Growth, expansion and late-stage VC funding rounds down by 26.8% in 2022, reveals GlobalData
As market conditions remained volatile, capital raising across most of the venture capital (VC) funding rounds took a hit in 2022 compared to the previous year. However, the decline was more prominent (26.8%) in growth, expansion and late-stage VC funding rounds (Series B onwards), finds GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that a total of 14,913 VC deals with disclosed funding rounds were announced globally in 2022, which is a decline of 9.4% from 16,460 in 2021. Meanwhile, the number of early-stage funding rounds (Seed and Series A) announced in 2022 fell by 2% compared to 2021.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Geopolitical conditions, challenging economic conditions and recession fears forced VC firms to revisit their investment strategies and the impact was more evident on the growth, expansion and late-stage VC funding deals as they involve relatively higher capital.”
The average deal size of early-stage VC funding rounds announced in 2022 was $11 million while the average size for growth, expansion and late-stage VC funding round stood much higher at $61.9 million.
Early-stage funding rounds dominated the global VC funding landscape in terms of volume with 75.8% share in 2022 while growth, expansion and late-stage VC funding rounds accounted for 24.2% share.
Meanwhile, the number of seed funding rounds mostly remained at the same level, whereas all the other funding rounds registered decline in 2022 compared to the previous year.
