May 25, 2022

I can’t stop, won’t stop.

Here’s what early data says about the global venture capital market in the first quarter of 2022. New data released by Crunchbase Newsone This morning paints a picture of a market slowing down but barely stopping.

For comparison, the data set shows that the global enterprise market in the first quarter of 2022 was actually larger in dollar terms than last year. However, compared to the fourth quarter of 2021, there was a decrease – the first record value for enterprises in several quarters.

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The Exchange and gaming-updates+ will be exploring the global venture capital market more broadly from different angles in the coming days. Data from the usual suspects — Crunchbase, Pitchbook, CB Insights, corporate associations, and startup service banks — will add to the current partial picture of the state of the world.

The decline in venture capital investment in the first quarter is not surprising, even if the decline is modest and occurs only on a quarterly basis. The fall in the value of technology stocks since the last months of 2021 has soured the attitude of private and public investors towards the value of technology companies. What was once the hottest region in the world has cooled somewhat, leading to an expected slowdown in corporate activity.

The stakes are high, mind. If the venture capital market continues to slow in the second quarter, the number of startups seeking capital in the market that disagree with their previous estimates could increase dramatically. And if that happens, the excitement of 2021 could turn into the hangover of 2022.

Let’s look at the early and late stage activity data and what’s left of the exit market. We then examine how the data met or fell short of our expectations based on interviews and news events in the first quarter.

Our old enemy — gaps in venture capital data — could play a role in the results. So, at the end of our work today, we will ask ourselves if we expect the second quarter to be even more conservative than the picture we are beginning to paint for venture capital activity in the first quarter.

Where is business slowing down the fastest?

As a rule, when comparing the performance of venture capital, we focus more on annual results than on the results of consecutive quarters. But according to venture capitalists in 2021, it’s actually more accurate to compare time periods. Why? Because so much has changed in the venture capital and startup world last year, there are slightly more apples than a year ago: oranges compared to consecutive quarters.

But for the sake of completeness, we do both. According to Crunchbase News, the data looks like this:

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