Is startup funding leveling out in VC world?
Asia Q3 funding trend: YoY ⬇️, but QoQ ⬆️8% (Q3 vs Q2 2023)
As late-stage and growth funding ⬆️, but seed and early stage is still horrible
Deal flow: 30% YoY ⬇️ , 17% ⬇️ QoQ, meaning a focus on a few startups
Why late-stage and growth rounds are getting popular?
More stable
Stable customers
Stable cash-flows (depends)
Already establish product market fit
Larger balance sheet to sustain the bear market
In what magnitude?
$ :YoY ⬆️**+51%, QoQ ⬆️+25%** = 14.6 billion
#: YoY ⬇️**-21%**, QoQ “-” even = ~157
How bad was Early stage & Seed rounds startup funding though?
Early Stage:
$ :YoY ⬇️**-15%, QoQ ⬇️-51%** = $6.2 billion
#: YoY ⬇️**-6%, QoQ ⬇️-17%** = ~538
Seed Stage:
$ :YoY ⬇️**-8%, QoQ ⬇️-29%** = $1.5 billion
#: YoY ⬇️**-25%, QoQ ⬇️-38%** = ~823
What does it mean in conclusion?
Q2 is actually fairly similar, most of the funding stats are down YoY
👍Funding is returning slowly, but at least a good head start!
At least the funding is getting a slow improvement on late stage which is very positive, as we are now in a high interest rate market where a lot of funds tend to either put their money in bank for deposit interest or not invest as there is no guarantee to beat return of interest now!
👎Political tensions (Israel)
Affecting cybersecurity sector
👎Political tensions (US & China)
US investors & funds are out of China’s startup ecosystem, with more and more restriction
References: