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Pressure continues to mount on VC
There is no denying the obvious: Venture capital has gone through a rough couple of months. Just when a difficult exit environment seemed like it couldn’t get worse, the sudden failure of Silicon Valley Bank further rattled investors’ confidence. Deal activity dropped in all stages and sectors during the first quarter of 2023, and the fundraising momentum carried from 2021 has evaporated.
But is the outlook really all that pessimistic?
The Q1 2023 PitchBook-NVCA Venture Monitor, sponsored by Insperity, J.P. Morgan, and Dentons, tells the complete story behind the data. Spoiler alert: The outlook isn’t all doom and gloom.
Key takeaways include:
The estimated deal count for Q1 2023 remains above 2020’s quarterly figures, despite a drop from Q4 2022.
Fundraising’s momentum has all but come to a halt, with only $11.7 billion closed across 99 funds.
Late-stage deal value has plummeted to a 21-quarter low, hitting only $11.6 billion.
Venture-growth deal value ticked upward in Q1 2023, influenced heavily by Stripe’s $6.5 billion raise. Deal count in the growth stage hit the lowest it has been since Q3 2020.
Table of contents
Executive summary
3
NVCA policy highlights
4
Overview
5
Angel and seed
9
Early-stage VC
12
Late-stage VC
15
Venture growth
17
A word from Insperity
19
Regional spotlight
21
A word from J.P. Morgan
22
Deals by sector
24
Venture debt
29
A word from Dentons
31
Female founders
33
Nontraditional investors
35
Exits
39
Fundraising
42
Methodology
45
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