Athird-quarter downturn in venture capital (VC) dollars raised in the United States, particularly in later-stage deals and from nontraditional investors like asset managers, is the first evidence of distress in the VC ecosystem.
The value of VC deals for the first three quarters of 2022 was still historically high at $194.9 billion, according to the Pitchbook-NVCA Venture Monitor, from Pitchbook and the National Venture Capital Association. (See chart.) But last quarter saw a dip to $43 billion invested from $62.3 billion in the second quarter. That’s a nine-quarter low, according to Pitchbook-NVCA. That cemented “a tone of investor hesitancy and increased focus on business fundamentals amid the global economic downturn,” according to the report accompanying the data.