Global Venture Funding Dipped $10 Billion in February

Decerry Donato

Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Global Venture Funding Dipped $10 Billion in February

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Global venture capital funding showed signs of a slowdown in February, with startup investors pouring $10 billion less into companies than they did in January, according to Crunchbase data.

VC investors globally cut $52 billion in checks last month, down 16% from $62 billion in January, per Crunchbase. While the $52 billion figure still represents a 24% year-on-year increase in startup funding compared to February 2021 ($42 billion), the monthly decline indicates that investors have grown increasingly cautious amid headwinds like inflation, stock market turmoil and the impact of Russia’s invasion of Ukraine.

The pullback is also striking considering the historic levels of VC funding seen recently. As Crunchbase noted, 2021 saw new monthly venture funding records set on four separate occasions: in January, March, June and November. The data platform added that while venture funding typically dips due to cutbacks in late-stage and growth funding, this time it also saw a 17% monthly dip in early-stage funding, as well.

Still, there remains ample interest and activity among growth investors, in particular. Crunchbase cited investment giants like Tiger Global, Insight Partners and SoftBank as having led or co-led more funding rounds this February than they did in January, despite public tech stocks taking a battering. Tiger Global has also shown a robust appetite for early-stage companies as well—with the firm’s partners having reportedly committed $1 billion dollars of their own cash to invest in seed-stage funds.

That isn’t the case for all investors, however, with major investors like Sequoia Capital, Temasek, Fidelity and Goldman Sachs all leading fewer large ($100 million-plus) rounds in February than usual, according to Crunchbase.

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Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
PLUS Capital​’s Amanda Groves.
Courtesy of Amanda Groves.

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David Shultz

David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.

Rivian Stock Roller Coaster Continues as Amazon Van Delivery Faces Delays
Courtesy of Rivian.

Rivian’s stock lost 7% yesterday on the back of news that the company could face delays in fulfilling Amazon’s order for a fleet of electric delivery vans due to legal issues with a supplier. The electric vehicle maker is suing Commercial Vehicle Group (CVG) over a pricing dispute related to the seats that the supplier promised, according to the Wall Street Journal.

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