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August 10, 2022 | Tom Ballard

Some trends positive, others cause concern in mid-year analysis of PitchBook’s 2022 projections

Right before the start of the year, PitchBook analysts summarized their projections for the U.S. venture capital (VC) market in 2022 (see post here). Halfway through the year, trends are beginning to crystallize, and the organization’s latest analyst note updates the scorecard.

According to PitchBook, the key takeaways are:

  • Roughly 1,173 corporate VCs have made a deal in the U.S., which bodes well for the prediction of more than 1,500 for the year;
  • The 10 most active venture ecosystems are on pace to hit the projection of more than 400 deals each; and
  • Macroeconomic forces have undercut PitchBook’s forecast of a year-over-year increase in public listings by VC-backed companies.

Regarding the first two bullets, Cameron Stanfill, PitchBook Senior Analyst, wrote, “It’s important that we highlight these positives to avoid the extreme panic narrative that is all too easy to come by, but there are some cracks starting to form from the pressure of a cycle shift.”

In terms of the nearly six-month drought in new venture capital-backed initial public offerings, he wrote, “If this continues for the rest of the year, the lack of liquidity coming back into the VC ecosystem from the large exits via public markets could have a long-term detrimental effect on fund returns – and therefore the amount of new capital flowing to the strategy.”

The updated report can be downloaded at this link.

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