The annual CB Insights State of Venture report has been published and despite COVID-19 or perhaps because of it, it was a stellar year for funding as records were smashed all around.

One takeaway is that perhaps the tech industry last year looked like 1999. Whether that’s going to be followed by a crash is arguable, although some suggest that we could be in a new dot-com bubble all over again.

In 2021, tech startups saw 1,556 mega-investment rounds of more than $100 million, smashing the previous record in 2020 of 630. Annual U.S. venture funding doubled to hit a record high of $311 billion — half the global total on 12,281 deals, another record.

Early-stage deals were a key driver in 2021, accounting for 55% of all deals, which the report suggests is a signal of an even more robust venture market in 2022.

New unicorns, startups with a valuation of $1 billion or more, hit 959 in 2021, up 69% from 2020, with 517 new unicorns created during the year. No surprise, that’s yet another new record. As of the end of the year, there were 44 decacorn startups, those with a valuation of $10 billion or higher.

Global financing in 2021 hit a record of $621 billion, more than double the previous record of $294 billion in 2020. The fourth quarter of 2021 also broke a record with $176 billion in funding, the sixth straight quarter of growth. All regions saw record funding, though the U.S. was by far the leading region for total funding, followed by Asia, Europe and Latin America.

Asia is now the top region in total deals, with a 36% share. It saw 12,485 deals in 2021, surpassing the U.S. for the first time in seven years of tracking. Deals involving mainland China-based startups counted for more than half of Asia’s total. The region also saw a record year for funding, coming in at $176 billion, up 89% from 2020.

Mergers and acquisition also hit a record high with 10,782 deals, the first time the number has surpassed 10,000 and up 58% over 2020. The party continued into the fourth quarter, which saw 2,938 exits, again the highest quarterly number on record.

Special-purpose acquisition company deals averaged $1.6 billion in 2021 — yes, another record, and double the median initial public offering valuation of $547 million. The number of SPACs grew 247% in 2021, as they’ve become an attractive alternative to traditional IPOs. That said, CB Insights also warns that SPAC exits will likely slow in 2022 as the U.S. Securities and Exchange Commission contemplates more regulation.

Of the funding going to startups, financial technology led the pack with $132 billion in funding. That equates to 21% of all funding going into fintech. The amount invested in fintech was up 169% over 2020, yet another new record high.

Tiger Global Management topped the year as the most prolific investor, backing 328 companies in 2021 and 107 in the fourth quarter.

By region, Silicon Valley, including San Francisco, is still the king of tech investment, with companies in the area raising $105 billion during the year. New York took second place with $55 billion, partly because of the fintech funding boom. Boston landed in third place with $32 billion, thanks to a thriving biotech market there.

Picture: Steven Damron/Wikimedia Commons