June 3, 2022
According to CB Insights’ ‘State of Venture’ report, worldwide venture investment for startups is expected to drop 19% in Q2 2022 compared to the previous quarter, due to tightened liquidity and a global crash in technology equities. According to the research, the number of agreements will be 6,904, down 22% from the previous quarter.
Asian companies, who have raised $12.7 billion to date, will witness the largest reduction in financing, with funding expected to drop 31% this quarter. Startups in the United States are predicted to receive less funding, with a total of $61 billion expected. This is a 13% decrease from the previous quarter and the lowest level since 2020. According to the report, investment for European startups will shrink by 16 percent.
For the first time since 2020, there will be fewer than 100 unicorns minted in a quarter. In Q2, only 62 startups are anticipated to become unicorns. The United States and Asia are likely to be the hardest hit, with a drop of 43 percent and 67 percent in new unicorns, respectively.
As public markets remain volatile, initial public offerings are also drying up.
According to the research, only 92 firms are likely to go public in the third quarter, down 34% from the previous quarter and marking a nine-year low.
Source: The Economic Times
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