New York City-based seed-stage startups nabbed $447M in venture funding in Q4 2022, down 48% from Q3 2022's totals of $860M.
Despite initially showing resilience, seed-stage investments are now beginning to be impacted by the venture funding pullback. The pullback had the greatest impact on the Web3, cryptocurrency, D2C, and healthcare tech sectors.
- Enterprise IT startups in NYC have seen the least impact of the pullback so far.
- Demand for DevOps and cybersecurity software remains high.
- FirstMark Capital's partner Matt Turn expects funding for enterprise tech startups to remain low, adding that "many will fail or get acquired."
- The number of seed-stage deals completed dropped 30% from 185 in Q3 to 129 in Q4.
- Despite witnessing a drop in venture funding in Q4, capital deployment still remained above 2020's Q4 level.
