The rate at which startups raising rounds worth $100 million or more are slowing, early data shows.
Looking back at historical periods stretching back a year, TechCrunch’s analysis of Pitchbook data shows that the second quarter of 2022 is poised to top the so-called first quarter mega-tower tally. And data from Crunchbase shows a similar decline.
Considering that the first quarter of 2022 saw fewer rounds worth $100 million or more than the last two quarters of 2021, we see a slowdown in late-stage private market investment.
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It’s no shock that there are fewer major venture capital rounds. Indeed, we anticipated this, given the pullback we have seen in software valuations more generally, and the fact that the risk climate for private market transactions has become more conservative in recent months. A sell-off in public markets coupled with geopolitical instability and inflation concerns will achieve this.
As the late-stage venture capital market becomes more stable, the crypto world is seeing immense deals raking in hundreds of millions of dollars. The contrast is noticeable. Let’s talk about it.
It’s still a good time to lift huge rounds
What makes it difficult to understand the evolution of the venture capital market is the fact that we are reaching unprecedented heights. So while the data indicates that there have been between 100 and 132 venture capital rounds worth $100 million or more (PitchBook and Crunchbase data, respectively) so far in Q2 2022, we have to understand that there is still a lot of money flowing today compared to history. standards, even if the numbers represent a short-term decline.
Looking back, it seems clear that 2021 will mark a high point for venture capital activity for quite some time. There’s little indication that 2022 will be able to beat last year’s tally, and with economic clouds on the horizon, anyone betting that 2023 is going to be on straight is betting against the mainstream wisdom.