In Q1 2023, VC invested $2.4B in U.S.-based Series C stage startups, down 74% YoY compared to $11B invested in the same time last year.
Crunchbase predicts that at this pace, funding for Series C stage firms will be 60% lower at this year's end than the $28B invested in the previous year.
- The five most active investors in the Series C stage, namely SoftBank, Andreessen Horowitz, Tiger Global Management, Insight Partners, and Sequoia Capital, collectively participated in four Series C rounds and did not lead any such rounds in Q1 2023.
- Crunchbase reckons that investors are waiting for valuations to come down even further before commencing their earlier pace of investments.
- Series C rounds will likely pick up pace as startups that secured Series B rounds in 2020 and 2021 will probably try to raise the next round of funding this year.
- Some may have to settle for lower valuations or raise financing at non-favorable terms, per Crunchbase.
