As we round the final tum into the fourth quarter, it is safe to call 2021 a recordbreaking year. We haveseen $88B ralsed by UlS venture capital funds, beating 2020’s fullyear record of $848 and bringing us vcedry powder to an alHtlime high of $1z6.Slmilarly. us vc imestment wil likely exceed $3208, nearlydouble 2020's previous high. With a record amount of VC seeking innowation company awnership,roundsslzes, valuation's, fewenue multiples,and the number of unicorns minted hawe reached newv highs. Liquid ityevent trends remalin strong., with 52 US VC-oacked tech lPOs and more than $500B in aggregate 'walueireleased 'in the last 12 months.M&A of us vC-backed companies is on track to hit a record 1,200 deals byyear end.

"While this ghves us much to celebrate, the ecosystem ls not im mune from macro headwinds. lnflation is thelhighest lit's been since 20O8,and a weakeninge dollar means lS startups (net sellers of the dollar] are worseoff". With shortages of chlips and the cost of shippling skyrocketing.manye campanlies have aver-ordered andstockpiled inventory, exacerbatling shoartages. Finding and retalning talent is also a concern for many high-growcth companlie. fhe ""reat Resignation" is coming To fruition as qult rates among US workers. includingiech workers ,are the highest recorded.At the same time, we see The "Great Reshuffline " changing themnature and location of jabs as migrations ramp up and we continmue to transition into a vemote-lflirst world."with change come new approaches; data shows growth ln the number of on-demand executive roles, to thelbenefit of startups, which will be able to more easily access executive talent.

 finally, a word of caution. Lompanles have thrown profitablility to the wind, revenue growth is squarely thetfocus, and lnvestors are willing to pay unprecedented valuations to get in on the "best”companfes. Thedizzy ing pace of linvestment, company spendling and exits glhves us pause. Yet the proliferation of the techsector through nearly every facet of our daily lives provides some validation for the euphoria we seeunfold ing in the linnovation economy. whille we do expect the pace to slightly slaw in the coming months,the linnowatlon economy 'is by and large healthy.