Q3 2022

In partnership withThe definitive review of the US venture capital ecosystem

PitchBook Data, Inc.

JOHN GABBERT Founder, CEONIZAR TARHUNI Senior Director,
Institutional Research & Editorial
DYLAN COX, CFA Head of Private Markets
Research

Analysis
KYLE STANFORD, CAIA Senior Analyst, US
Venture Lead
MAX NAVAS Analyst, VC
pbinstitutionalresearch@pitchbook.com

Data
SUSAN HU Data Analyst

Contents

Publishing
Report & cover design by Joey Schaffer,
Chloe Ladwig, and Megan Woodard

National Venture Capital Association(NVCA)

Executive summary

3

NVCA policy highlights

4

Overview

5Angel & seed

8

Early-stage VC

10Late-stage VC

13

Insperity

15

Regional spotlight

17

J.P. Morgan

18

Deals by sector

20

Contact Insperity

Venture debt

25

capitalgrowth@insperity.com

Female founders

27

Nontraditional investors

29

Exits

31

Fundraising33

Q3 2022 league tables

35

Methodology

36

2
PITCHBOOK-NVCA VENTURE MONITORBOBBY FRANKLIN President & CEO
SHILOH TILLEMANN-DICK Research Director
SABRINA FANG Vice President of Communications
and Marketing
ROBIN CEPPOS Communications Manager

Contact NVCA
nvca.org
nvca@nvca.org

Insperity

PAUL J. SARVADI Chairman and CEO
LARRY SHAFFER Senior Vice President,
Marketing and Business Development
RANDY FISHER Senior Strategy Manager,
Marketing and Business Development

Insperity.com/capitalgrowth

J.P. Morgan Commercial Banking
JOHN SIMMONS Head of MMBSIMELISSA SMITH Head of Specialized Industries
for MMBSIPAMELA ALDSWORTH Head of Venture Capital
Coverage
VIRGINIA CHAMBLESS Head of ResearchContact J.P. Morgan
jpmorgan.com/commercial-banking/startups

Executive summary
Amid rising interest rates, fewer public listings, and the most complicated macroeconomic trends of the past generation, there
is a broad desire to predict expectations in VC markets. With the end of Q3, there are easy answers and there are hard ones.
First, an easy answer: Broadly speaking, Q3 VC activity was below the historic heights of 2021 and early 2022. However, VC isn’t
about panicking over quarterly fluctuations, and Q3’s activity is above historical averages and part of a durable, positive trend in
the industry.
Some of the high points of 2022 have been seen in the healthcare, clean tech, energy, and transportation industries. Deal counts
across these four sectors at the end of Q3 are close to or above full-year numbers for 2020. Similarly, investments by crossoverinvestors and corporate venture capital (CVC) funds are all near or above 2020 totals. The mid-Atlantic, Southeast, andMountain regions have seen steady growth over the past few years, with all expected to exceed their 2020 totals.
Points of stress in the market are also appearing. This year, exits are down almost 50% against historical norms, with public
listings at record lows. In 2022, there have been just 59 public listings so far, compared with 303 in 2021 and 145 in 2020.
Fundraising is another possible point of tension. While overall figures are strong—the total capital raised at the end of Q3
2022 is $150.9 billion, just 2.6% away from the full-year 2021 record of $147.2 billion—62% of that total is going to 6% of funds.
Mega-funds are nothing new. However, there are questions as to how their continued growth will impact emerging managers
and ecosystems.
While Q3 has clarified several industry trends, its most durable legacy will likely be the passage of the Inflation Reduction Act
and the CHIPS and Science Act. These acts of Congress create huge investments in technology and infrastructure development.
Notably, they make hundreds of billions of dollars of public money available for investment over the coming years. Furthermore,when combined with other projects such as the State Small Business Credit Initiative, these acts create an environment for
private fund managers to partner with the public sector and academia and develop more-robust entrepreneurial ecosystems
outside of traditional hot spots.
The facts of Q3 paint a mixed picture for the VC industry. Investors report that they are making deals, and there is a consensus
between managers and founders on how to prepare for potential challenges ahead. The market is also becoming increasingly
consolidated and realizing fewer exits than at any time in recent history. Recently enacted federal legislation promises to makemore funding available for managers and founders alike. Tracking the implementation of this legislation is a primary concern.
While some of the provisions in the packages (such as the research and development [R&D] tax credit expansion for startups)
will come into effect as soon as January 2023, other provisions are still far from implementation.
In summary, Q3 can provide reasons for optimism or pessimism, depending on where the viewer is looking. However, it has also
opened the door to a variety of opportunities for those who are paying attention.

