Crunchbase News reports steep decline in start-up funding in Q3

Crunchbase News reports that North American start-up investment for the third quarter totaled less than half its year-ago levels, driven by an even steeper drop in late stage financing.

Overall, investors put $39.7 billion to work in seed through growth stage deals in Q3, down 53 percent year-over-year (YoY) and down 37 percent compared to Q2. The YoY decline was most pronounced at late stage, which was down 63 percent in the just-ended quarter.

There were two notable conclusions:

  • The scaling down is occurring after extremely tall heights, as 2021 surpassed prior funding records significantly. “So, while an over 50 percent year-over-year funding decline may make for an alarming headline, we’re still close to where we were a couple years ago. And at the time, that was considered a pretty good period for start-up funding,” Joanna Glasner writes.
  • While late stage is faring worse than early stage and seed, there is still a large amount of dry powder in the coffers of venture investors. “It’s likely they’ll begin spending more profusely once more consensus emerges around valuations and exit conditions improve,” Glasner wrote.

Stay connected with us on Twitter and LinkedIn. Article ideas and other suggestions should be sent to Include the name and contact information (phone and email) for follow-up.