📍2022 has been a year with two halves. In H1 investments continued at an even faster pace than in 2021, but in H2 slowed down radically. In the end, though, the total amount that went into startups was still a lot higher than in 2019 or 2020. But the sentiment has definitely changed. Over 80% of founders have said that fundraising has now gone harder than in the year before. Fundraising cycles are longer, investors are taking more time to decide and there are a lot more bridge rounds (also for later stage companies, where new rounds and IPO’s have almost completely dried up)
📍Median of a VC Fund deployment time is definitely expected go back up in a tougher macro environment, but it hasn't shown in statistics yet (currently the median VC raises a new fund every 2.4 years). Even as there are record-breaking levels of dry powder for venture funds, a 1 year increase to the median fund deployment time would mean that 50% less capital will be available for startups at any given time.
📍In 2021, over 90% of investors said that the funding environment got more competitive. In 2022, only about a third felt that way. At the same time, the amount of investors investing in startups remained quite high (over 3000 different institutional investors - VC’s, family offices, etc)
📍CEE was singled out as a region where founders have been much more capital efficient than elsewhere. "CEE's unicorns on the whole raise far less than their regional counterparts - other regions typically raise close to twice the amount CEE unicorn founders raise to build their companies. CEE unicorn founders have been able to do much more with far less."
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