 Quarterly funding trend In Q2 2022, venture capital firms invested $62.3B in U.S.-based startups, a decrease of 23% from the same period last year. Despite the funding pullback, financing is still above pre-2021 quarterly levels. A Business Insider report argues that the funding trend may “not [be] as doom and gloom as Twitter would make you think.” More: - Per the Pitchbook data review by Business Insider, the deal count in the current quarter fell to 3,374, down from 4,467 in the preceding quarter.
- Despite over 100 late-stage large funding rounds being closed, big funding rounds were on the decline.
- VC-backed IPO listings fell to a 13-year low in Q2 this year.
- Meanwhile, U.S.-based venture capital firms raised over $120B in funds for the second consecutive year.
- As the deal terms have now shifted in favor of venture capital firms, the firms are now spending more time on due diligence.
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 QoQ venture funding for LatAm region Venture funding for the Latin American region amounted to $2.3B in Q2 of 2022, almost a third of the $6.7B amassed during the same period a year ago. The funding trend is in stark contrast to last year when the region was the fastest growing for venture capital globally. Funding has declined at a rate of 26% QoQ this year, which amounts to a 66% YoY drop. More: - 203 deals were closed in the current quarter, 38% lower than the preceding quarter and 39% lower than last year’s second quarter.
- Late-stage firms witnessed the steepest funding pullback, with 80% less funding available than the same period in 2021.
- Funding for late-stage businesses dropped from $5B last year to $1B in the current period.
- The year 2022 did witness a few large deals, namely Habi’s $200M Series C in May, Solfácil’s $100M Series C, and Unico’s $100M Series D.
- There was a 15% drop in early-stage startup funding from Q1 and a 35% drop from Q2 2021, with $1.1B spent in the current quarter.
- However, the funding is still higher than any quarter of 2020.
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 A message from ARGYLE Nearly half (49%) of 1099 workers reported being rejected for financial products they could afford. Why? More people are self-employed today than they have been in 20 years, with the trend expected to continue. What’s more, independent workers are pulling income from multiple, often diverse, gigs, largely due to rapid technological advancements and lightning bolt global events. Yet, our legacy financial infrastructures cater to traditional W2 workers with single, full-time jobs. The industry inadvertently marginalizes self-employed, 1099 workers, who struggle to access financial products like credit cards and loans. In our latest whitepaper, we break down what the lending space needs to know, the groundwork for what FIs are missing – and all the ways leveraging alternative data can lead the way to a more inclusive financial system. Download the whitepaper
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In line with other $1B+ funds announced in the last seven days, global technology-focused venture firm Battery Ventures announced two new funds with a total capital of $3.8B. $3.3B of the funds were raised under the firm’s Fund XIV, while the remaining $530M were raised under Select Fund II for follow-on funding into portfolio companies. Funds closed $300M short of the firm’s target of $4.1B. More: - The firm intends to invest in business software, fintech, healthcare, data/AI, dev tools, cybersecurity, consumer tech, and life sciences sectors.
- Individual check sizes in revenue-positive firms will range from $4M to $100M.
- In addition to investing across all stages, Battery is also interested in buyouts.
- Fund XIV’s predecessor 13th fund closed with $2B in capital in Feb. 2020.
- Battery Ventures has backed over 450 companies to date, of which 73 filed for IPOs and 190 were involved in M&As.
- Notable portfolio companies that were listed in the past year include Affirm, Braze, Coinbase, Olo, and Sprinklr.
- As of March, the firm’s assets under management totaled $17.8B.
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Nebraska-based cleantech company Monolith raised over $300M in funding led by TPG Rise Climate and Decarbonization Partners, a joint venture of BlackRock and Temasek. Using a proprietary process, Monolith creates clean hydrogen and carbon black using carbon-free renewable energy sources. The funding values the firm at over $1B, cementing its unicorn status. More: - Incoming funds will be diverted to advance its technology and forge partnerships in the industry.
