In 2020, emerging businesses have continued to transform every sector with disruptive business models – particularly in the technology and life sciences sectors. In parallel, the number of corporate venture capital investors surged, seeking opporunities to invest in the future of their industry. Global venture capital investment in 2020 consequently remained robust.
During the course of 2020, our Venture Capital and Emerging Companies practice advised strategic investors, financial investors, and emerging companies across the world on the full range of venture capital fundraising and investments, including early, mid-stage, late-stage, and growth equity transactions as well as exits.
Looking into 2021, companies that have recently raised funds will have liquidity to manage persistent economic uncertainty resulting from the COVID-19 pandemic. Others will need more funding and will likely have to compromise on valuations. Investors will continue to focus on their current portfolio before making new investments, and innovation will continue as companies focus on leveraging technology to increase profitability and drive growth.
The new world of remote working will bring more creativity to the venture capital sector and create opportunities for both corporate and financial venture capital investors alike.