This marked the biggest quarterly percentage drop in deals (and the second-largest drop in funding) in a decade, the report said. Despite the steep dive, funding and deal numbers remained above 2020 levels.
The US drove almost half of all funding with $52.9 billion, a 25% drop from the previous quarter and the lowest in any quarter since 2020.
The number of deals fell 15% globally on a sequential basis. The number of M&A deals also fell by 16% to the lowest in six quarters.
Only 85 unicorns were minted in Q2, a 43% drop from the previous quarter.
Markets-wise, the US and Europe accounted for most of the new unicorns, with 49 and 16, respectively. While funding continued to fall across various parts of the US, one metro area saw a huge jump in funding. Denver funding was up by $1 billion, marking a 111% sequential jump.
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Funding for African startups totaled $1.7 billion in the first half of 2022, more than half of the total raised in all of 2021. The report also said that at the current rate, funding for the region could exceed last year’s total by $1 billion.
Of the global investing giants, Tiger Global Management was the most active for the third straight quarter, having invested in 86 companies. This was despite its loss of about $17 billion as a result of this year’s selloff in technology stocks. Globally, the top 10 investors in Q2 collectively invested in 553 companies — a 22% drop from the previous quarte
Sector-wise, retail tech funding dropped 43% on a quarterly basis to $13.2 billion, marking a seven-quarter low for the sector. Other categories also saw a significant slowdown in funding. Fintech saw a 33% quarterly decline in funding, and for the first time since the fourth quarter of the financial year 2020, accounted for less than a fifth of all funding. Digital health funding fell by 32% to $7.1 billion, an eight-quarter low.