3
PITCHBOOK-NVCA VENTURE MONITOR

Sponsored by

NVCA policy highlights
Lawmakers on Capitol Hill wrapped up a busy summer

Inflation Reduction Act

regulatory agenda that targets private funds,

with movement on several legislative priorities.

including the VC industry. Several board members

Below are key policy initiatives for NVCA and their

After a long and winding road, Democrats finally

met with SEC Commissioner Hester Peirce andstate of play.

coalesced around a package of climate, healthcare, andDivision of Investment Management staff in July totax provisions that they were able to pass along party

discuss the agency’s private funds proposal and howlines. Despite a bumpy process, the end result was

it would negatively impact the VC industry.

CHIPS and Science Act

pretty ideal for the VC industry. We were able to avoid
Before departing Washington for the August

significant damaging tax increases on the industry andRecently, NVCA submitted a supplemental comment

recess, Congress passed the NVCA-supported

secured targeted improvements to climate credits forletter to address questions that arose during ourcompetitiveness legislation called the CHIPS andstartups. We also saw a small expansion of startups’

meetings about the true scope of the liability

Science Act. Signed by President Biden, the act

ability to offset payroll tax payments with unused R&D

limitation ban in the private funds proposal. The

represents the largest investment in research,credits from $250,000 to $500,000.

letter clarified that the proposal goes much further
and referenced how the impact on the VC industry

technology commercialization, and domestic
production in at least a generation.
The legislation includes up to $250 billion for:• Semiconductor research

Our outreach efforts included dozens of Hill meetings,

would be far more profound by discouraging

two research projects, individualized slide decks

new investments into unproven innovations andfor states and regions, in-state and virtual events

threatening the appropriate risk of actively engaging

and roundtables with policymakers, and significant

and managing portfolio companies.

coalition work with other affected industries.
We are continuing formal meetings with SEC• Domestic manufacturing• The establishment of a technology
commercialization directorate at the National

Tax increases considered but rejected during theofficials and policymakers on Capitol Hill and theprocess include proposals to:administration to discuss the full proposal’s negative
impact on the venture ecosystem.

Science Foundation (NSF)• New test bed facilities for startups andother entities• Basic research at the NSF and the Departmentof Energy• A new regional technology hub program• Programs to promote technology
commercialization and entrepreneurship at the
National Laboratories• Tax capital gains as ordinary income• Impose a surtax on those making more than
$5 million• Create a mark-to-market tax regime

In July, the House passed a revised DEAL Act, a• Impose an annual tax on private funds

longtime NVCA priority championed by Rep. Trey

based on AUM

Hollingsworth (R-IN) and Sen. Mike Rounds (R-SD)• Impose a five-year holding period for carriedinterest, with major technical issues• Retroactively limit qualified small business stock to

NVCA has been heavily engaged in this package
since its original introduction. We provided

DEAL Act

that directs the SEC to modernize the definition of a
VC fund for purposes of fund registration (read ourstatement here).

