Venture funding globally has declined sharply in the first half of 2022 compared to 2021, owing to macroeconomic conditions worldwide. As a result, startups looking to raise new funding in recent times had to settle for lower valuations and less friendly terms. Meanwhile, venture firms are raising new funds and are on track to surpass 2021's records. However, despite the new fundraising, VCs are hesitant to deploy the available dry powder. Background: - 2021 was a record year for venture funding, with $643B invested globally by year-end.
- The funding was up 92% since 2020's total of $335B.
- Q2 venture funding totaled $162B, down 26% QoQ and 27% YoY.
- In August, VC funding reached its lowest monthly levels over the last 24 months, down 52% YoY.
- VC funds had nabbed $137.5B in new funds by the end of July and are on track to surpass 2021's total of $142.1B.
Share your thoughts: - Do you expect venture funding over the next five years to reach 2021's levels?
- How long do you expect the venture funding winter to last?
- Will deal sizes and valuations return to 2021's levels, as few founders are currently reluctant to bring down valuations?
Here is the link to this week's community question.
| |
 QoQ venture funding The venture funding pullback is continuing in Q3 as a result of rising inflation and interest rates. Despite the dip, the YTD funding is in line with 2020’s levels. The current quarter’s funding is estimated to be above $40B, the quarterly average for the same quarter between 2017 and 2019. The firm estimates that venture capital firms have amassed $290B in dry-powder capital. More: - Funding volume in H1 2022 is down 12% YoY.
- A number of sectors, including life sciences, telecom, media, technology, SaaS, fintech, AI, and machine learning, are still getting funding.
- Another report from CRETI notes that 26% of the global funding was invested in proptech startups, up 5.65% compared to the first half of 2021.
- Venture firms are focusing their investments in the states of California, New York, and Massachusetts, according to the report.
| |
 A message from PREQUEL Prepare your teen for life beyond the classroom. Is your teen ready to manage their own finances? Learning money management and investing at an early age gives teens an enormous advantage for building long-term wealth and financial independence. Prequel gives teens a head start in the world of investing and a career in finance. In the 10-week investing bootcamp, teens will: - Develop an investor mindset for life
- Cultivate a career network and find top-tier mentors
- Gain skills straight from Wall Street and get an unfair advantage in landing that competitive finance internship
- Advance marketable career skills like the ability to analyze investments across asset classes, research companies, synthesize recommendations, and deliver effective presentations.
Prequel alumni have raised 1.6M in startup funding at 16 years old, started revenue generating businesses, interned at global companies, and attended top-tier colleges. Enrollment for Fall is ending soon! Use code INSIDE20 for 20% off. RESERVE YOUR CHILD’S SPOT NOW
| |
 Exec departures from SoftBank Vision Fund's leadership and managing partners have been leaving since 2020, according to Pitchbook. To date, the firm has lost half of its team and 11 of 15 board directors. The move comes as SoftBank CEO Masayoshi Son is liquidating key assets to offset losses incurred during the last 12 months. More: - The report indicates that many high-level executives started leaving the firm after SoftBank incurred heavy losses from WeWork's collapse.
- The firm reported a $23.4B quarterly loss at the end of Q1.
- Son liquidated part of its stake in Alibaba, raking in $34B from the transaction.
- The firm is currently divesting its stake in Arm and Fortress Investment Group.
- SoftBank's senior executive Rajeev Misra stepped down from his role as CEO of Global Advisors and CEO of SoftBank Investment Advisors in July.
- He was in charge of managing the Vision Fund and Vision Fund 2.
- Other key executive departures include Munish Varma and Yanni Pipilis, both of whom will join Misra at his new venture firm; Deep Nishar, who has joined General Catalyst; and Ervin Tu, who has been hired by Prosus.
Zoom out: - 85% of the $56B Vision Fund 2 has been deployed.
- The firm is evaluating its prospects of raising a new $41.3B third Vision Fund.
| |
Online video platform Rumble debuted on the NASDAQ bearing ticker name "RUM." The firm merged with SPAC CF Acquisition Corp. VI, a blank-check company formed by Cantor Fitzgerald. The company expects to raise $400M. More: - Rumble is backed by Peter Thiel, Narya Capital, and Colt Ventures.
- The merger valued the firm at $2B.
- Incoming funds include $300M in cash, $85M in PIPE financing, and $15M in forward purchase investments.
- Research firm Sensor Tower’s data shows that the application has been installed by 7 million users.
- Monthly app installs increased by 250% in August.
- Rumble intends to use the fresh funds to grow its user base, attract content creators, develop its infrastructure —including its own cloud service — and back future acquisitions.
