)espite what we hoped for by 2021. many parts of the world are still fas s mandatory lockdown ind COVID-19 cases continue to grow. However, with several vaccines approved and being administered. there is light at the end of the tunnel. As the world shifted in 2020 so did venture. Once-forlorn industries became winners almost overnight and previously struggling ones saw revenues skyrocket. After coming to terms with the lew normal, investors picked up their investment pace. We saw preferences shift to companies focusing on strong revenue growth over profitability. Valuations for some companies continued to alloon bolstered by larger and quicker rounds, widening the divide between those with easy access to funding and those without. Foreign exchange attracted renewed attention after the historically strong US dollar declined by double digits, adversely impacting unhedged companies by shortening their cash runways and valuations ahead of potential exits and raising rounds. On the exit front, the performance in the first and second halves of the year diverged: Activity in the first half was muted by steep public market declines and companies pulling back to deal with the short-term impacts of the pandemic. By the second half, activity accelerated as public markets rebounded and companies adapted to operating remotely. Highly anticipated IPOS from Airbnb and Door Dash helped buoy IPO markets and M&A activity, which improved through the rest of the year. By any measure, 2020 was difficult but it also proved the resilience of the innovation ecosystem There is still a long road ahead before life goes back to normal for many of us(or whatever becomes normal). Yet strong fundamentals driving the innovation economy make us hopeful for
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