30% exclusion• Require companies majority-controlled by private

The original bill directed the SEC to consider

recommendations and encouraged policymakers

investment firms to file taxes as a single entity

secondary investments as qualifying so long as the VC

to leverage the unique capabilities of the American• Aggregate the revenues of companies majority-

fund maintained a “predominant” number of direct

startup ecosystem. We are thrilled to see that theowned by private investment funds for purposes ofinvestments into private companies and to consider

final bill retains language requiring new company

determining the application of a book minimum tax

investments into other VC funds as qualifying as well.

formation as a primary objective for several programs.

(a 15% minimum tax rate for companies with morethan $1 billion in financial statement income)Now that the bill has been signed into law, we areshifting to an implementation strategy with the

We continue to engage and will update NVCA
members with further details as we learn more.

Financial regulatory proposals

various agencies and will begin rolling out a series of
events, collateral, and a more in-depth analysis of the

NVCA has continued engagement on Securities andbill’s provisions to educate the NVCA membership.

Exchange Commission (SEC) Chair Gary Gensler’s

4
PITCHBOOK-NVCA VENTURE MONITOR

Overview
Deal count higher than expected
US VC deal activity by quarter

6,000

$100

5,000

$80

4,000

$60

3,000
$40

2,000

$20

1,000

$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

Q2

2018

Q3

Q4

Q1

2019
Deal value ($B)

Q2

Q3

Q4

Q1

Q2

2020
Deal count

Q3

Q4

Q1

2021

Q2

Q3

2022*

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Deal activity across all stages isshowing more signs of distress,
recording the third consecutive decline

2022 surpasses all years except 2021
US VC deal activity

17,867in completed deals. Estimated deal
count in Q3 (4,074) is off by almost
20% from the quarterly record highrecorded in Q1 (5,049) and is the lowest
count seen in any quarter since Q42020 (3,364). Q3 saw $43.0 billion

9,968

10,964

11,687

12,051

11,416

10,56013,076

11,871

12,8138,082$145.8$168.7$343.6$194.92013$145.1

historical basis.

$89.2

even if the numbers remain high on a

$83.8

2012

amid the global economic downturn,$86.3

focus on business fundamentals$49.7

of investor hesitancy and increased$41.7

a nine-quarter low, cementing a tone

$73.8

invested in VC deals across all stages,

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Deal value ($B)

Deal countNontraditional investors continued

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

to reduce their activity in VC-backed
startups amid ongoing economic
uncertainty. Notably, deal countnontraditional investor slowdown,mega-deals were closed in Q3, theparticipation has declined for all

especially by asset managers and PE

lowest total since Q3 2020.

nontraditional investor types except

funds, would be noticeable in the datafor corporate investors, which were

due to the reliance on these institutions

US VC fundraising has set a new annual

involved in more than a quarterto complete mega-deals—87% ofhigh through only three quartersof all completed deals in 2022. In

mega-deals received nontraditionalof 2022. US-based VC funds havepast reports we have noted that ainvestor participation in 2021. Just 95

raised $150.9 billion, surpassing last

5
PITCHBOOK-NVCA VENTURE MONITOR

VC-backed IPO index continues underperformance
2022 US VC IPO index*
1.5x

1.0x

0.5x

0.0x

-0.5x
Jan

Feb

Mar

VC IPO Indexed Value

Apr

May

De-SPAC Indexed Value

Jun

Jul

Aug

Sep

Morningstar US Small-Mid Cap Broad Growth Extended Indexed Value
PitchBook-NVCA Venture Monitor*As of September 30, 2022

year’s previous record and taking the

web-based design platform—the deal

$670.4 billion in exit value. With the

21-month fundraising total above $298.1

is not yet closed. Few options remain

expectation that the current slow

billion. Given public market turbulence

for the growing group of unicorns,

environment will remain, this year’sand frozen avenues for liquidity, we

as 2022 has produced only 59 public

total exit value is in danger of falling

expected LPs to be concerned about

listings, just one year after a record 303

below $100 billion for the first time

their overexposure to this asset class

VC-backed public listings generated

since 2016.

