Overall, VC investment in the Americas remained steady in Q2’20 – reaching US$35.6 billion over 2,354 deals. The 10 largest deals in the region all took place in the US, including a US$3 billion raise by Waymo, a US$850 million raise by Stripe, a US$700 million raise by Samsara, and a US$500 million raise by Palantir Technologies. Investments in the US spanned numerous sectors, including automotive, fintech, agriculture, drug discovery, biotech and application software.
While many VC investors in the US focused on managing the needs of companies within their existing portfolios during Q2’20, they also showed interest in companies with highly relevant, scalable business models aligned to meeting the needs of consumers and businesses within the ‘new normal’ – particularly companies focused on B2B productivity, cybersecurity, digital services, and e-commerce.
Life sciences and biotech solutions garnered significant attention from VC investors in the US during Q2’20, led by cancer screening company Grail’s US$390 million raise and drug developer Erasca’s US$200 million deal. While these sectors had already been on the radar of VC investors in recent quarters, the pandemic has focused attention of the need for healthcare disruption.
While the US attracted solid investment, other jurisdictions within the region saw both the number of VC deals and total VC investment drop. The VC market in Latin America was particularly hard hit given widespread travel restrictions coupled with its reliance on international investors.