Growth. Loss. Small fish. Big fish.
Investment and interest in global technology is undoubtedly growing, but a recent Dealroom report questions whether this will continue to be year-on-year.
Some figures soar whilst others dramatically fall, with varied observations across the vast tech world. Based on Dealroom founder Yoram Wijngaarde’s ‘State of Global Tech & VC funding in 2022’ presentation at TNW 2022, the report explores the state of global tech and VC funding so far. We select the key points as companies battle their way through turbulent public markets and economies.
- Nasdaq down 30% year to date – wipes $5.5 trillion in value
- Tech continues to outperform the overall economy, including non-tech industries, sometimes by doubling ROI
- Tech stocks are big, with the report listing Cazoo, Babylon and Coincase as the biggest players with some of the largest share prices
- VC activity is slowing down, yet remains high compared to pre- and early stages of the pandemic. 2021 results show big injections of capital, continuing into 2022 (figure 1)
- By June 2022, investment was already above the full 2020 year, reaching nearly $75bn in total investment across startups, breakouts and scaleups
- Despite us spotlighting unicorns from the ProcureTech100, Dealroom states that unicorn creation is slowing down and back to pre-pandemic levels
- VCs in EMEA raised $24bn in the first half of 2022, just as much as 2020 (figure 2)
- The pond continues to fill with many big tech fish, including Apple, Microsoft, Alphabet, Amazon and Saudi Aramco in 2021 and 2022 (figure 3)
- In 2013, Enterprise Spend on Cloud and SaaS was $43bn. 9 years later, 2022 enterprise spending on Cloud and SaaS is nearly 9x more at $374bn! The biggest wave of Enterprise Cloud/SaaS adoption is happening now
Tech continues to improve rapidly and is entering a ‘futuristic’ age, made up of technologies like quantum computing, big data, space tech and blockchain, transforming the way we work and operate. Meanwhile, start-ups are ‘directly addressing some of the planet’s biggest challenges’, with sustainability being a key focus as companies continue to adapt their strategic initiatives.