Latest Venture Monitor report shows sputtering venture capital environment
"Just when a difficult exit environment seemed like it couldn’t get worse, the sudden failure of Silicon Valley Bank further rattled investors’ confidence," the report notes.
The Q1 edition of the Venture Monitor from PitchBook and the National Venture Capital Association examines the rough couple of months that venture capital has experienced.
“Just when a difficult exit environment seemed like it couldn’t get worse, the sudden failure of Silicon Valley Bank further rattled investors’ confidence,” the report notes. “Deal activity dropped in all stages and sectors during the first quarter of 2023, and the fundraising momentum carried from 2021 has evaporated.”
The Q1 edition spotlights four trends.
- The estimated deal count for Q1 2023 remains above 2020’s quarterly figures, despite a drop from Q4 2022.
- Fundraising’s momentum has all but come to a halt, with only $11.7 billion closed across 99 funds.
- Late-stage deal value has plummeted to a 21-quarter low, hitting only $11.6 billion.
- Venture-growth deal value ticked upward in Q1 2023, influenced heavily by Stripe’s $6.5 billion raise. Deal count in the growth stage hit the lowest it has been since Q3 2020.
The report can be downloaded at this link.
