Venture Capital Trends of 2021

  • The healthcare wave of 2020 will continue.
  • Ecommerce solutions that mix shopping with social media will win deals in 2021.
  • Supply chain automation is the behind-the-scenes industry that will see continued funding in 2021.
  • Startup centers outside of Silicon Valley will grow as a percentage of deals closed this year.

Healthcare rides the wave into 2021

From mental health platforms and telemedicine to biotechnology and therapeutics, there was an uptick in funding in healthcare in 2020, propelled by factors induced by covid-19.

Mental health solutions are propelled by high demand & employer interest

Covid-19 and the associated lockdowns have had a significant toll on mental health, increasing the demand for mental health services including digital solutions. This factor combined with expanding coverage from health insurance and employers to pay for these services has supported a boom in digital solutions for mental health in 2020 that will continue its momentum into 2021.

Telemedicine is essential

Covid-19 accelerated the need for telemedicine and virtual care options in order for medical providers to stay afloat during the pandemic. As Inc.com reported on, health experts think that this trend in telemedicine is here to stay.

Biopharma will save the day

Our data shows a cluster of healthcare and biotechnology terms including “cancer drugs”, “cell therapies”, and “precision oncology” already popping up in 2021, based on January alone. Google trends has “biopharma” trending upwards and literally off the charts in February 2021. We think 2021 is going to be a big year for biopharma. A few biotech startups that have already secured venture funding in January 2021 are TScan Therapeutics, Immuneering and Theolytics.

The Ecommerce trend goes social

Supply chain automation is the new blockchain

Ok, we don’t actually think blockchain is on the out. But, supply chain automation is the behind the scenes buzz happening behind huge companies. Huge companies that rely on tracking suppliers and materials all around the world, are starting to catch onto the power of technology for these logistics processes. While you might hear autonomous vehicles and jump to wondering when you’ll be able to nap while your car drives itself, venture capital firms are thinking about the potential of autonomous vehicles to take over large scale supply chains. There is HUGE potential here, and vc’s are seeing it.

  • Uisee, an autonomous logistics vehicles startup, raised $150 million.
  • Wingcopter, a Germany-based drone delivery startup raised $22 million in a series A.
  • Slync.io raised $60 million to continue expanding their data-based logistics process automation software across Europe and Asia.
  • Pipe 17, a SaaS to help ecommerce connect and monitor their inventory and fulfillment processes raised $8 million in seed funding.
  • Lastly, Dallas-based Mercado raised $25 million to ramp up marketing for their supply chain automation software.

Venture Capital is moving out (of Silicon Valley)

For much of 2020, everyone in venture capital and tech was talking about whether or not Miami will be the new Silicon Valley. 2020 came with a massive physical exodus from San Francisco, the Bay Area and Silicon Valley, transforming the landscape in a big way. Many large companies in VC and tech physically moved their operations outside of the Bay Area. Palentir moved its’ headquarters from Silicon Valley to Denver last year; h ardware giant HP announced it was moving headquarters from San Jose, CA to Houston, TX; and Oracle also relocated its’ headquarters to Austin, TX.

Keep your eyes peeled for these trends

  • The healthcare trend of 2020 is here to stay.
  • Ecommerce + shopping = deals.
  • Supply chain is the new blockchain.
  • VC funding outside Silicon Valley is growing.

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