VC valuations data: In case you missed it, our 2022 Annual US VC Valuations Report is your must-read guide to trends in venture deal terms like valuations, deal sizes, dividends, and more. Read it here.
2022 rankings: Which investors were most active last year? Our new Global League Tables break down the top PE & VC firms by region, industry, AUM, deal type, and more, along with rankings for service providers and acquirers. Check them out. | | | | | |
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| US VC fundraising is increasingly concentrating within two markets | | There are wide disparities in the venture data coming out of different US markets. In deal count, yes, but also within deal size medians and averages, sector trends, and company growth. In the Bay Area, for example, the median seed valuation in Q4 was $17.5 million, a record high and a 75% increase over the highest quarterly seed valuation in 2021. In the rest of the US, the median seed valuation in Q4 was $10 million. That's still high relative to historical trends but a far cry from the Bay Area. The Bay Area remains the most active and expensive market for US venture, and likely will for some time, due to the exceptionally high amount of fundraising by VCs headquartered there. And, rather quickly, New York is joining the Bay Area in separating from everywhere else.  | | 73% of 2022 commitments went to Bay Area or NYC firms. | Between the two markets, more than $330 billion in capital was raised by VCs from 2019 to 2022. VCs in the rest of the US raised less than half that total, begging the question: Is venture destined to become siloed into these two markets and everywhere else? One of the market trends accelerated by COVID was the further spread of capital outside of tech hubs. During lockdowns, it was just as easy to invest in a company headquartered across the country as one in the same ZIP code. In fact, the median distance in miles between a company and the lead investor in its seed round grew from 151 miles in 2019 to 401 miles in 2021. When the market quickly turned against startups in 2022, the thought was that investors would return to traditional deployment strategies, pulling capital back toward their headquarters and leaving startups in markets with limited capital resources in a difficult spot for fundraising. If that were the case, then the concentration of capital in the Bay Area and New York would put the leverage firmly back into those markets, potentially stunting the further democratization of VC and reverting to investment trends prior to the pandemic. What we're seeing, however, is Bay Area and New York VCs pushing their investments further into new markets as companies continue to build outside those two hubs. For more data and analysis: check out our research note: Capital Concentration and Its Effect on the VC Ecosystem | | | | | | | |
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How Macro Risks Are Shaping the Outlook for US Private Markets
While public market struggles carried the headlines last year, market pricing told a different story.
We believe rising discount rates, rather than lower growth expectations or higher risk premiums, were responsible for most of the public market's woes in 2022.
But what do these mixed messages mean for the likelihood of a recession?
Our research breaks down recent economic and public market developments that have shaped the outlook for the US private markets and describes the potential roads forward—many of which would lead to a recession: | | | | | |
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After the record amounts of capital deployed in 2021, it seemed that there was nowhere to go but down.
But a handful of sectors belied the trend, among them carbon and emissions tech.
Due to government programs aimed at advancing private investment, as well as the war in Ukraine and companies' pledges to reduce emissions, carbon and emissions tech startups raised $13.8 billion in 2022—holding roughly flat YoY.
Our Carbon & Emissions Tech Report explores VC trends in the vertical and highlights emerging opportunities in areas like ocean carbon capture and biopolymers: | | | | | | 2022 proved difficult for cryptocurrency investors—the implosion of FTX capping a year full of crises.
But amid these headwinds, our new Crypto Report suggests a more complex picture.
Last year still set VC records, with all-time highs for both capital invested and deal count on an annual basis—and investment rose across all stages.
Also, several opportunities are emerging for investors, including real-world asset tokenization and the creation of more providers to stake tokens: | | | | | | Boosting resiliency has been the key focus for the supply chain tech sector since COVID-19 restrictions hobbled the global marketplace.
With disruptions such as Russia's invasion of Ukraine continuing to test improvements to the supply chain, customers are seeking cheaper solutions and even greater flexibility.
Our Supply Chain Tech Report covers all the latest VC trends, as deal activity cools to pre-pandemic levels.
It also highlights emerging opportunities for investors in freight tech and technology for finance and payments: | | | | | |
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Valuations for European venture-backed companies remained relatively unscathed last year, but signs point to a decline on the horizon.
Our 2022 Annual European VC Valuations Report showcases key trends across stages, sectors, and geographies. Highlights include: - In 2022, the median early-stage valuation rose 23.4% year-over-year.
- The median price tag for late-stage startups climbed to €14 million, but growth has begun to slow.
- Aggregate unicorn post-money valuations grew 46.3% YoY.
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| | | Senior tech analyst Robert Le joins CNBC Crypto World. | | |
Our insights and data featured in the press: - Our lead crypto analyst joined Crypto World to discuss the latest trends across the industry. [CNBC]
- Carbon tech investment has defied the venture capital downturn. [Reuters]
- Like other companies that have gathered unique training data at scale, Grammarly may be able to fine-tune relevant large language models with customer data. [Emerging Tech Brew]
- Why seed-stage companies may continue to have more leverage when it comes to negotiating deal terms with VCs. [Fortune]
- VC investment in supply chain tech startups during Q4 increased on a quarterly basis, a bright spot in an otherwise muted year. [Axios Pro]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Venture investment for female-founded companies in 2022 exceeded any year before 2021.
But challenges still need to be addressed as the industry's GP population remains heavily male-dominated.
In an upcoming webinar on March 7, our panel will provide key insights for female-founded and female-led companies across US geographies, highlighting VC funding trends, exit activity, and more:
Register here | | | | | |
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Highlights from our other recent research:
Market updates
Thematic research
Industry & tech research
Coming next week (subject to change) - Global Private Market Fundraising Report
- ETR: Gaming* (Launch Report)
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| | Since yesterday, the PitchBook Platform added: | | 422 Deals | 2189 People | 618 Companies | 15 Funds | | | | | | |
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