall startup spend
Payroll spend
Startup spend by vendor

This quarter’s report also features a deep dive into the state of the NYC startup ecosystem.

Disclaimer

All data referenced in this material is current as of 10/1/21, 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:

October 28, 2021

Written by

Matthew Speiser

Writer, AngelList

Written by