Custom accounting analysis

 

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It may seem unbelievable but it is true. In Q3 we are seeing a steady increase in funding to North American startups, much like we were in Q1 and Q2. Overall, venture capital investors have poured an incredible $35.7 billion into seed-stage funding rounds for many North American startups. This is a 9% increase from  Q2 funding levels, and a 2% gain from levels last year.

While this increase in funding may seem odd in a pandemic, the fact is that many businesses see the pandemic as an opportunity to start their dream businesses. Many people have been laid off or are unemployed, giving them plenty of time to focus on creating incredible business pitches, business plans, and startup ideas. Many deep-pocketed investors are taking notice and want to get in on the action while they can, and before these businesses take off.you should see it : Top rated accounting research services near me

It was thought that COVID-19 was going to lead to a very sharp pullback in North American startup investment, and yet that couldn’t be further from the truth. One possible explanation for the rise in investments is the amount of remote work being done. As an investor what could be better than investing in a business that has no brick-and-mortar shop, little to no overhead costs, and needs nothing more than an internet connection? With many companies choosing to take their operations online, many new business are being born both to service these companies and offer goods and services to consumers.

Some of the biggest areas of growth are education and commerce-driven businesses. With many people either choosing, or being directed, to take their work and schooling online, the online presence of the world has skyrocketed. This left a niche in the market for many businesses that would never consider an online approach, to test drive  an idea and be backed by dozens of investors willing to get in while it is good. As a result, there have been numerous companies coming out of the woodwork offering distance learning, remote collaborations and even telemedicine.

These new business models started grabbing the attention of investors early on, with Q2 seeing a huge leap in investments from Q1. However, with more and more businesses finding ways of creating new and innovative ideas, more investors are choosing to back start-ups more than ever. If the trend continues, we could see an unprecedented increase in Q4. However, people are starting to wonder how long this trend can remain positive.you should see it : Find accountant for company analysis
On the other end of the spectrum Q3 also have some of the highest exit numbers this year. Public offerings were way up, and some of the more highly valued private businesses, the so-called unicorns opted for traditional IPO’s or a direct listing. Companies that transitioned from the private to public markets rewarded their investors billions of dollars in gains. The main leaders of these markets are the software companies, including those offering cloud data warehousing services. The largest of these was Snowflake, with a record offering of $3.4 billion, and a market cap of $70 billion. More than 10 North American venture-backed companies which went public in Q3 with market caps in the billions of dollars!

As long as COVID-19 is keeping people indoors, many businesses will come up with more creative ways of increasing their earnings and cashflow by non-traditional means. At this point the “unicorn” bull market is looking like a raging bull, and showing no signs of stopping, even during these turbulent times.

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