Series A through F: sequential rounds of equity funding as the company grows, with “A” being the first in the series; usually, these rounds are funded by venture capital or private equity funds, which then become shareholders of the company
Debt: funding, often carried out by banks, that injects capital into a company; that capital then becomes a debt obligation for the firm – funders become creditors rather than shareholders
IPO/Stock Issuance: a public stock offering to raise capital.
In 2021, the scene is now much more one of a mature sector that attracts early-stage as well as follow-on growth funds in a more measured manner. In the chart above, we see steady movement between 2020 and 2021 from one round to the next up – B to C, C to D to E and so on. Matching this is a healthy degree of funding at the earlier stages (A and B) that holds out the promise of a continued stream of new entrants into the industry.
Not an entirely even picture globally
Last year we reported that Europe had assumed a significant position as a destination for funding in our industry, as had Israel (albeit on a smaller scale). For the first time, the U.S. share of funds invested fell to 57%, down from its dominant position in the early years when 90% + of the money went to American-based firms. In 2021, the U.S. regained some ground, achieving a 65% share based off a doubling of the amount invested in the insights sector. Europe (18%) and Asia (14%) accounted for the vast majority of the rest. Here, however, the similarity ends.