and the potential for timely returns

year, we are finally beginning to seethat momentum atrophy, as just $29.4
billion in fundraising was added to thedataset since our Q2 report, the lowest
quarterly total this year.
With just $14.0 billion in exit value
generated across an estimated 302
exits in Q3, there were few brightspots for the VC exit market. Thesefigures are in line with exit activity
expectations around 2014 and well off
the highs seen in 2021—$266.8 billion
in exit value was generated in Q2
that year. A highlight of the quarter isMarket quickly swinging back to being investor friendly
US VC dealmaking indicator
Investor friendly

activity. Entering the second half of theStartup friendly

negatively impacting fundraising

100
90
80
70
60
50
40
30
20
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017

2018

2019

Early-stage normalized smoothed index

surely Adobe’s announced $20 billion

2020

2021

2022*

Late-stage normalized smoothed index
PitchBook-NVCA Venture Monitor*As of September 30, 2022

acquisition of Figma, a developer of a

6
PITCHBOOK-NVCA VENTURE MONITOR

Diversifying,educating,andShaping
the futureempowering the VC investorof venture capitalclass to advance the industry
and maximize impact and returns

ventureforward.org
Venture Forward is a 501(c)(3) supporting organization to NVCA.

Venture Forward is a 501(c)(3) supportingorganization to NVCA.

NVCA EMPOWERS
THE NEXT GENERATIONOF AMERICAN COMPANIESAs the leading trade organizationin this country, NVCA provides
a wealth of resources for VCs,
including access to exclusive data,
education, connecting with peers,and shaping the policy agenda.
Beth Seidenberg

Founding Managing Directorof Westlake Village Biopartners

Become a NVCA member today | www.nvca.org

Angel & seedAngel & seed activity slides

US angel & seed deal activity by quarter
2,500

$7
$6

2,000

$5
$4

1,500

$3

1,000

$2
500

$1
$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

Q2

2018

Q3

Q4

Q1

Q2

2019

Q3

Q4

Q1

Q2

2020

Deal value ($B)

Deal count

Q3

Q4

2021

Q1

Q2

Q3

2022*

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Q3 was a bit less resilient comparedwith the first half of the year, whendeals for seed investments werecompleted at an unwavering pace. This

Seed deals showing strength
US angel & seed deal activity

7,000

$20

quarter saw a decline of around 18%
from the Q1 high, dropping angel & seed

6,000
$15

5,000

deal activity back to 2020 levels. Seedcompanies are relatively less impacted
by public markets than late-stage

3,911
$10

3,000

companies, so the quick shift in activity

2,000

$5

705

nature of the 2021 seed market. Once

number of micro-funds raised since thebeginning of 2021 (779).

1,000

Angel deal value ($B)

Seed deal value ($B)

Angel deal count

2021

2020

2019

2018

2017

2016

2015

0
2014

will find tailwinds from the record

$0
2013

investment climate, seed activity

2012

the market returns to a more normal2022*

points more toward the unsustainable

4,000

Seed deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Despite a slowdown in activity, coredata points from seed investments haveremained at the heightened levels set

as the current quarter’s deal size andmore selective in their investments inin 2021. The median seed deal size forpre-money valuations were both thethis economic climate, this massive

2022 sits at $2.8 million after Q3, andhighest in our dataset at $3.5 million

growth in seed-stage participation

the median pre-money valuation for

and $10.1 million, respectively.

continues to put upward pressure on

seed investments reached $10.5 million.

deal sizes and valuations. Not only are

These figures aren’t leaning on the

While the strength of valuations could

there more micro-funds, but also larger,

strong numbers from Q1 and Q2 either,be due to investors in the market being

multistage investors have increased

8
PITCHBOOK-NVCA VENTURE MONITOR

Median angel deal values flat

Seed deal values continue rise

$1.5

$6

Range of US angel deal values ($M)

Range of US seed deal values ($M)

