What the numbers say: Average funding rounds sizes have contracted since the latter half of 2022, especially for Series C and beyond startups, per Crunchbase. In Q1 2023, Series C rounds averaged $59M, down from the peak of $82M in 2021. The decline has been gradual in seed through Series B rounds, which have kept their averages above 2020 levels, while Series C rounds have fallen below. Relevance: Seed stage rounds witnessed the lowest dip in average values, contracting by just $0.1M from the peak value of $3.7M in 2022 to $3.7M in Q1 2023. Average Series A deal values dropped slightly from the peak of $19.1M in 2022 to $18.7M in Q1 2023. Average and median round sizes in Q1 2023 for Series B rounds were $28M and $40M, respectively. 
What happened: In 2021, seed to Series B stage startups saw an increase between 25% and 59% YoY. Due to the changing macroeconomic landscape and the resulting venture funding retrenchment that started in the latter half of 2022, round sizes started contracting as investors exercised caution with their capital deployment. As a result, valuations of startups — which were inflated in 2021 — started dropping in 2022. Pitchbook's data shows that average pre-money valuations of late-stage startups halved to $159.1M in Q1 2023 from its peak of $351.1M in 2021.
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Greycroft secured capital commitments worth $980M for two funds: early-stage-focused Greycroft Partners VII, and growth-stage-focused Greycroft Growth IV. The firm intends to invest in consumer and enterprise startups. More: - Individual check sizes will range from $1M for pre-seed rounds to over $50M for growth-stage deals.
- The New York- and Los Angeles-based VC firm has raised over $3B from investors to date.
- Co-founder Dana Settle said that the firm's "bicoastal foundation in Los Angeles and New York has given us unique access and insights to the technological advancements that drive emerging themes and reshape industries at the intersection of culture and business."
- The firm has backed over 250 startups to date, most notably Acorns, Arthur AI, Fetch, Flutterwave, Scopely, Semrush, and Yeahka.
- Greycroft's successful exits include Scopely, Bumble, Axios, The RealReal, and Segment.
- Settle remained optimistic about the VC industry despite the gloomy current investment climate, adding that it is "an incredible cycle" to invest in.
- The firm recently hired former Carlyle Group executive Kevin Gasque as chief financial officer and chief operations officer.
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Former Salesforce Co-CEO Keith Block is targeting a $400M debut fund for his newly established VC firm Smith Point Capital. The firm has reportedly already held a first close of the fund. Smith Point intends to back enterprise software startups, especially in the growth stages. More: - The firm expects to deploy 75% of the fund's capital into startups that have demonstrated between $50M to $250M in annual recurring revenue (ARR).
- Block reckons, "There has never been a better time to invest in software than there is right now," as valuations have dropped.
- ServiceNow is the anchor investor in the fund and will also serve as a strategic partner.
- Other fund backers include The Hillman Company, Solamere Capital, Carnegie Mellon, and David A. Tepper.
- In addition to the VC division, the firm is launching Smith Point Precision Advisory Network, which aims to bring industry leaders to guide portfolio startups.
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Cambridge, Massachusetts-based biotech firm Orbital Therapeutics closed its ARCH Venture Partners-led Series A round at $270M. Incoming funds will enable the firm to expand the scope of its RNA-based medicines, advance research, accelerate programs, and scale the firm. The firm is currently working on next-generation vaccines, immunomodulation, and protein replacement. More: - Orbital launched seven months ago with an undisclosed investment from ARCH and Andreessen Horowitz.
- A16z's Bio + Health division participated in the current round along with another previous backer Newpath Ventures.
- New investors joining the funding round include Abu Dhabi Growth Fund, Invus, Casdin Capital, Moore Strategic Ventures, and others.
- The firm strengthened its C-suite team with two new hires: Niru Subramanian as chief operating officer and Jonathan Piazza as chief financial officer.
- Since the last fundraising, the firm acquired an undisclosed startup and inked a strategic partnership with Beam Therapeutics.
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Nevada-based green hydrogen modular electrolyzer system startup Ohmium International secured $250M in Series C funding. The firm intends to use the proceeds to expand green hydrogen annual production capacity at its Indian plant to 2 GW and accelerate R&D efforts. More: - Ohmium is currently developing eight projects across the U.S., Europe, Asia, and the Middle East.
- The current round is five times larger than its previous $45M Series B round from a year ago.
- TPG's Rise Climate Fund led the funding round with participation from new investor Hanover Technology Investment Management.
- Existing backers Energy Transition Ventures and Fenice Investment Group joined the fundraiser.
Zoom out: - Lead investor private equity firm TPG secured $3.4B in capital commitments for its second Tech Adjacencies fund today.
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Seattle, Washington-based VC firm Capria secured $100M for its second fund. The firm aims to invest in startups across the "Global South" region, namely India, Southeast Asia, Latin America, the Middle East, and Africa. Capria plans to invest in 20 to 25 tech startups, with individual first check sizes averaging between $2M to $3M. More: - The firm will also back global startups that have their primary markets in the Global South.
- Gates Ventures and OIP Investment Trust invested in the fund along with several foundations and family offices.
- Capria closed its debut fund at $57M in Jun. 2020.
- The firm has since backed fintech startup Kueski, agritech firm Agrofy, mobility startup MAX, and payments fintech firm Paymob.
Zoom out: - Over the next three years, Capria expects the Global South economy to contribute 70% of the overall GDP growth.
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- Former general partner at GV Jessica Verrilli and former Slack executive April Underwood are looking to raise $75M for their new venture firm Adverb Ventures' inaugural fund.
- U.S.-based early-stage VC firm Fuel Venture Capital is set to conduct a roadshow in Asia next week to solicit capital from institutional investors towards its latest Flagship Fund II. The firm is looking to raise $300M for the fund via transferrable notes called The Fuel VC Note.
- KYC compliance and ID verification firm Smile Identity acquired Inclusive Innovations to expand its footprint across Africa. Sources estimate the cash-and-stock transaction's value at "not more than $20M."
- LabCentral Ignite partnered with Bioscience & Investor Inclusion Group to establish IgniteVC, an initiative that aims to provide startups and VC firms with resources to advance their diversity, equity, and inclusion (DEI) goals.
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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 and 1972 Fords. | |
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