Here’s how much St. Louis startups raised in 2021 — and why 2022 could be a strong year for VC funding

St. Louis startups reeled in the cash in 2021.

Local startups raised $699 million in venture financing in 2021, according to a report published Friday by research firm PitchBook and the National Venture Capital Association. That’s up from the $490 million local startups snagged in 2020. The bulk of the 2021 funding came in the year’s second half, which included nearly $600 million in financing for St. Louis firms.

The 2021 total marks the most venture funding St. Louis firms have raised in a single year dating to 2014, according to Pitchbook’s data, which includes annual totals between 2014 and 2021. Local companies' strong showing comes as startups across the country closed on a record-setting amount of venture capital last year.

“U.S. VC-backed companies raised $329.9 billion in 2021, nearly double the previous record of $166.6 billion raised in 2020. Investment activity (measured in both total dollars invested and total deal count) for seed & angel, early-, and late-stage companies all hit records, as did investment activity for companies receiving their first equity round of institutional financing and companies raising VC mega-rounds (sized $100 million or more). Total deal count also increased substantially to an estimated 17,054 deals in 2021 (up from 12,173 in 2020), but the increase in deal count did not match the pace of the surge in additional capital, continuing the trend of increasing deal sizes,” Pitchbook’s report said.

In St. Louis, several startups in 2021 closed on financing deals considered “mega-rounds” of more than $100 million. Wugen, which is developing cancer-fighting therapies, closed a $172 million Series B round. Geneoscopy, which is developing diagnostic tools for gastrointestinal health, raised $105 million in financing while St. Louis fiber infrastructure firm Arcadian Infracom said it inked a deal to secure up to $140 million in financing to move forward with construction of its first fiber routes. Additionally, health care consulting firm Navvis & Co. closed a $105 million financing, according to Pitchbook’s report. A comprehensive list of St. Louis startups that raised capital in 2021 can be found here.

While startups have raised record amounts of funding, venture investors also have done so themselves. Pitchbook’s data noted that venture capitalists raised a record $128.3 billion for 730 investment funds in 2021. That marks the first time venture firms have raised more than $100 billion in a year. In St. Louis, several investors — including Ascension Ventures, RiverVest Venture Partners, Lewis & Clark AgriFood and Cultivation Capital — closed on financing for new funds last year. For startups both in St. Louis and nationwide, the influx of fresh capital bodes well for those on the hunt for cash.

“The good news for entrepreneurs is that there is a deeper and wider pool of capital sources available to fund and scale the next generation of innovative companies. The cohort of companies raising early-stage funding in 2022 and the environment under which they will scale their businesses over the coming years will determine the longevity and strength of future exit activity,” Pitchbook’s report said.

Here's how much St. Louis companies have raised in venture funding in each year dating back to 2014:

Source: Pitchbook/National Venture Capital Association