1. Global Trends:
• Global retail tech funding fell 43% quarter-over-quarter (QoQ) to $13.2 billion in Q2’22.
• The number of deals decreased by 21% to 710, marking the biggest decline across major sectors covered by CB Insights.
2. Regional Funding Insights:
• The US saw retail tech funding nearly halve QoQ, dropping 46% to $4.8 billion.
• Asia led global funding and deals, followed closely by the US and Europe.
• Funding in all regions except Australia declined QoQ.
3. Mega-rounds:
• Mega-rounds ($100M+ deals) accounted for the lowest share of funding in two years, representing just 51% of retail tech dollars invested in Q2’22.
• The number of mega-round deals fell to 32 from 61 in Q1’22.
4. Valuation and Deal Trends:
• Median late-stage deal size dropped to $82 million, down 18% from 2021.
• Median funding for mid- and early-stage deals increased year-to-date (YTD) by 12% and 13%, respectively.
• The median time between Series A and Series B rounds increased to 18 months YTD, indicating growing investor caution.
5. Unicorns and Valuations:
• Five new US retail tech unicorns emerged in Q2’22, spanning sectors such as e-commerce enablement, online marketplaces, cashierless checkout, and supply chain & logistics tech.
6. M&A and Exit Trends:
• Mergers & acquisitions (M&A) deals totaled 160 in Q2’22, a 23% decline from the peak in Q4’21.
• Public exits (IPOs and SPACs) were limited, with only seven public debuts in Q2’22.
7. Sector-specific Insights:
• E-commerce funding saw the largest decrease within retail tech, falling 60% QoQ to $4.3 billion.
• Supply chain & logistics tech funding declined by 52% QoQ to $4.5 billion.
8. Investor Activity:
• The top 10 investors funded 29% fewer retail tech companies in Q2’22, with Tiger Global Management leading the field with 15 companies.