$5.0

$5

$1.0
$1.0

$4.6

$4

$2.8

$3

$0.6
$0.5

$2

$0.3

$1.1

$1

$0.1
$0.0

Average75th percentile

Median25th percentile

Average75th percentile

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

25th percentile

PitchBook-NVCA Venture Monitor*As of September 30, 2022

their activity. Tiger Global, for example,

do not have estimates for first-timelikely further to fall from an activity

has been a part of 15 US seed deals

financings as we do for other stages ofstandpoint, but the growth of the seedannounced in 2022, nearly double

VC, but already our team has captured

and first-financing market over thethe total number of US seed deals themore first financings than almost any

past several years has lifted the floor

company had participated in previously.

quarter before 2021, and that total isof expectations. These deals are much

expected to grow. The unexpectedfurther from macroeconomic volatility,

Congruently, first-time financing data

strength of first-financing activity isthough we shouldn’t expect this stage

shows that Q3 was slower than recent

positive news for the industry.

of companies to remain immune fromperiods, though the number of deals

the impacts as headwinds continue.

captured by the end of the quarter was

Given the lag between industry

off by just 5.8% from last quarter. We

narratives and data trends, there is

Seed valuations well above 2021

Nearly $19 billion in first financings YTDMedian US angel & seed pre-money valuations ($M)

US first-financing deal activity
$30

$10.5

$25
$20

$15.7

$15.2

$15.0

$24.6

$18.9

2019

2020

2021

2022*

2022*

2021

2020

2019

2018

2017

2015

2014

2013

2012

2016
Angel

2018

$0

$0

$9.6

1,000

2017

$5

$9.3

2,000

2016

$10
$9.4

$2

4,000
3,000

2015

$3.5

$4

3,497

$15

$8.2

$4.9

2014

$6

$7.3

$8

5,000
3,871 3,780 3,864
3,787 3,735
3,338 3,522 3,466
3,276

2013

$9.0

$6.7

$10

6,000

5,275

2012

$12

Deal value ($B)

Seed
PitchBook-NVCA Venture Monitor*As of September 30, 2022

0Deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

9
PITCHBOOK-NVCA VENTURE MONITOR

Early-stage VC
Q3 reinforces negative quarterly trend of early-stage deal activity
US early-stage VC deal activity by quarter
$35

1,600

$30

1,400
1,200

$25

1,000

$20

800

$15

600

$10

400

$5

200

$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

Q2

2018

Q3

Q4

Q1

Q2

2019
Deal value ($B)

Q3

Q4

Q1

2020
Deal count

Q2

Q3

Q4

Q1

2021

Q2

Q3

2022*

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

The dust had yet to settle as earlystage VC activity trended downward
for the third quarter in a row, withroughly $13.5 billion invested across

Early-stage deal count on pace to surpass
pre-pandemic figures
US early-stage VC deal activity

5,312

an estimated 1,226 deals. However,the current year’s early-stage VC
investment is roughly $55.8 billion,
already surpassing the 2020 full-year
figure of $45.0 billion, suggesting
the long-term growth for early-stage

3,225

3,371

3,487

3,165

3,523

3,613

3,753

4,031

3,480

2,713

investment remains positive. Now that
we are well into 2022 and roughly six

capital deployment in early-stage

$25.6

$30.3

$41.6

$44.9

$45.0

$87.6

$55.8

public market volatility has weakened$26.2

materialize in the data. The continued$21.7

in prior quarters is slowly starting to$16.8

March, the reporting lag highlighted$14.0

months past the inflationary surge in

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Deal value ($B)

deals as investors become more

Deal countEstimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

apprehensive about the large, outliersized deals of the past couple years.
Investors are focusing on investing in

Early-stage investors can no longer

last few quarters resulted in a medianthe fundamentals of a startup instead

make investments under the pretense

early-stage deal size of $8.9 million inof relying on another VC firm to investof growth as seen in the robust

Q3, a 19.7% decrease from the priorat an even higher valuation.

