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Infographic – Mixed Signals on 2022 Venture Funding

Chart: Venture funding by quarter through 2022

Click on image for full-size view (Crunchbase)

7 Jan. 2022. A first look at venture funding in 2022 shows a sharp drop total funds invested worldwide from 2021, yet still historically high numbers for the year. However, the technology market research company Crunchbase also notes this week that total funding amounts declined in each quarter of 2022, suggesting a difficult year ahead for venture finance.

Data compiled by Crunchbase show global venture funding in 2022 totaled some $445 billion, a decline of 35 percent from the $681 billion raised in 2021. Yet, as Crunchbase indicates, 2021 appears to be an outlier in venture finance. The $445.2 billion invested worldwide in 2022 is still 30 percent more than the $341.7 million raised in 2020, a record annual total at the time, and more than the totals raised in 2019 and 2018.

The annual investment totals, however, mask a more ominous underlying trend; see the above chart. Total venture funds invested fell each quarter in 2022, from $163.1 billion in Q1 to $77.2 billion in Q4, which suggests continued declines into 2023 unless or until the underlying conditions change.

For companies in their earliest stages, the global funding totals are less gloomy than more established start-ups. Angel and seed funding in 2022 fell by 35 percent compared to 2021, while venture funding in later rounds declined by 54 to 64 percent compared to the previous year.

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