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Infographic – Sharp Drop in Q3 Venture Funds

Global venture funding Q3 2022

Click on image for full-size view (Crunchbase)

8 Oct. 2022. The first data on venture investing in the third quarter of 2022 are coming in and they paint a bleak picture. Technology industry research company Crunchbase reports total venture investing worldwide dropped to $81 billion in July to September 2022, a decline of $40 billion or one-third (33%) compared to the second quarter of the year. Compared to the third quarter of 2021, the decline is $90 billion or 53 percent.

Venture capital is a prime investment source for new high-growth science and technology companies. Among early-stage venture rounds, a start-up’s first and second rounds often reported on this site, Crunchbase says total investments dropped by 25 percent compared to the second quarter and 39 percent from Q3 of 2021. The only bright spot, if you want to call it that, is angel and seed financing — the earliest equity investment stage for many start-ups — that also declined from Q2 2022, but remained about the same as the third quarter of 2021.

Venture investing in North American companies also declined markedly in the third quarter of 2022. Crunchbase says total venture dollars declined 37 percent from the second quarter in North America, and 53 percent compared to Q3 2021. Angel and seed investments in North America were least affected, declining to $3.3 billion or 18 percent from Q2 2022, and 6 percent from the third quarter of 2021.

Technology intelligence company CB Insights also issued an advance report on third quarter 2022 venture investing worldwide showing similar numbers: a 34 percent decline from the second quarter of the year. The $74.5 billion invested in the third quarter is the lowest quarterly total since the second quarter of 2020, during the depths of the Covid-19 pandemic. CB Insights expects to to issue its full report later this month (registration required).

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