Fresh off the press! Check out our newly released Q2 2023 PitchBook-NVCA Venture Monitor report, created in partnership with Insperity, J.P. Morgan, and Dentons, with data and analysis on quarterly U.S. VC dealmaking, exit, and fundraising activity.
What’s new:
The data reveals that the collapse of Silicon Valley Bank, rising interest rates, deepening geopolitical tensions, and increased interest around federal investment in frontier technologies, have had a profound impact on the venture ecosystem in the first half of the year.
Fundraising Activity:
In Q2, investors put $39.8 billion into U.S. startups, 48% less than in the second quarter of 2022.
However, that figure looks better when compared with long-term trends as U.S. startups are on track to raise about the same amount as they did in 2020.
Investment Activity:
Deal counts have leveled off, with just over 4,000 deals accounted for in Q2, remaining above pre-2021 figures.
The early stage had the fourth-most-active quarter ever in terms of deal count, and venture growth also saw a deal count increase.
Exit Activity:
Through the first half of the year, we observed just $12.0 billion in exit value generated from an estimated 588 exit events.
Despite the drab exit activity YTD, Cava’s IPO has captured the attention of many, who hope that its success will pioneer a resurgence of the IPO market. Plus, several generative AI startups have also been acquired in recent weeks.
Why it matters:
With the tightening market, there is an opportunity for the federal government to catalyze both capital formation and technology commercialization across the country, underscoring the importance of NVCA’s policy engagement in Washington right now.
Moreover, specific sectors such as life sciences and artificial intelligence hold countless opportunities in the most investor-friendly market environment in more than a decade.
Presenting the Q2 2023 Venture Monitor