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The number of new unicorn startups minted this year globally has dropped by half compared to 2021. Only 244 startups have reached the coveted valuation so far. More: - Compared to the 542 unicorn startups created in 2021, this year's unicorn trend has followed the general startup trend, where funding in practically every stage has seen a significant drop.
- The decrease can be noticed in both the number of rounds that were raised as well as the overall amount.
- In Q3 alone, venture funding for the third quarter of 2022 totaled $81B, down by $90B (53%) YoY and by $40B (33%) QoQ. Global early-stage funding totaled $34B in the third quarter of 2022, a decline of 25% QoQ and 39% YoY.
- Global venture funding reached $22B in November 2022, down 69% from $70B in November 2021.
- Up until March 2022, India minted 14 new unicorns, almost one per week, but the trend fell significantly after March. The country only had nine startups reach unicorn valuation during the March-December period.
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German startups received 50% less funding in 2022 YoY, but the number of unicorns minted remained almost the same. German startups received $20.4B in 2021 compared to $11.4B as of Dec. 14, 2022. More: - Six new unicorns were created in 2022, compared to last year's seven. Some of these unicorns are:
- Choco (ordering software for restaurants and suppliers),
- Grover (rental platform for furbished tech), and
- Flying taxi company Volocopter.
- Volocpter had one of the largest funding rounds this year, managing to raise $182M. This funding round became Germany's largest deep tech fund in history.
- Celonis, the country's shining jewel in the startup ecosystem, reached a $13B valuation after raising $1B in debt and equity.
- Venture Capital firms also raised funds of their own. Some of these funding rounds are:
- The number of female-founded startups also increased to 20%, a figure that has constantly been rising YoY since 2018.
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- Pick your favorites: invest anywhere between $100 to $50K per property.
- Boom: you're officially earning income and appreciation while Arrived manages your properties.
Both first-time investors and long-time real estate millionaires are flocking to Arrived, funding over 200 properties and $75M of property value since last year. Demand is high. What’s holding you back? Browse Properties
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Sequoia Capital made the most investments in Indian startups in 2022, with Accel following up as the second most active investor. Overall, Sequoia's funding activity in the region dropped by 30%. More: - Sequoia Capital made 71 deals as of November 2022, a drop from the 103 deals it made during the same period in 2021. The firm continues its three year-run as the leading startup investor in the country, having made 87 and 88 deals in 2019 and 2020.
- The firm has a freshly raised $2.85B fund available for investments in Southeast Asia.
- Some of Sequoia's investments in 2022 include:
- Climes,
- Rigi.Club,
- Hubble,
- Apollo.io.
- Venture Capital investments by size fell 34% to $23.2B in 2022, a significant drop from the $35.4B in the same period the previous year.
- Accel, the second most active investor in India, invested in 54 startups. The number represents a 19% drop in the number of deals made.
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The Dutch Senate has approved new legislation on employee stock option compensation. The decision enables startup employees to pay taxes on the profits from stock options in case of a successful exit or a private market sale. More: - Under previous rules, employees had to pay taxes on their stock options regardless if they were allowed to sell their shares or not, resulting in financial difficulties for them.
- Situations like these became detrimental for companies who wanted to hire top talent by using stock options as a tool.
- According to industry experts, the U.S., U.K., Sweden, and Israel have more startups founded by former employees because they had access to larger equity pools in the startups they initially worked in.
- Dutch entrepreneurs and community members stated that the decision made by the Ministry of Finance, as well as the Ministry of Economic Affairs and Climate Policy, is the right one and comes as a result of a long-term commitment from Dutch entrepreneurs to raise awareness on the issue.
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California-based Private equity firm Butterfly has acquired Milk Specialties Global to expand its food and agriculture investments portfolio. Butterfly has invested over $10B in the food sector since its inception. More: - Milk Specialties Global manufactures nutritional ingredients with manufacturing facilities in six U.S. states.
- The company specializes in the following:
- Whey and Milk Proteins
- Caseins and Caseinates
- Plant Proteins Dairy and Plant Fats
- Carbohydrates
- Gluten-Free
- Organic
- Kosher Certified
- Halal Certified
- Instantized Non-GMO
- Frozen Desserts
- Ready-to-Mix Beverages
- Ready-to-Drink Beverages, etc.
- The company sells branded and private-label products, depending on the client's requests. Milk Specialties claims that its R&D can develop custom-made food based on the exact hydrolysis levels that a company requires.
- Milk Specialties Global is headquartered in Minnesota.
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I'm Kiani from Inside.com, and this past week, we asked our Inside Venture Capital community, "How do you decide which startups to invest in?" Here are some highlighted responses we received: - Gautam Madaan (p/gautam | LinkedIn), Engineering Manager at Twilio Inc., has invested in startups by considering financials, user traction, his understanding of the market and business, and the founder and C-team. He continues, writing, "Management teams' relevant experience is an important factor."
- Dane H. Madsen (p/dane_madsen | LinkedIn), a Senior Consultant, simply answered, "I have to like the founder, and I have to believe it is important tech."
Want your question featured? Ask a question! Join the conversations at Inside.com, and we may shout out your name and business or contact you for more! ⭐️
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Quick Hits - Jamf Now is helping businesses set up and secure Apple devices with no IT experience necessary. Manage up to 3 devices for free..*
- Houston-based Marathon Oil Corporation has acquired Ensign Natural Resources's assets in a $3B all-cash deal.
- Flora Growth, a cannabis cultivation company based in Florida, has acquired Germany-based pharmaceutical company Franchise Global Health for an undisclosed amount. The company now gains access to over 1,200 pharmacies in the European Union.
- Crypto lending firm Nexo has stated that its acquisition negotiations with Vauld have regressed and are likely to fail, although the two sides are still continuing to negotiate at the moment. The latter is one of the many cryptocurrency companies that has been caught on the wrong side of an economic downturn and a liquidity crisis.
- Real estate has outperformed the S&P500 (20+ years). Arrived, a Bezos-backed company, finally lets everyone take advantage of it.*
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- January 10 - Inside Startups Coffee Break (Register Here)
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- January 31 - Growth Summit 2023 (Register Here)
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 |  | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. |   | | 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. | |
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