Global venture capital (VC) investment touched $171 billion across 8,710 deals in Q4 2021, only slightly below the previous high of $180 billion on 9,953 deals achieved in Q3 2021, according to KPMG’s Venture Pulse Report. Nine over $1 billion megadeals by companies in the US and Asia have helped drive this surge, contributing over $13.5 billion to the quarterly global investment total.

According to the Q4 2021 edition of Venture Pulse, a quarterly report published by KPMG Private Enterprise on VC trends in key jurisdictions around the world, the quarter witnessed near-record highs for total venture capital investment, corporate venture capital investment, exits and global fundraising.

VC investment remained close to record levels with the swift pace of Q4 2021, capping off what has been a banner year for the global venture capital market. Corporate VC remained strong, reaching $81 billion in Q4 2021, slightly off the previous record of $90 billion set in Q3 2021. The percentage of investment by corporates reached an all-new high in Q4 2021, with corporates participating in 29.4 per cent of all VC deals globally.

VC investment in India, however, dropped dramatically in Q4 2021 compared to the record high set in Q3 2021. Despite the optics, Q4 2021 was India’s second-best quarter of VC investment ever.

Sector-wise performance

From a sector perspective, fintech was a very strong area of VC investment in India during Q4 2021, in addition to healthtech, B2B services, and direct-to-consumer platforms.

India also saw a steep rise in both the number of corporate venture capital (CVC) deals and the total of CVC investment compared to previous highs.

On an annual basis, global VC investment rose from $347 billion across 31,623 deals in 2020 to a record $671 billion across 38,644 deals in 2021. It was a record year for VC investment in all regions of the world.

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