Zoom out: - The firm’s nearest competitors include Parler, Gettr, and Truth Social.
- Last Friday, Parler raised $16M in Series B funding and acquired cloud company Dynascale Inc.
| |
 A message from DOIT INTERNATIONAL Global spend on public cloud services is predicted to be $1.1 trillion by the end of 2023. The cloud offers unprecedented potential for efficiency and innovation because of the agility, scalability, reliability and speed it can unlock. But for as many challenges as cloud technology solves, many businesses still struggle to simplify IT budget and spending. “Managing cloud cost is not always about reducing it–it’s about optimizing spend to the right level to truly enable your business,” says John Purcell, Chief Product Officer at DoiT International. In the digital native’s guide to understanding and optimizing public cloud costs, you’ll learn about: - Confronting cost challenges
- Understanding complex cost models
- Managing cloud costs effectively
Download this guide to get started. Get the Guide
| |
Cryptocurrency exchange platform Yellow Card Financial closed its Series B funding round at $40M. The funding was led by Polychain Capital. The firm intends to scale the organization, accelerate product development, and form new strategic partnerships with the fresh capital. More: - The Nigeria-based firm offers Bitcoin, Ether, stablecoins, and other cryptocurrency trading via its platform for the African region.
- A year ago, the firm nabbed $15M in Series A funding led by Valar Ventures, Third Prime, and Castle Island Ventures.
- All the Series A lead investors participated in the current funding, joined by Sozo Ventures, Fabric Ventures, DG Daiwa Ventures, and others.
- Since the last fundraise the company has now expanded its platform to 16 countries, hired a CFO and CISO, and launched crypto-powered payments solution Yellow Pay.
- The firm claims it had 1 million customers using its platform in March.
| |
1MRobotics emerged from stealth with a $16.5M Series A funding round. Ibex Investors led the financing, joined by Emerge VC, Target Global, and INT3. The firm is developing robotic nano-fulfillment centers and will offer the stores to retailers and e-commerce organizations. More: - 1MRobotics has developed two solutions, namely Genesis and Flexis.
- The firm had received $8.5M from a previously undisclosed seed funding round.
- Competitors in the space include Fabric, Attabotics, Nimble Robotics, AutoStore, and Ocado Group.
- Fabric raised over $300M and cemented its status as a unicorn startup.
Zoom out: - Interact analysis forecasts that there will be 45,000 "dark stores" globally by 2030.
- Logistic startups nabbed $27.5B in venture funding in 2021.
| |
Quick Hits: - Spending a lot of time managing your cloud infrastructure? Free up your schedule by using intelligent technology to streamline CloudOps*
- Private equity firm Baring Private Equity Asia slowed its investments in the last two months. The firm reportedly backed out of deals worth $6B as it expects firms' valuations to drop in the next few months.
- SoftBank and Lightspeed Venture Partners-backed Indian hotel-booking startup OYO Hotels is looking to revive its IPO plans. CB Insights values the firm at $9B. According to the latest financial reports, the firm lost $237M in the last fiscal year.
- Retail technology platform Swiftly cemented its unicorn status with the latest $100M Series C funding round led by BRV Capital Management.
- Life-sciences startup Naveris Inc. is working on detecting viral-driven cancers at early stages. The firm nabbed $33.4M in Series A extension funding, bringing the total under the round to $51M. TechU Ventures and BrightEdge participated in the Gurnet Point Capital-led fundraiser.
- Healthcare focussed investment firm Concord Health Partners closed its Innovation Fund II with $150M of capital commitments.
*This is sponsored content.
| |
Upcoming Events: - September 21 - AMA with Kristen Ruby (Founder of Ruby Media Group) (Register Here)
- September 22 - "Top 10 Overlooked VxWorks Features" with Brian Kuhl (Register Here) *
- September 28 - AMA with Leigh-Ann Buchanan (Founder of aīre ventures) (Register Here)
- October 05 - AMA with Ram Bartov (Chief Accounting Officer at TripActions)* (Register Here)
- October 11 - AMA with Mike Malone (Smallstep)* (Register Here)
- October 12 - AMA with Bill Glenn (Executive Chairman at Crenshaw Associates) (Register Here)
- October 19 - AMA with Zecca Lehn (Responsibly VC) (Register Here)
- October 25 - Meet Our Fund 4, an Inside.com Summit (Register Here)
*This is a sponsored listing.
| |
 |  | 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 and 1972 Fords. | |
Prequel enrollment for Fall is ending soon! Use code INSIDE20 for 20% off! | |
DoiT's intelligent technology portfolio provides you with the power to simplify and automate the way you manage your cloud — all at no extra cost. | |
Comments
Post a Comment