Venture Capital in 2022 following a record 2021.

Big Industries

With more venture funds raised in 2021, and more startups receiving funding than any time in history, can the market sustain this level of private market growth? Many analysts agree that SAAS funding will continue to grow, though valuations may simmer after their unprecedented levels in 2021. The market for digital and analytics venture funding continues bullish into 2022.

Biotech funding exploded in 2021 with a record $36.3 billion in funding, and investment in alternative and innovative biotech will likely continue in a post-pandemic world. Additionally, the market should respond to renewable energy needs and I expect an interesting year in this space as the fossil fuel market volatility continues to press the market. Lithium battery production continues to be a hot market, as electric vehicles begin to take a larger market share.

Silicon Valley flight.

On the heels of the work-from-home necessity of 2020 and 2021, California’s place as the epicenter of venture funding has waned. Startups are cropping up from all corners of the globe, and cost of living coupled with the accessibility of video-conferencing have allowed both founders and venture groups to spread across the country.

In conclusion, the world seems poised to respond to the rise of digital communication business and relieving pressure on imports from volatile markets. Logistics will continue to affect the consumer product market, though demand seems as high as ever. The funds are full, but IPOs should slow and long-term investments and rounds well into Series D and beyond may result.