Unicorn births have dropped, exits are unavailable and nine digit rounds are absorbing water
the first quarter of 2022 brought a historically huge investment sum for global startups, with the three-month period surpassing every quarter in 2018, 2019 and 2020, according to data from CB Insights.
But despite Q1 2022 posting historically high results, venture capital investment slowed from Q4 2021 levels. And late-stage startups may be the ones under the most fundraising pressure. , data shows.
Through the lens of the pace of unicorn making, how often we see nine-figure rounds, and more generally the size of late-stage deals, we can see that the most mature startups — or at least the startups priced as if they were among the most mature technological newcomers – they see the market shift.
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This is not a prediction of doom, ghost. There’s nothing we can see in market data that indicates the startup fundraising market is collapsing; indeed, there’s a lot of power to be found in select markets and regions, something Marketingwithanoy+ will explore next week.
But for the huge cohort of startups worth $1 billion or more, new market conditions could force tough decisions in the coming quarters. And if Q1 trends continue, we could see pressure on late-stage startups increasing. What is a headache today can become a migraine in a short time. Let’s examine the data.
How fast is the late-stage startup fundraising market cooling?
To understand how the late-stage market is slowing, let’s observe trends in data we tracked during the venture capital bonanza in 2021. From the download of CB Insights global venture capital data for the first quarter of 2022, the following stood out as key stats in motion: