North American Venture Capital Update - Unprecedented VC Surge Accelerates in Q2

VC funding, which was already steadily growing prior to the pandemic, surged to record levels during the Coronavirus crisis. A record $315.3 billion dollars of VC investment has occurred so far in 2021 globally, but the US remains the epicenter, accounting for over 40% of all activity. Over the first half of 2021, U.S. firms have raised more than $165.6 billion in VC funding. VC funding has surged throughout the pandemic period. In the ten years prior to the CoVid-19 crisis (2010 to 2019), the US had averaged $81.5 billion annually in VC funding. At its current pace (and the trend is accelerating), the market will quadruple that total this year as investment in an emerging wave of new tech verticals across virtually every industry suggests that we are entering into a new tech boom, one that is extremely well-funded. This has significant implications not just for economic performance going forward, but for commercial real estate—particularly office and R&D product. VC investment is ultimately about growth. Expanding the workforce is nearly always involved—thus driving commercial real estate demand.