This is the biggest quarterly percentage drop in deals (and the second biggest drop in funding) in a decade, the report said. Despite the sharp dive, funding and deal numbers remained above 2020 levels.
The US removed nearly half of all funding to $52.9 billion, a 25% drop from the previous quarter and the lowest in any quarter since 2020.
Globally, the number of deals fell 15% on a sequential basis. The number of M&A deals also fell 16% to the lowest in six quarters.
Only 85 unicorns were mined in Q2, down 43% from the previous quarter.
Market-wise, the US and Europe have most of the new unicorns, with 49 and 16 respectively. While funding continued to decline in various parts of the US, one metro area saw a huge jump in funding. Denver Funding increased by $1 billion, marking a 111% sequential jump.
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Funding for African startups totaled $1.7 billion in the first half of 2022, more than half of the total raised throughout 2021. The report also noted that at the current rate, funding for the sector could exceed last year’s total of $1 billion.
Among the global investing giants, Tiger Global Management was most active for the third straight quarter, investing in 86 companies. This was despite losses of about $17 billion as a result of this year’s selloff in technology stocks. Globally, the top 10 investors collectively invested in 553 companies in Q2 – a 22% drop from the previous quarter
region wise, retail technology Funding fell 43% on a quarterly basis to $13.2 billion, a seven-quarter low for the sector. Other categories also saw a significant slowdown in funding. Fintech saw a 33% quarterly decline in funding, and accounted for less than a fifth of all funding, for the first time since the fourth quarter of fiscal 2020. Digital health funding fell 32% to $7.1 billion, an eight-quarter low.