It’s more than a feeling. Venture firms are raising and deploying far less money than in recent years, according to new data from research firm Pitchbook and the National Venture Capital Association.
What you need to know: Overall U.S. deal numbers fell by more than 25% between the first quarter of last year and this year. Year-to-date, he had less than 3,000 closed deals by the end of March, but since 2018, things aren’t that bad until you realize it’s not too late (see chart below).
Late-stage trading values also fell like a rock in Q1. It’s clear from recent headlines that the “mega round” days are over, but Pitchbook and the NVCA. Only 19 late-stage mega rounds occurred in the first quarter of 2023, compared to a staggering 98 in the first quarter of 2022, according to the two.
Naturally, that slowdown, right-sizing, or whatever you prefer to call it, had a ripple effect. Median late-stage pre-money valuation in Q1 fell 16.9% from full-year 2022 figure to $54 million, while average pre-money valuation fell more than $100 million to 159, according to the organization’s findings turned into dollars. a million.
The industry is under pressure on all fronts. According to the latest data, his $11.7 billion was closed across 99 venture capital funds in the first quarter of this year. Capital commitments of $6.2 billion were made across the two new funds. In fact, in his first three months of the year, he had only two venture funds close with more than $1 billion, whereas last year he had 36 funds with his $1 billion-plus commitments. Closed.
VC investee companies are getting stuck in a kind of exit purgatory as they get less and less out of the way for capital commitments. According to NVCA and Pitchbook, exit value closed in the first quarter was just $5.8 billion, which is clearly less than his 1% of total exit value generated in 2021 (it was a record year but it hurts). With the IPO window closed (his only 20 listings in the first quarter), “pressure continues to build within the ecosystem,” says the authors of this latest ‘Venture Monitor’ report. .
Stay tuned for more information. The organization plans to drop more data next week. In the meantime, if you want to check some of these numbers for yourself, you can find them here.
