Startup Funding Fell 67% in 2022

In 2022, startup funding fell dramatically—down 67% year over year. Late stage funding took the largest hit (down 67%), but early stage (series A and B) also dropped 59%. Seed stage investments were down 37%.

This could lead to more acquisitions in 2023 as startups run out of funding and don’t want a down round. It could also mean in an increase in ‘structure’ in deals where investors come in at the same valuation but with more favorable terms like multiples on liquidation preference.

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