Fundraising by VC firms has hit a nine-year low, according to a new report.
VC fundraising dropped 65% YoY in Q4 2022.
- Venture Capital firms raised $20.6B in funding in Q4 2022.
- The figure is the lowest since 2013 and marks the largest disparity with the level of funding in the preceding three months since 2009.
- Limited partners invested in 226 venture-capital funds in Q4 2022, the fewest for that time period since 2012.
- LPs backed 620 funds in the last three months of 2021, showing a quick reversal in fortunes for VCs and startups.
- Factors such as inflation, extended effects of the pandemic, and overall market instability are all considered to have caused hesitation among investors and a lack of funding for both startups and, now, VCs.
