Dog startups are trying to get venture funding. That is the top-level finding of a new PitchBook report that looked at VC trends towards the end of 2022, including investments made at the seed, late-stage and nearing the exit levels.
The report said that angel- and seed-stage deal activity remained relatively resilient, with $21.0 billion invested across 7,261 deals. For the second year in a row, the capital raised last year exceeded $150 billion.
The year was not always positive. In the fourth quarter of the year, exit activity fell below $100 billion for the first time in two years. The Q4 acquisition value was the lowest in more than a decade.
According to the authors of the PitchBook report, public exits of VC-backed companies have slowed to almost nothing, with just 14 public listings occurring in Q4 demonstrating how much institutional investor appetite has been affected by rising interest rates and volatile macroeconomic factors.
Why is the situation unstable? There are a variety of factors that are blamed by PitchBook. According to the report, the upside potential for VC-backed startups fell dramatically in 2022, which caused many investors to leave the space.
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