The venture capital landscape today, with regards to deal flow, looks similar to that of the early months of the pandemic in 2020. Crunchbase data showed global venture funding in Q2 2023 fell 18% quarter over quarter to $65 billion, down 49% compared to the second quarter of 2022, when startup investors spent $127 billion. The first half of 2023 is down by similar proportions. In H1 2023, global funding reached $144 billion, marking a 51% decline from the $293 billion invested in H1 2022 and a 10% decline from the second half of 2022.
“The trickle-down market effect from later-stage deals now to the seed and early-stage deals, especially around decreased valuation, has been shaping this year’s activities,” explained TechPoint President and CEO Ting Gootee. “This has a significant impact on an emerging venture community like ours where most founders are still relying on seed-stage funding to prove out market traction and compete for early-stage investments. The more investor connections we can create through events like our Venture Connect, IU Founders & Funders Network Venture Summit, 50 South’s Indiana Next Level Fund Summit, the Venture Club’s Innovation Showcase and Rally, the more opportunities we are creating collectively for our founders.”