---
title: "The Velocity of Money in Startupland"
description: "Explore how startup funding velocity has accelerated in 2021, with IPO values 3x higher than 2020 and record-breaking M\u0026A activity in venture capital markets."
categories: ["exits","fundraising","data analysis"]
keywords: ["Theory Ventures","venture capital","startup funding","IPO market","M\u0026A activity","fundraising velocity","Tomasz Tunguz","unicorns","liquidity in venture capital","data analysis in startups"]
ai_summary: "Explore the unprecedented velocity of money in startup funding, highlighting record IPOs and M\u0026A activity in 2021."
date: 2021-07-30
lastmod: 2026-07-30
canonical_url: https://www.tomtunguz.com/vc-market-mid-2021/
author: "Tomasz Tunguz"
---

A venture dollar's velocity has never been faster. The time it takes for a dollar to appear in an LP's pocket, for the LP to wire it to a VC fund, and for the VC fund to invest can be measured in minutes. Then, hold your breath for the pre-emptive round, and you'll have 3 term sheets before you pass out. 

I'm kidding of course, but the hyperbole illustrates the velocity of money in Startupland. I've never seen a dollar move faster. 

What's driving this? Just look at these numbers in the exit markets.

![image]( https://res.cloudinary.com/dzawgnnlr/image/upload/v1627670260/zz4p9dih3m4bvt1zzvvv.png)
Startups are basking in the IPO market. They've raised 3x as much year-to-date in IPOs as all of 2020, which was a healthy market. Where will the tally end the year? $100B+? 120B+? See that blip in 2012? That was the Facebook IPO. 

![image](https://res.cloudinary.com/dzawgnnlr/image/upload/v1627670355/cxewdaavtif5q6b8q7ab.png)

The M&A market is not far behind; it's on track to double 2020's decade high of M&A value transacted. 

With liquidity figures rocketing into space alongside Branson and Bezos, it's no surprise to see the market behave this way.

VC fundraising will achieve a record. [Valuations are at decade highs](https://tomtunguz.com/2021-environment/). There are 3-5 financings and M&A every working day. There's an IPO every fourth or fifth day. 

I wrote a post in 2015 called [The Runaway Train of Late Stage Fundraising](https://tomtunguz.com/private-market-public-market-disparity/) that examined the disparity between the number of growth rounds and unicorns versus the number of IPOs. If this year has shown us anything, it's that the IPO and M&A markets have risen to the challenge; they've swelled to accommodate the team of unicorns born in the last decade.

And there's nothing more enticing to an investor to double down and move money faster than gains.