Supply and demand: We updated our VC Dealmaking Indicator to include our venture growth stage, while also fine-tuning our model's capital demand to supply ratio. All stages continue to trend toward investor friendliness—at least for VCs still putting capital to work. Check out the new outputs here.
PE in 2023: Our analysts are hosting a live discussion Wednesday to talk about what's on the PE horizon and how dealmakers can navigate a more challenging market. Register here.
Public comps: Our new guides on public company valuations feature trends in recent stock performance, revenue forecasts, and market caps, and what it all could mean for private companies. Download them here: | | | | | |
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| New data reveals the full extent of US VC declines in 2022 | | The narrative around VC last year was about as far from that of 2021 as could be imagined. 2021 was characterized by excess; 2022 by layoffs, falling capital availability, a closed IPO market, and general worry and uncertainty. The US VC market had an incredible run since the global financial crisis, but "growth at all costs" looks to be over. Public markets have quickly shifted away from placing a high premium on revenue growth as the leading performance metric, highlighting how VC-backed companies must shift their strategies from fueling growth at unsustainable levels to building solid business foundations.  | | US VC deal value declined much more than deal count. | Risk, or at least the perceived risk of venture, increased substantially in 2022. That caused many investors to rethink their approach, and the nontraditional firms that boosted top-line deal value trends over the past few years drastically slowed capital deployment into the VC market. Broadly speaking, however, 2022 looked much less menacing than the narrative suggests. Venture investors still deployed $238.3 billion. US-based VC funds raised a record $162.6 billion. Even as deal value declined each quarter, with Q4's figure falling back to pre-pandemic norms, our estimates put deal count for the final period of the year at just under 4,000, which is the most active quarter outside of the past two years. We do believe the VC market will continue cooling. Deal count will likely slow further, and dry powder—no matter the amount—will only help the market as long as firms don't stash it away in hopes of an eventual rebound. 2023, regardless of if or when a recession occurs, will be challenging for the venture market, as companies and investors alike realign their strategies and expectations of what VC truly is. 2021 was an outlier. 2022 was carried by momentum. 2023 may be the fine-tuning of the new market structure. But until we see what 2023 holds, you can access the key underlying datasets from our upcoming PitchBook-NVCA Venture Monitor, which releases on January 12. Click to download the free data and summary PDF. | | | | | | | |
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After two months on the up-and-up, US stock indexes ended December on a down note.
European markets didn't fare much better, though Hong Kong's Hang Seng index rose 5.9%.
Meanwhile, the commercial real estate market has taken a hit due to rising central bank rates and the threat of slowing business activity, and we expect real estate fund returns to continue to correct into the new year as investors hunt for liquidity.
Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt, and commodities markets, tracking returns across a range of indexes and sectors: | | | | | |
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Grid Storage Beyond Lithium
Who will win the battle for grid-scale battery dominance?
Lithium-ion has been far from perfect, but the alternatives—such as redox flow to metal air—also have much to prove.
With the first winter since Russia's invasion of Ukraine threatening Europe's energy security, the interest and investment in new energy technologies have never been higher.
Our latest note dives deep into these alternatives and where VCs are channeling their investment: | | | | | |
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Upcoming events related to our 2023 outlooks: - Jan. 17—From FTX fallout to the rise of climate tech, our emerging tech analysts will discuss our forecast for the coming year, covering areas like crypto, AI, healthcare, and more. Register here.
- Jan. 18—Our EMEA team will examine Europe's private markets performance in 2022 and our expectations for this year, particularly how the PE and VC industries will navigate market uncertainties. Register here.
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Our insights and data featured in the press: - Despite the slowdown, the collective value of unicorns worldwide reached $4.5 trillion as of Dec. 21, up from $3.9 trillion at the end of 2021. [WSJ Pro]
- Agtech and foodtech are facing a funding slump. Limited exit options have led to investor reluctance in backing later-stage rounds. [FT]
- Climate tech funding holds strong, set for 2023 lift. [Axios Pro]
- Leveraged buyouts were funded almost entirely by private credit late in the year, which could be a worrisome trend for Wall Street. [WSJ]
- In 2006, VCs invested $143 million in women's healthcare. That number had grown to $1.9 billion by 2022. [Forbes]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other recent research:
2023 outlooks
Market updates
Thematic research
Industry and technology research
Coming next week (subject to change) - US PE Breakdown
- PitchBook-NVCA Venture Monitor
- PitchBook Benchmarks
- Sustainable and Digital Infrastructure in the Private Markets
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| | Since yesterday, the PitchBook Platform added: | | 345 Deals | 2511 People | 641 Companies | 11 Funds | | | | | | |
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