According to CB Insights statistics, the first quarter of 2022 generated a historically large amount of funding for global startups, outpacing any quarter in 2018, 2019, or 2020. Nonetheless, despite historically high outcomes in Q1 2022, venture capital investment slowed from Q4 2021 levels. And, based on statistics, it appears that late-stage firms are under the biggest financial strain.
We can see that the most mature startups — or at least the startups priced as if they were among the most mature technology upstarts — are seeing the market shift underfoot by looking at the rate of unicorn creation, how frequently we’re seeing nine-figure rounds, and late-stage deal sizing in general. This isn’t a doomsday prediction. There’s nothing in the market statistics that suggests the startup fundraising market is collapsing; in fact, there’s plenty of strength to be discovered in some areas and geographies, which TechCrunch+ will investigate next week.
New market circumstances, on the other hand, may compel hard decisions in the coming quarters for the large group of startups valued at $1 billion or more. And, if current patterns continue, the pressure on late-stage firms may increase. What is already a headache might quickly turn into a migraine. Let’s have a look at the data. What is the rate of cooling in the late-stage startup financing market?
Let’s look at some of the data we collected during the 2021 venture capital binge to see how the late-stage industry is cooling. The following major parameters in flux were highlighted in the CB Insights global venture capital data package for Q1 2022: I can’t and won’t quit. That looks to be the case for the worldwide venture capital market in Q1 2022, according to preliminary statistics. Crunchbase News1 provided new statistics this morning that depicts a market that is declining but not stopping.
In financial terms, the statistics demonstrates that the worldwide venture market in Q1 2022 was actually greater than it is year-ago counterpart. However, it was a drop from the fourth quarter of 2021, the first in several quarters of record-breaking venture totals. In the next days, the Exchange, as well as TechCrunch+ in general, will look at the global VC industry from a variety of angles. The usual suspects – Crunchbase, PitchBook, CB Insights, venture organizations, and startup-servicing banks – will fill in the gaps in today’s fragmentary picture of the globe.
