Global funding for start-ups declined significantly in Q1
Every funding stage during the quarter declined between 44 and 54 percent year-over-year.
Q1 of 2023 was not a stellar one for venture capital investments.
According to data from Crunchbase, global funding in the quarter reached $76 billion – marking a 53 percent decline year over year from $162 billion in the first quarter of 2022. That’s even including a reported $10 billion investment into OpenAI – largely from Microsoft — and a $6.5 billion round for payments giant Stripe.
Without those two large deals, Crunchbase News reports that Q1 venture funding would have been down even more dramatically, closer to $60 billion.
Gené Teare writes in this article that “every funding stage last quarter was down 44 percent to 54 percent year-over-year (YoY), a clear signal that the slowdown is not confined to late-stage funding. Investors across each stage scaled back as they took time to assess new investment opportunities while guiding existing portfolio companies.”
In the first quarter of 2023, seed funding totaled $6.9 billion, down 44 percent YoY – a signal that even at the earliest funding stages, investors are pulling back.
Early-stage funding totaled $25.6 billion in Q1, down 54 percent YoY.
Late-stage funding totaled $43 billion, a dramatic fall from $93 billion in Q1 2022, but up from $34 billion in Q4.
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