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Laxman Pai, Opalesque Asia: Global venture capital (VC) investment during Q1'22 reached $144.8 billion, higher than all, but the four consecutive record-breaking quarters seen during 2021 - making for a robust result, despite the decline, said a study.
According to KPMG's Venture Pulse report, while total investment remained strong, the number of VC deals dropped considerably - from 10,775 deals in Q4'21 to 9,349 in Q1'22 - as geopolitical and economic factors combined to create a storm of uncertainty in the market.
The report said that the Russia-Ukraine war, rising inflation, and interest rates, turbulence in the global capital markets, ongoing supply chain challenges, and surging cases of COVID-19 in several jurisdictions likely contributed to a slowdown in deal-making activity as VC investors enhanced their caution and focused more on due diligence.
Meanwhile, VC investment declined in both the Americas and Asia during Q1'22. VC investment in the Americas fell from $103.3 billion in Q4'21 to $77.6 billion in Q1'22, while VC investment in Asia dropped from $55.2 billion to $32.6 billion. Only Europe bucked the downward trend, experiencing a modest increase from $31.5 billion in Q4'21 to $31.7 billion in Q1'22.
After a record year for exits, Q1'22 saw exit value drop more than 60% quarter-over-quarter - with just $122.3 billion in exit value across 684 deals, compared to $344.2 billion in exit value across 941 deals in Q4'21.
The number of $1 billion+ meg...................... To view our full article Click here
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