The number of deals fell 15% globally, a decline that corresponds with a sharp drop in the number of investor exits, which fell 16% in the quarter, as fewer startups are going public than in the previous quarter and fewer are achieving so-called unicorn status with a valuation of more than US$1 billion. The number of M&A deals fell by 16%, the lowest in six quarters.
Venture capitalists are reckoning with their worst quarter in almost a decade as economic uncertainty and lacklustre returns have prompted investors to hold back following the startup funding boom in 2021.
Global funding to startups fell 23% in the second quarter from the first, to US$108.5 billion, according to a recent report from CB Insights. While the US drove almost half of all funding – US$52.9 billion – that was still down 25% from the previous quarter and marked its lowest funding amount since 2020. The report indicates that the drubbing the crypto and public markets have taken in recent weeks is affecting private companies as well.
