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April 09, 2023 | Tom Ballard

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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