Good Morning,
As I mentioned last week, Cut Through Venture is a little different this month. It's our 1H 2021 in Review, which means three separate emails this week: i) Deals; ii) Startups; iii) People. There will also be far fewer words than usual. Instead, expect a ton of charts along with a few cocktail party 'conversation starter' factoids to help paint a picture of the half-year that was.
Asks for this week: 1) Be one of CTV's first Twitter Followers. 2) Forward this to 2 friends who you think will enjoy it. 3) Shoot me a note if you want more details on anything in particular.
Ok, onward...
Monthly deal volume snowballed
- Each month was better than the last from a total funding standpoint.
- Q2 funding was 2.3x that of Q1 – making Q2 far-and-away the biggest funding quarter in ANZ venture capital history.
- Monthly average deal size ranged from $7M to $14M, peaking in May.
Fintech and B2B software standout
- Fintech and B2B Software together attracted more funding than all other segments combined.
- 98% of Fintech funding flowed to NSW or VIC HQ’d startups. NSW and QLD startups accounted for 94% of B2B funding.
- Marketing / Customer success startups led average deal size at $18M, followed by Fintech and B2B Software at $16M. Consumer Products and Real Estate / Construction tech trailed the field with an average deal size of $5M.
Eastern states dominate
- NSW and VIC each attracted more funding than the other states and NZ combined.
- 97% of late-stage funding flowed to NSW, QLD and VIC based startups. NSW startups received 75% of Accelerator / Pre-Seed stage funding.
- QLD startups received the most funding on average at $23M. TAS came in second at $15M, and VIC third at $13M. SA, WA and NZ all received less than $6M on average.
Strong deal flow at all stages
- There was strong deal flow at all venture stages. Crowdfunding was an effective alternative to Angel/Pre-Seed funding, though just 23 startups successfully took advantage of it.
- Average deal size approximately trebled from each funding stage from Seed to Early to Late-stage deals.
- Retail / Marketplaces generated the largest average deal size at the Seed-stage at $10M. B2B Software led the way at the Later stage with an average deal size of just over $61M.
That's it. See you later this week.
– Chris
