Feature: End of Year 2022 Report on Venture Capital and Private Equity
December 6, 2022
With three weeks left in 2022, the reports are coming in on the time period for Venture Capital and Private Equity. Each turn of the calendar post the pandemic era has contained its own personality and challenges, and 2022 has been no exception. From online articles around various financial report outlets, the IVCA has compiled the trends and tenor of the year 2022 …
VENTURE CAPITAL
Pitchbook.com, ‘Q3 U.S. Venture Capital Trends in Five Charts’
The third quarter of 2022 was a mixed bag for the U.S. venture landscape. Deal activity across all stages recorded signs of distress, and investors dealt with a lack of liquidity in the public markets. On the bright side, fundraising rose to record highs during the quarter.
READ MORE: https://pitchbook.com/news/articles/venture-capital-trends-Q3-2022
Crunchbase.com, ‘Global VC Pullback Is Dramatic In Q3 2022’
Venture funding for the third quarter of 2022 totaled $81 billion, down by $90 billion (53%) year over year and by $40 billion (33%) quarter over quarter, according to a Crunchbase News analysis. While funding for the most recent quarter will increase a little in the coming months as stealth fundings are announced, this is a huge drop in funding compared to prior quarters.
READ MORE: https://news.crunchbase.com/venture/global-vc-funding-pullback-q3-2022-monthly-recap/
Axios.com, ‘The Curious Case of 2022’s Venture Fundraising’
It’s becoming increasingly clear that 2021 will be an outlier year in virtually every way for startups… except one. U.S. venture fundraising is on track for a new record this year, per new Pitchbook data.
READ MORE: https://www.axios.com/2022/10/15/venture-capital-fundraising-2022
RopesGray.com, Podcast: ‘Venture Capital & Emerging Companies’
In this episode of the ‘R&G Tech Studio’ Venture Capital and emerging companies co-lead Brad Flint sits down with [Ropes & Gray colleague] Ed Black to discuss his practice and to share his thoughts on the evolving tech and regulatory landscape impacting the venture community.
LISTEN (17 Minutes): https://www.ropesgray.com/en/newsroom/podcasts/2022/november/podcast-rg-tech-studio-presents-venture-capital-emerging-companies-co-leader-brad-flint
PRIVATE EQUITY
EY.com, ‘Private Equity Pulse: Five Takeaways from 3Q 2022’
In brief … Firms opportunistically seek high-quality assets as deal sentiment softens, PE fundraising activity in 3Q22 slowed by 13% to US$125b versus Q2 and amid depressed valuations and expectation of prices between acquirers and sellers, PE exits fell 67% in the third quarter versus last year.
READ MORE: https://www.ey.com/en_us/private-equity/pulse
Insitutionalinvestor.com, ‘Private Equity’s Outlook Is Mixed as They Prepare for Headwinds’
Some PE firms will be able to raise cash and attract talent, while others will struggle as investors become more selective in backing new funds. As private equity firms bear the burden of continued macroeconomic challenges and rocky markets, managers anticipate declining returns, dampened fundraising, and broken deals.
BloombergLaw.com, ‘ANALYSIS: Private Equity Can Slow Down, But It Can’t Stop’
Even in the face of economic difficulties and market challenges this year, Private Equity cycles forward. Buyouts have slowed to a trickle, exits have been harder, and, for many in the industry, fundraising has been more challenging. But the PE wheel keeps spinning, and will continue to do so in 2023 – in part with the help of the over $1 trillion in unspent capital the industry has available to invest.
PrivateEquityInternational.com, Podcast: ‘Planning for the Unknown’
One of the greatest challenges of the current moment is to predict what happens next. 2022 brought inflation as part of the COVID-19 hangover, although the broader status quo seems unlikely to continue. As much as anyone plans for the worst, no company can plan by fear alone without ceding some advantage to their competitors. The hardest thing right now might be to factor in the chance that things may improve.
LISTEN (25 Minutes): https://www.privateequityinternational.com/podcast-planning-for-the-unknown/