Snapshots

The Bay Area reeled in $12.1 billion of VC funding in Q2 2020

In the second quarter of 2020, the Bay Area accounted for 17.3 percent of global VC funding and 46 percent of domestic VC funding.

July 21, 2020
 
  • It still may be too early to assess the long-term impacts of the COVID-19 pandemic, however, social distancing measures and any semi- or permanent changes to work and lifestyle as a result of such measures could alter investment strategies and ultimately where money will flow in the future.

  • The Bay Area saw the percentage of funding allocated to the 6 major industry clusters change this quarter. The most notable change occurred within the FIRE tech industry as it realized a $563 million increase in the total amount funded quarter-over-quarter. Fintech companies, Robinhood and Varo Money lead the way in funding amounts, receiving a combined $521 million in Q2.

  • Despite the massive pause in global activity, total VC investment in the Bay Area saw an increase of $6.9 billion on a year-to-date basis indicating that total VC funding in the Bay Area is on track to surpass 2019 figures. This data illustrates that investment sentiment in the Bay Area so far has not been impacted by changing local and world market conditions. Thus, tech-related industries may help buoy the market moving forward.

  • According to JLL data, the total real estate footprint of the top 10 highest-funded companies in the Bay Area is currently approximately 3.3 million square feet. An indication of the importance of having a real estate footprint in the Bay Area as access to talent and funding is unparalleled.