New data out from @PitchBook today has big relevance for leaders at BigCo's, not just entrepreneurs.

Key #: in 2020, VCs put $156 billion into startups in the US.

https://www.prnewswire.com/news-releases/us-venture-exit-value-achieved-290-billion-in-2020-alongside-record-years-for-investment-and-fundraising-activity-301208088.html

Thread (1/x)

That is a record — the first time VC funding in the US has surpassed $150 billion in a year. Startup exits (IPOs + acquisitons) and the amount of $ pouring into #VC also set records: $290 billion and $74 billion, respectively (2/x)

At the same time, the #innovation and R&D folks inside big companies are getting squeezed. Their #2 challenge in 2020, according to data from @innolead & @KPMGUS_News, was "defending our budget and resources."

https://www.kpmg.us/growth-strategy/cxos-and-innovation.html (3/x)

And inside these BigCo's, the budgets for innovation and future-focused projects decreased "moderately" or "dramatically" at 27% of orgs last year, acc. to the @innolead/ @KPMGUS_News dataset of 211 survey respondents. That was a dramatic shift from prior surveys. (4/x)

To me, that points to a big pendulum shift. If you're in a BigCo, you have to acknowledge that the innovation activity in the startup world is skyrocketing at a time when your BigCo's investment (at least in terms of long-term innovation) may be dropping. (5/x)

Startups are building the future. BigCo's are largely still stuck fighting 2020's fires... and trudging through digital transformation projects. That suggests BigCo's need to get more serious about scouting/tracking/investing in/collaborating with startups. (6/x)

The C-suite jaunt to Silicon Valley or CES was never a serious startup scouting strategy. And most BigCo's don't have a comprehensively global "radar" for relevant startups.... or a streamlined way to collaborate with them, give them access to customers, etc. (7/x)

If you're in a BigCo, you should be working to change that in 2021.

Otherwise, it's a quick slide into total irrelevance. (8/8)