Venture Funding Set To Hit Lowest Level Since 2020

Venture capital-backed startups raised far fewer rounds of funding during the past three months than they did during the more ebullient days of late last year and early this year, according to new data from analytics firm CB Insights. From a report: Deal activity across the globe dropped 23% between the first quarter and second quarter of this year, the firm found, using data for the second quarter through June 23. That's a stark contrast to the previous quarter, where the deal count dropped only 1.4% -- and an indication that the roiling of the crypto and public markets are affecting private companies. Investors are not just writing fewer checks but also smaller ones. The total funding amount going to startups for the current quarter to date dropped 27% compared to the first quarter. Those numbers are likely to change before the second quarter is officially over in a week, but the drop appears to be more severe than the 19% CB Insights had predicted just a month ago. Late-stage companies are getting squeezed particularly hard: Funding in Series D rounds or beyond dropped 43%.

Re:

[ZombieCatInABox]

Found the trumptard.

Good!

[Rosco P. Coltrane]

Less venture funding means less vulture funding, and more serious background research on - and more serious commitment towards those companies that do receiving funding.

In other words, less potential for a bubble to burst a few years from now.

Check printers

[muh_freeze_peach]

The ding bats with private islands full of cash will find some other pit in which to burn their stake.

Ooooooo, two years!!!

[Salton Pepper]

Is anybody else soiling themselves at the thought of a TWO YEAR low in VC capital investment? Definitely time to head for the hills and cannibalism is very much on the table (see what I did there?). /s

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[Bite The Pillow]

2020 was a bit of an anomoly. Would you accept "since the world closed up shop briefly? "

Re:

[Salton Pepper]

Yes, I'd accept that. And also anything else that doesn't imply that two years of subpar VC funding during the height of the pandemic is a prelude to a worldwide financial Armegeddon.

Investment of all kinds is down

[drinkypoo]

But muh job creators

The fed just raised the interest rate specifically to reduce employment.

Get ready for a depression.

That's what Larry Summers said too.

[waspleg]

They're trying to curb demand because their money printer fucked up supply. [fortune.com]

The FED has been wrong every time they've tried to do anything. They're not talking about a "soft landing" anymore...

By any chance...

[devslash0]

Could this have something to do with the cryptoapocalypse?

Re:

[algaeman]

Nope, just actual economics. The stuff based on production, demand, and cold hard cash.

Can't see the number .75% anywhere

[VeryFluffyBunny]

Why haven't they mentioned the rather consequential .75% figure in their reporting?

And nothing of value was lost

[Iamthecheese]

You can control a lot of money without controlling wealth. An enormous amount of GDP consists of money being borrowed (created) and then spent (destroyed) on companies which have no actual real-world value. Companies that have no wealth. You can say a thing is worth its sales price, but it's not true in the important sense that there's a whole separate and smaller economy based on physically existing things. A lot of inflation happens when money flows from the unreal world of balance sheets to chase the rea