Data in the report ‘Impact investing and the rise of sustainable tech’ shows that impact technology companies are receiving a fast-increasing amount of private equity investment. As the sector matures, those raises are becoming larger and focused on later-stage companies
GP Bullhound analysed more than 10,000 fundraiser transactions and 3,000 M&A transactions, starting in 2015, with the key data insights including:
- Record investment levels: Impact companies have raised record levels of investment in Europe and North America in 2020, breaking USD10 billion for the first time
- Growing funding rounds: Funding for impact companies has increased by 51 per cent in 2020, with the average size of funding rounds increased by 80 per cent in 2020
- Software leads the way: Software companies have dominated funding rounds in this sub-sector – making up 45 per cent of all impact investment activity
- Huge increase in M&A activity: M&A activity for impact companies also saw a record year in 2020 – reaching USD69.8 billion, with four mega deals representing USD36 billion
Source: Private Equity Wire
