1. Global Funding: In Q2 2022, global funding to startups reached $108.5 billion, a 23% drop quarter-over-quarter (QoQ), marking the largest quarterly percentage drop in nearly a decade.
2. Regional Funding Trends:
• US: Funding dropped by 25% QoQ to $52.9 billion, the lowest amount since 2020.
• Asia: Funding also dropped by 25% QoQ to $27.0 billion.
• Europe: Funding saw a smaller decline of 13% QoQ to $22.7 billion, the smallest dip among major regions.
3. Unicorns: The number of new unicorns fell significantly, with 85 new unicorns in Q2 2022 compared to 148 in Q2 2021, marking a 43% year-over-year (YoY) decrease.
4. Mega-Rounds: Mega-round funding (deals worth $100 million or more) decreased by 31% QoQ to $50.5 billion, the lowest level since 2020.
5. Exit Activity: The number of total exits decreased by 16% QoQ to 2,648, with mergers and acquisitions (M&A) deals falling by 16% to a six-quarter low of 2,502. Initial public offerings (IPOs) and special purpose acquisition companies (SPACs) also saw declines.
6. Sector Highlights:
• Retail Tech: Funding dropped 43% QoQ to $13.2 billion, a seven-quarter low.
• Fintech: Funding saw a 33% QoQ decline.
• Digital Health: Funding fell by 32% to $7.1 billion, an eight-quarter low.
7. Geographic Trends:
• Denver: Funding in Denver surged by 111% QoQ, reaching $1.9 billion.
• Africa: African startups raised $1.7 billion in the first half of 2022, more than half of the total raised in all of 2021.
8. Investor Activity: Top investors funded 22% fewer companies QoQ. Tiger Global Management remained the most active investor.
9. Deal Sizes: The median deal size for angel investors increased by 33% from 2021, while other investor categories saw declines.
10. Funding Stages: Early-stage deals continued to account for the majority of deals in 2022 YTD. Asia led in early-, mid-, and late-stage deal share in Q2 2022.