$150 Billion Investment Poured into US Startups in First Half of Year, 'Record High'

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] According to the Wall Street Journal (WSJ) on the 1st (local time), investment in U.S. startups in the first half of this year reached $150 billion, marking an all-time high.

The Journal reported that large-scale funds are flowing in as institutional investors such as hedge funds, pensions, and sovereign wealth funds, which were rarely seen before, are investing in startups.

The $150 billion investment in U.S. startups in the first half of this year, compiled by financial information firm PitchBook, has already surpassed the total annual investment amount before 2019. The number of deals over $100 million also increased significantly from 96 in Q4 last year to 187 in Q1 this year and 198 in Q2.

The share of investments by "non-traditional investors" such as hedge funds, mutual funds, pensions, and sovereign wealth funds was recorded at 42%, surpassing venture capitalists who primarily invest in startups. Investments by these non-traditional investors in U.S. startups surged from $12 billion in 2010 to $103 billion last year.

The Journal noted that non-traditional investors are more attractive to startup founders because they demand less board participation or management involvement compared to venture capitalists.