In the early part of the investment stage, the global pie has been growing at an alarming rate (Series A and B). Just four years ago, people only invested less than $10 billion in a quarter; however, during the past two quarters, it has grown twice as much. With a Crunchbase projecting, it reached a record high of $25 billion in the early stages of investments. China along with Southeast Asia and Brazil’s early-stage rounds have been growing steadily in the global markets. For example, Series A investments like Venture ecosystems, is larger than some of the other kinds of investments.
In China, people have been putting a lot more money into Series A. The Chinese have been investing approximately in 2017, $32.8 million, over a third more than other companies. In 2018, 12 Chinese companies have been investing $100 million in the first quarter, growing to $4 billion. Some of the companies included: Ziroom, an apartment rental service in Beijing raised $621 million in Series A. Black Fish, a consumer finance platform company raised $145 million in Series A. Pony ai, an autonomous vehicle startup company raised $112 million in Series A. These three companies alone raised $878 million. Not only China has had plenty of startups, but the United States has had their share of startups as well. In the early-stage rounds, the United States has raised $100 billion, growing up to $1.8 billion. As mentioned before, many of these early-stage rounds are mature or spin-out companies. Some of these companies are Joby Aviation, an inventor of electronic aircraft and Vacasa, a management company for vacation homes. Also, healthcare companies are booming in big dollars. Two of these companies are Celularity, an inventor of placental stem cell-based therapies and another one is Viela Bio, an inventor of therapies for autoimmune diseases.
Over the years, the global market has been increasing with early-stage rounds trending higher. The reason for early-stage funding is because of the pattern of dynamics over time. These days markets have been moving faster and faster. It’s not surprising to see these market move fast in the first quarter. For example, Bird, a scooter sharing company, raised $115 million after just a few month of operation. The global market, as a whole, is increasing while companies are raising more and more early-stage rounds and raising millions of dollars to compete in the global market as well.
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