# Is startup funding leveling out?

By [零靈 0xSpiritZero](https://paragraph.com/@0xspiritzero) · 2024-01-06

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**Is startup funding leveling out in VC world?**

Asia Q3 funding trend: YoY ⬇️, but QoQ ⬆️8% (Q3 vs Q2 2023)

![](https://storage.googleapis.com/papyrus_images/69530fe7f245f9114f99b17d543cc5e8a2a73e0c15eb8c44d3259fe23aec25e1.png)

*   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
        

![Crunchbase Data](https://storage.googleapis.com/papyrus_images/7ab9bcdd019fa46dd5eaa334ea36083daf368552d8cf9f47b2129eac46757fa4.png)

Crunchbase Data

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
    

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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
    

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**_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!
        

![Credit: vecteezy](https://storage.googleapis.com/papyrus_images/9fe882835bbb1c89210b167d7a72f21765471ceef36f8967f51a8c93edce02fc.png)

Credit: vecteezy

*   **👎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
        

![Credit: Adobe Stock](https://storage.googleapis.com/papyrus_images/3e6a3ce41c5753feb760d10991b3899a8101d3f05af37f2acee24ff196851386.png)

Credit: Adobe Stock

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References:

[https://news.crunchbase.com/venture/asia-vc-startup-funding-q3-2023-data/?utm\_source=cb\_daily&utm\_medium=email&utm\_campaign=20231011&utm\_content=intro&utm\_term=content&utm\_source=cb\_daily&utm\_medium=email&utm\_campaign=20230703](https://news.crunchbase.com/venture/asia-vc-startup-funding-q3-2023-data/?utm_source=cb_daily&utm_medium=email&utm_campaign=20231011&utm_content=intro&utm_term=content&utm_source=cb_daily&utm_medium=email&utm_campaign=20230703)

[https://news.crunchbase.com/venture/china-israel-funding-rebound-q3-2023/?utm\_source=cb\_daily&utm\_medium=email&utm\_campaign=20231013&utm\_content=intro&utm\_term=content&utm\_source=cb\_daily&utm\_medium=email&utm\_campaign=20230703](https://news.crunchbase.com/venture/china-israel-funding-rebound-q3-2023/?utm_source=cb_daily&utm_medium=email&utm_campaign=20231013&utm_content=intro&utm_term=content&utm_source=cb_daily&utm_medium=email&utm_campaign=20230703)

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*Originally published on [零靈 0xSpiritZero](https://paragraph.com/@0xspiritzero/is-startup-funding-leveling-out)*