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Megadeals Explode Early In The Year As US Startups Gobble Up More $100M+ Rounds

May 21, 2024 - news.crunchbase.com
The article discusses the rise in venture funding deals of $100 million or more, or "megadeals", for U.S.-based startups in 2024, with 115 such deals recorded through mid-May, a 58% increase compared to the same period last year. However, this is still significantly lower than the nearly 280 such deals recorded by this time in 2021 and 2022. The sectors benefiting from these deals are diverse, ranging from gaming to food delivery to quantum computing, with biotech and healthcare leading the pack with 38 deals so far this year.

The pace of these large deals has increased as the year has progressed, with a slow start in January followed by a pickup in February. Despite the overall venture numbers remaining steady or even slightly declining, investors are shifting funds from other late-stage growth deals and possibly some early-stage deals to fund these megadeals. This trend suggests that investors are willing to make large bets on companies they see as having significant potential. By the end of last year, there were 210 rounds of $100 million or more, and it is expected that this number will be surpassed this year.

Key takeaways:

  • U.S.-based startups have collected 115 rounds of $100 million or more, known as megadeals, through mid-May 2024, a 58% increase compared to the same period last year.
  • Startups raising these large funding rounds come from a variety of sectors, including gaming, food delivery, and quantum computing, with biotech and healthcare leading the way.
  • Despite a stagnating venture funding market, the pace of large deals has accelerated, suggesting investors are willing to bet big on companies with significant potential.
  • The data for this analysis was sourced from The Crunchbase Megadeals Board, which only tracks U.S.-based startups.
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