A rollercoaster year of tech funding: A review of 2022 Q3

A rollercoaster year of tech funding: A review of 2022 Q3

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Over the last year, many digital solutions have seen an influx in funding and the creation of unicorns, although recent reports and research show it is declining.

But for how long will this continue?

CB Insights’ Q3 2022 State of Venture Report reveals the trends emerging from tech funding throughout the year, illustrating the highs and lows of investment in SaaS.

Key tech funding findings for Q3
  • 2022 – total tech funding has declined quarter-on-quarter. Q3 recorded $74.5bn investment, which is a 9-quarter low
  • The majority of funding across the world dropped
    • 36% down for European startups
    • 32% less for US
    • 33% less for Asia
  • Q3’22 saw the birth of only 25 unicorns globally, a 71% drop QoQ,
  • $10.7bn funding in silicon-valley startups; the lowest since Q4 2019

There have been similar trends stated in recent findings, such as the 2022 State of AI report, where investment in SaaS startups and scaleups is down 33% from last year, expecting to reach $41.5 billion by the end of this year. 

There have also been findings showing the growth in tech funding, specifically in EMEA, where a Dealroom and TNW report highlighted how research saw it reach as high as $24 billion mid-way through this year. 

Are VCs keeping their ‘dry powder’? 

A lot can happen within the space of a year. A report by Notion VC earlier this year mentioned how VC funding was expected to surpass $500bn in 2021 – it was close, but not quite. This poses the question as to if, or perhaps when, VC funding will go the other way again and boom once more, overcoming the negative impact of market and economic uncertainty. 

What trends will tech funding see in the next quarter?

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