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Infographic – Q2 Venture Funds Decline Continues

Chart: Venture funding Q1 2022

Click on image for full-size view (Crunchbase News)

9 July 2022. Venture capital funds for North American technology start-ups continued their fall in the second quarter, with later-stage rounds showing the greatest drop. Data compiled by technology research company Crunchbase, and published by Crunchbase News on Thursday, show total venture funding declined by 28 percent from the first quarter of 2022, and by 25 percent compared to the second quarter of 2021.

Venture capital financing for new tech companies in North America totaled $61.7 billion from April through June of 2022, falling from $85.6 billion in the first quarter of the year. In addition, the number of venture deals also declined in the second quarter across all venture rounds. Late-stage venture and growth rounds, series C and later, experienced the largest declines from Q1, falling nearly 35 percent to $35 billion. The number of later-stage venture deals also fell from 490 in the first quarter to 374 in Q2.

Early-stage venture rounds, series A and B, and seed or angel funds for tech start-ups in North America also declined in Q2, but at a slower rate. Total investments in the first two venture rounds declined by 15 percent in the second quarter to $23.2 billion, while the number of deals declined from 1,193 to 1,023 in Q2. Total seed or angel round funding dropped by 30 percent, from $5 billion in Q1 to $3.5 billion in Q2, with the number of deals falling from 1,932 to 1,331. Crunchbase News notes, however, that total investments of $3.5 billion for seed-angel rounds in Q2 still exceeds the $3.4 billion recorded in the third quarter of 2021.

Crunchbase compiled the data for its report from its database of companies, venture rounds, investors, and funds. Investment totals are expressed in U.S. dollars, as of 5 July 2022.

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