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U.S. startups raised $130 billion in record-smashing year for venture capital

Just weeks into the pandemic, we reported that venture capitalists were still doing deals, even though their offices were closed and their flights were canceled. But we didn't quite foresee the WFH gusto.

Driving the news: U.S.-based venture capital hit an all-time record in 2020.


By the numbers: U.S. startups raised $130 billion last year, topping the prior high of $120 billion set back in the dotcom craze of 2000, per the MoneyTree report.

  • PitchBook has a slightly higher 2020 total ($156 billion), but we're highlighting MoneyTree because it existed back in 2000 (albeit with some different partners and methodologies). PitchBook wasn't founded until 2007.
  • MoneyTree reports that the number of 2020 deals was not only well below 2000, but at the lowest total since 2013. In other words, the boom was driven by a record number of mega-rounds, which represented 49% of the 2020 dollar total.

(Not) leaving San Francisco: Bay Area companies continued to dominate, in terms of both dollars and deals, despite the "leaving San Francisco" narrative. In fact, Bay Area startups raised just 1.3% less than startups in Los Angeles, New York, Boston, Austin and Seattle combined, per PitchBook.

The bottom line: 2020 obviously wasn't the same as 2000, in terms of everything from business models to smartphones to lockdowns. But both VC surges were propelled by kinetic public markets, and the concurrent valuation inflation and rush to fund. So this time it is different, but it's also the same.

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Republicans' push to ban "discrimination" against unvaccinated people

State Republican lawmakers around the country are pushing bills — at least one of which has become law — that would give unvaccinated people the same protections as those surrounding race, gender and religion.

Why it matters: These bills would tie the hands of private businesses that want to protect their employees and customers. But they also show how deep into the political psyche resistance to coronavirus vaccine requirements has become, and how vaccination status has rapidly become a marker of identity.

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Over 535 charged over the Capitol riot. The FBI is hunting for more suspects 6 months later.

A Virginia man charged over the deadly U.S. Capitol riot told an undercover FBI agent he belonged to a militia-style group that had explosives and surveilled the building a month after the insurrection, per a court filing unsealed Tuesday.

The big picture: Fi Duong, 27, who allegedly told the agent the group referred to their meetings as "Bible study," is one of more than 535 defendants arrested in nearly 50 states, the Department of Justice said in a statement marking six months since the Capitol was stormed.

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