The venture recession won’t come – it’s here – TechCrunch

Speed Venture capitalists’ rollout of funding globally slowed in April.

Venture capital dollar volume, like tracked by Crunchbase News in a new reportpeaked in November 2021. Since that time, the value of venture capital investments has dropped for most of the month before dropping another $5 billion from March to April.

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The fact that the venture capital industry is retreating is not a surprise. TechCrunch Covered reduced startup pricing at most stages earlier this week, for example. Many companies witnessed a pandemic outbreak that was lasting a return to Earth, further harming investor demand for previously hot portfolios and several recent IPOs in the tech sectors with rich start-up activity are heavily discounted.

Subscribe to TechCrunch +However, the data is important not only because it confirms our expectations for where venture activity will head in 2022 – it also indicates that the shift in the venture capital market will gradually demonstrate demonstrated to some extent, helping to explain why the Q1 2022 VC data was stronger than some predictions. Because the drop in VC investment won’t be a single thunderbolt, we expect to see more damage come in Q2 than Q1, and the Crunchbase News dataset underscores the view. .

This morning, we are analyzing the latest numbers to better understand the market sentiment surrounding the current venture capital market. As you will see shortly, much smaller than it was a few months ago.

A mix but full of meaning

Despite the 12-month low, we are not seeing a drastic drop. According to Crunchbase, the amount invested in private companies last month was only 10% lower than in March of this year. The annual drop isn’t huge either, with the figure for April 2022 just 13% less than April 2021.

The drop is also nuanced when looking at different investment periods. Actual seed funding has increased 14% year over year. But late-stage funding is down 19% year-over-year. While this month is unchanged from the previous month, we think it is the second most important number.

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