VC Hits Record

Even though economic shutdowns from COVID-19 have slowed the economy, it hasn't affected the venture capital market. Andreessen Horowitz closed two $4.5 billion funds, increasing the total venture capital raised in 2020 to $69.1 billion, surpassing the previous record of $67.8 billion raised in 2018. However, there were 589 VC funds started in 2018, but only 287 VC funds started in 2020. As the numbers show, there are fewer, but larger, VC funds started.