So far, 2023 has been a record-breaking year for venture capital—but not in a good way.
Startup funding has seen a record slowdown this year, quarter, and now, according to new research, month. And the lag has been taking a toll on VC firms’ performance, per Fortune’s Term Sheet.
According to new research from Prequin, VC funding is not only down, but so are indicators of how firms are performing. Index return performance has dropped 10.4% in the expansion-stage quarter over quarter, and 5.9% in the early-stage in the fourth quarter of 2022. Year over year as of the last quarter of 2022, index returns were down 20% overall.
April has proven to be a particularly rough month as global funding declined 56% since last year, according to new data from Crunchbase. Late-stage funding has fallen the most at 62% in a year-over-year comparison, while early-stage funding declined to 48% and seed dropped by 50%. Read more.
