5 questions about 2021’s startup market

Welcome to 2021, a year that could extend 2020’s startup market disruptions and excesses — or change patterns that previously performed well for early-stage tech companies and their investors.

As we turn the page, I have a number of questions worth raising as we muck into 2021.

Each relates to a 2020 change that is expected to persist, by either the general market or those bullish on startups. I want to know what would need to change to shake up what became the new normal last year. After all, it’s precisely when it feels like nothing could shake up a downturn (or a boom) that things often do. READ MORE

Private Equity Turns to $3 Trillion in Untapped Value for Loans

Private equity firms on the hunt for capital are increasingly turning to specialty lenders for financing and providing a valuable asset as collateral: stakes in their funds.

The buyout industry has about $3 trillion of unrealized value on its books, according to Preqin. And it’s tapping that to land loans for bolt-on deals, to refinance debt or bail out struggling companies in their portfolios. READ MORE

5 Venture Capital Deals That Signal Major Trends for 2021

Venture capitalists are supposed to be investing in tomorrow's companies, today. And despite the pandemic, they plowed plenty of money into startups this year: While investment slowed down dramatically in the spring, VCs invested $36.5 billion in the third quarter of 2020, a seven-quarter high. Here are a five deals that shed some light on what the next year might look like--for entrepreneurs, their customers, and their backers. READ MORE

The big question on every startup’s mind for 2021

My big question for 2021, and the one that is on every startup’s mind, is how will a cataclysmic event such as a global pandemic show up in post-pandemic innovation? I think we’re in the early innings of seeing what ‘aha moments’ have materialized into companies. And we won’t know the pandemic’s true impact on our psyches until the dust settles and we have an opportunity to reflect. READ MORE

Moderna’s Vaccine Is A Startup Triumph

With the first doses of Moderna’s vaccine rolling out to frontline workers across the country, it’s easy to forget that the company behind this crucial tool toward ending the pandemic is itself little more than a startup.

To deliver a vaccine for mass inoculation with 94.5 percent efficacy in clinical trials in under 11 months is obviously in itself an astonishing achievement. READ MORE

SPACs 101 FAQ: A Primer On Today’s Hottest Exit Strategy

SPACs, shorthand for special purpose acquisition companies, have become this year’s most popular alternative option for private companies to access the public capital markets and become publicly traded. Earlier this year, capital market experts declared 2020 a banner year for SPACs. The latest numbers from DealPointData back the claim. As of Nov. 30, 2020, SPACs raised more than $64.35 billion in 203 IPOs, more than five times the amount SPACs raised—$12 billion in 38 listings—in all of 2019, also a record year. READ MORE

Venture Investors Turn To AI To Find Deals

From medicine to retail to the auto industry, there are few industries in tech that have not been changed or disrupted by artificial intelligence.

Now, some of the people investing in those sectors are using AI to figure out where to put their money next. While that may seem like an obvious use of AI and machine learning, it’s been something most VCs have been slow to adopt. READ MORE

2020 PitchBook Private Equity Awards

Private equity firms have long touted their ability to make savvy investments when the economy is disrupted. But the industry has never experienced anything quite like 2020.

Whether it was conducting fundraising roadshows over Zoom or embracing less-common investment strategies (hello SPACs!), the industry had to adapt. And adapt it did, with firms using their own considerable cash piles to keep struggling portfolio companies afloat while simultaneously making new investments. READ MORE

Equity Monday: No, tech news doesn’t stop over the holidays

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here — and don’t forget to check out the first of our two holiday eps, the last one talking to VCs about what surprised them in 2020. READ MORE

The stage is set for private investment to drive recovery

There are several reasons to be optimistic about 2021. Vaccines are starting to be made available and are expected to save lives, raising hopes that the US economy is poised to re-open next year. The US presidential election has largely been decided which has taken some uncertainty out of the markets. 

These positive developments have already helped stimulate the resurgence of private equity in the third quarter of 2020, when USD148 billion in transactions occurred that surpasses last year’s third quarter total by 10 percent, according to a new survey. READ MORE

Insights on the World of Private Equity - December 2020

Emerging companies have historically been backed by venture capital funds, but as Europe’s startup scene matures, involvement by more traditional private equity investors is growing, particularly in the tech, consumer, and digital health sectors. The number of PE investments in emerging companies has increased year on year, with investments in companies such as Wolt, Moonbug Entertainment, Zwift, Klarna, Epic Games, and Oatly demonstrating the range of opportunities available to PE sponsors in this space. While PE investors are increasingly familiar with VC deal dynamics, they are also pushing to align growth-deal terms more closely with traditional buyout concepts. READ MORE