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Laxman Pai, Opalesque Asia: The value of US venture capital deals fell significantly in the second quarter of 2022 as economic fears grew and Russia invaded Ukraine, said a study.
The outsized deals that became a theme of 2021 are not being completed as investors take a more cautious approach to the largest deals in the market.
According to a first-look release early Thursday from PitchBook-NVCA ahead of its quarterly Venture Monitor report, Q2 became the first quarter since Q4 2020 to post less than $77 billion in completed deal value, with just over $62 billion closed.
To put the slowdown in perspective, the deal value in the second quarter of 2022 was the highest of any quarter before the fourth quarter of 2020.
Fundraising topped $120 billion for the second consecutive year, with a strong showing from established fund managers in the first half of the year.
These managers closed 203 funds worth $94.7 billion in the first six months of the year. Already, 30 funds have closed on commitments of at least $1 billion, up eight from last year's previous high of 22.
On the exit front, the second quarter was much like the first in terms of exit activity, with the biggest change from the last two years being the complete lack of traditional IPOs.
Cryptocurrency and blockchain VC deal activity on a global basis declined from 656 deals worth $9.9 billion in Q1 to 514 deals worth $6.7 billion in Q2, the report said.
With more than $230 billion in dry powd...................... To view our full article Click here
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