- Existing investor Azimuth Capital participated in the funding, joined by new investors NextEra Energy Resources, SK, and Mitsubishi Heavy Industries America.
- The firm last received $20M from its Series C funding round in Aug. 2020.
- Monolith signed an agreement with SK last year to establish a clean hydrogen and carbon black manufacturing unit in South Korea through a joint venture.
- Goodyear Tire and Rubber Co. has contracted Monolith to supply carbon black for its various tire products.
Zoom out: - Venture capital firms are increasing their investments in clean hydrogen technology as clean hydrogen manufacturing technology advances.
- Last year, hydrogen companies amassed $1.28B in investments, up significantly from $5.39M in the year prior.
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 A message from TRIPACTIONS What are the secret weapons for controlling costs while ensuring that businesses can spend what they need to keep growing? Inflation may be a larger consideration today than in the recent past, but maximizing the efficiency of business spend is hardly a new concept for business leaders. We put together this cost savings reading kit based on considerations from finance, operations and HR customers with a number of options for reducing costs in this new environment. Download this complete kit to access: - Inflation-fighting checklists for corporate travel and finance managers
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San Francisco, Calif.-based Tecton secured $100M in funding from its Series C funding round. The company provides automation workflow of machine learning applications for enterprises. Through the incoming funds, Tecton intends to expand its engineering and go-to-market teams, as well as further develop its product. More: - The Kleiner Perkins-led funding round brings the firm’s total funds raised to date to $160M.
- Andreessen Horowitz and Sequoia Capital have co-led the firm’s seed, Series A, and Series B funding rounds, which brought in $5M, $20M, and $35M in financing, respectively.
- Both previous investors participated in the funding along with Databricks, Snowflake Ventures, Bain Capital Ventures, and Tiger Global.
- Tecton’s annual recurring revenue tripled in the 2022 fiscal year and continued to grow by 180% in the last quarter, buoyed by a five-fold increase in customers and a five-fold increase in user base.
- Notable customers include Convoy, HelloFresh, Plaid, and Tide.
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U.S.-based Wildcat Discovery Technologies, a firm developing high-density batteries for use in electric vehicles, raised $90M in Series D financing. The funding round was led by Koch Strategic Platforms (KSP). Wildcat will use the proceeds to accelerate the development of the battery cell technology, scale commercialization capabilities, and hire employees. More: - The "super cell" battery from Wildcat is expected to deliver a 90% improvement in energy density over current batteries.
- The funding was backed by Fifth Wall Climate and Eastman Kodak, the latter of which also signed an agreement to develop substrate coating technology.
- The current round is Koch's second investment into Wildcat.
- Wildcat last raised $20M from its Series C funding round in Oct. 2019.
- Flint Hill Resources and IPM Group led the Series C fundraiser.
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Quick Hits: - Elon Musk gave a shout-out to Boxabl, calling it a "cool product." Invest in Boxabl today with over 15,000+ investors!*
- Financial infrastructure firm Pico received a $200M investment from private equity firm Golden Gate Capital to fund strategic acquisitions. The firm was forced to abandon its IPO listing in February.
- Systemiq Capital held the first close of its second climate tech fund at $70M. The cleantech investor is targeting a $200M final close. Systemiq will invest in early-stage startups working in clean transportation, sustainable food production, and climate intelligence domains.
- Carrick Capital led a $75M Series B funding into cybersecurity firm Bishop Fox.
- Oregon-based energy storage solutions provider Powin LLC received a $135M growth equity funding led by Singapore's Sovereign Wealth Fund (GIC). Trilantic Energy Partners and Energy Impact Partners backed the funding.
- San Francisco, Calif.-based capitalization table and equity management platform Pulley nabbed $40M in Series B funding led by Founders Fund. Stripe and Elad Gil joined the funding.
- Prosus Ventures led a $28M Series B funding round into Indian cloud-based applications developer Detect Technologies, along with Accel, Elevation Capital, Shell Ventures, and Bharat Innovation Fund in participation.
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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