Have you been wondering about the state of startup funding in 2022? Well, check out our breakdown of AngelList and Silicon Valley Bank's report:
Revenue by Sector
Spend by Sector
Funding by Sector
Money Raised and Valuation Trends
Pre-Seed
Median Money Raised: $967,500
Median Post-Money Valuation: $9,000,000
Seed
Series A
Series B
Insights and Actions
Insights:
Funding slowed down significantly in Q3 and Q4 of 2022, making it harder for startups to raise capital.
A significant number of startups experienced down rounds in Q4 2022.
Valuations have decreased across all stages of funding, with pre-seed valuations dropping by 3.9%, seed dropping by 13.9%, Series A dropping by 9.6%, and Series B dropping by 20.8%.
Simple Agreements for Future Equity (SAFEs) continue to dominate in 2022, with 56% of deals on AngelList using this funding mechanism.
Startups are spending less to extend their runway, but the decrease in spending has not been significant.
Actions:
Startups should be prepared for a challenging funding environment in 2022, especially in Q3 and Q4.
It's important for startups to carefully consider their valuation and funding terms to avoid a down round.
Founders should be aware that valuations have decreased across all stages of funding and adjust their fundraising expectations accordingly.
If you're considering a SAFE for your next funding round, you're in good company.
While startups are spending less to extend their runway, founders should continue to keep an eye on their burn rate and look for opportunities to optimize their spending.