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Laxman Pai, Opalesque Asia: Global venture capital (VC) funding activity took a hit in 2022 and consequently deals volume with disclosed funding value suffered a 12.9% year-on-year decline, said a study.
According to the GlobalData report, VC investors have shown a reluctance towards high-value investments, resulting in a major setback for big-ticket deals in a year of unprecedented market challenges.
"This sentiment has been reflected in the lack of billion-dollar deals in 2022, which have felt the brunt of this dampened investor confidence," said the study.
"2022 saw the announcement of only four VC deals valued more than $1 billion as compared to the announcement of 22 during the previous year. Similarly, the number of deals valued more than $100 million also decreased from 1,330 in 2021 to 741 in 2022," said Aurojyoti Bose, Lead Analyst at GlobalData.
Meanwhile, low-value deals (investment value less than or equal to $10 million) dominated the VC funding landscape by registering the highest number during 2022.
In fact, despite experiencing a decline, the share of low-value deals as a percentage of the total VC deals volume with disclosed funding value increased from 64.1% in 2021 to 67% during the year.
In contrast, the share of deals valued at more that $100 million as a percentage of the total VC deals volume with disclosed funding value decreased from 5.3% to 3.4%.
"As most of the world is experiencing economic headwinds, investors seem ...................... To view our full article Click here
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