The pace with which According to preliminary data, the number of rounds of attracting startups worth $100 million or more is slowing down.
Looking at historical periods stretching back a year, TechCrunch analysis Pitchbook the data shows that the second quarter of 2022 is on track to fall behind the so-called first quarter mega rounds. And data from crunchbase shows a similar decline.
When we consider that there were fewer or more $100 million rounds in the first quarter of 2022 than in the last two quarters of 2021, we are seeing a slowdown in investment in the late stages of the private market.
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Not surprisingly, there are fewer large rounds of venture capital going on. Indeed, we foresaw this, considering the reduction we saw in software ratings in general, and the fact that the risk climate for private market transactions has become more conservative in recent months. A massive sell-off in the public market, combined with geopolitical instability and inflationary fears, will lead to this.
While the late-stage venture capital market is becoming increasingly stable, there are huge deals going on in the world of cryptocurrencies that are raising hundreds of millions of dollars. The contrast is noticeable. Let’s talk about it.
It’s still a good time to raise huge rounds
What makes it difficult to understand the changing venture capital market is the fact that we are coming down from all-time highs. So while the data shows that there were between 100 and 132 venture rounds worth $100 million or more in the second quarter of 2022 (data from PitchBook and Crunchbase respectively), we have to understand that there is still a lot of money flowing today compared to with historical data. norms, even if the figures represent a short-term decline.
Looking back, it seems clear that 2021 will be the high point for venture activity for a while. There is little indication that 2022 can beat last year’s performance, and with economic clouds on the horizon, anyone betting that 2023 will be directly covered is betting against prevailing wisdom.
Credit: techcrunch.com /