Investors poured a record $330bn into private start-ups in the US last year, nearly doubling the total from 2020 in a flurry of dealmaking that rapidly inflated company valuations.
Venture capitalists vied with other deep-pocketed investors to win deals, giving leverage to the founders of attractive start-ups. Investors gained confidence from a wave of public listings that have delivered large returns to their backers, such as foundations and endowments.
Private venture-backed companies in the US raised a total of $329.8bn last year compared to $166.6bn in 2020, the previous record, according to PitchBook data. Investors put about four times as much money into start-ups than they did five years ago.