The Venture Slowdown Is Impacting Fundraising for Startups of Every Size, Sector

Few firms are surviving the downturn from venture capital’s tumultuous year of 2021. The slowdown in venture capital activity is not limited to a particular stage or sector, according to new statistics from Carta, a supplier of shareholder management services to private enterprises. Instead, data compiled by Carta’s Head of Insights, Peter Walker, from a variety of Q1 2022 data points suggests that even the most established businesses would be affected by a drop in private market investment.

He told TechCrunch that “men’s and women’s health disorders are intimate problems that impact all of us at some time in our life, whether directly or through your relationship.” “And there were no suitable answers in Singapore and Hong Kong until we launched Noah and Zoey,” says the author. Because of the parallels between Singapore and Hong Kong, the business picked Hong Kong as its next market to grow into, according to Low. Both, for example, are highly populated and fast-paced, with similar healthcare challenges, he noted.

“While there are differences, Singaporeans and Hong Kongers share concerns about high healthcare prices, the fear of illicit drugs, the hassle of visiting a doctor, and the stigma linked to men’s and women’s health ailments,” he stated. While there is discussion among investors about how costly certain very early-stage rounds are, it appears that no business is immune to the consequences of the slowdown.

Slowdown is measured in series. When it comes to private enterprises, determining the impact of a downturn is more difficult. By definition, their financial information is private, which means we can’t learn anything about their revenue, margins, and various profit indicators, which aren’t very relevant in the case of pre-revenue enterprises.

Carta’s data is very useful for us because it gives us the number of rounds and total money raised by series for companies in the first quarter. The limitation is that the data only applies to startups who utilize Carta, and we haven’t identified anything that distinguishes them from their competitors who don’t. Before we dissect what the data says, let’s take a closer look at it. The number of rounds in each series on Carta is as follows.