In February 2023, $18B of venture funding was deployed in global startups, marking the first time since February 2020 when the totals dipped below the $20B mark, per Crunchbase. Funding deployment in February dropped 63% YoY and 43% MoM. Late-stage startups saw the most reduction in financing, with funding falling 73% YoY.
- Funding deployed into early-stage startups dropped 52% YoY.
- Crunchbase expects that Series B, C, and D-stage firms will struggle to raise follow-on funding in the current environment.
- Chamath Palihapitiya's VC firm Social Capital has reduced late-stage financings due to a lack of opportunities.
- Sequoia Capital backed out of portfolio company Citizen's latest funding round that is expected to dilute existing investors' stake by a ratio of 10 to 1.
- Despite the drop in funding, VCs such as Bain Capital and SignalFire were able to close funds worth $1.9B and $900M, respectively.
- Global startups raked in $48.8B in venture funding in February 2022.