valuation environment of 2021. The

quarter’s median early-stage deal size

increase in investor prudence over theof $11.0 million. The decrease in median

10
PITCHBOOK-NVCA VENTURE MONITORYTD deal values remain afloat despite
QoQ decline

YTD early-stage valuations maintain lead
above historical figures

Range of US early-stage VC deal values ($M)$25
$20

Range of US early-stage VC pre-money valuations ($M)
$23.8

$160

$23.2

$140

$140.7$115.0

$120
$100

$15

$80

$10.0

$10

$55.0

$60
$40

$5

$2.4

$25.0

$20

75th percentile

Median25th percentile

Average75th percentile

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

Average

2015

$0

$0

25th percentile

PitchBook-NVCA Venture Monitor*As of September 30, 2022

deal size is likely the result of depressedvalue of $5.5 billion. Mega-round deals

long-term trend, yet remains robust for

public market exit conditions finallyaccounted for 40.7% of the total capitalstrong companies. We expect investors

breaking through the insulated early

invested across early-stage VC in Q3.

will look to mitigate risk by backing serial

stage and affecting valuations. Startup

This quarter’s mega-round activity falls

entrepreneurs, some of whom raisefounders may be opting to raise smaller

short of the 2021 quarterly average ofoutsized rounds in the early stage; suchamounts of capital in an effort preserve

42 rounds yet is still above 2020’s figureis the case with Andreessen Horowitz’s

equity and to simply bridge the gap untilof 17, reinforcing the notion that the VC

reported $350.0 million investment in

the market resumes its strength.

market is returning to the pre-pandemic

Adam Neumann’s latest startup, Flow.

Contrary to the H1 2022 growth

Early-stage capital availability falling

valuations, Q3 exhibited signs of aslowdown, with a median pre-money
valuation of $46.0 million. This figure
represents a 16.4% decrease from theQ2 2022 median of $55.0 million andis more on par with the 2021 full-year
figure of $44.0 million. We expect
early-stage pre-money valuations tocontinue their descent through the endof the year as the market searches for a
new equilibrium.
Evidence of a slowdown in the earlystage can also be seen in the number

Capital supply-demand ratio in the early-stage VC marketplace
Dollars of supply to dollars of demandof median early-stage pre-money

$14
$12
$10
$8
$6
$4
$2
$0
Q1

Q3

Q1

2017

Q3

Q1

2018

Q3

Q1

2019

Q3
2020

Q1

Q3
2021

Q1

Q3

2022*

Early-stage VC

of mega-rounds completed. 24 earlystage mega-rounds ($100 million+) were

PitchBook-NVCA Venture Monitor*As of September 30, 2022

completed this quarter, with a total deal

11
PITCHBOOK-NVCA VENTURE MONITOR

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Late-stage VC
Q3 deal value plummets in response to continued depressed exit conditions
US late-stage VC deal activity by quarter
$70

1,800

$60

1,600
1,400

$50

1,200

$40

1,000

$30

800
600

$20

400

$10

200

$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

Q2

2018

Q3

Q4

Q1

Q2

2019
Deal value ($B)

Q3

Q4

Q1

Q2

2020
Deal count

Q3

Q4

Q1

2021

Q2

Q3

2022*

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Current avenues for startup liquidity
remain relatively frozen, further
constricting late-stage deal activity in

YTD late-stage deal value ahead of 2020 full-year figure
US late-stage VC deal activity

5,360

Q3, resulting in $24.9 billion invested
across an estimated 1,249 deals. The

4,238

total dollars invested in late-stage
VC decreased by 48.3% from the

3,543
3,082

Q2 figure of $48.1 billion and set acapacity to generate positive free cash

$112.5$237.2$122.5

2013

$90.0

valuations to balloon beyond their

2,628

$92.7

has caused startup headcounts and

2,375

$51.1

2012

historically implemented. Blitzscaling

2,468

$51.6

$28.8

disregarding the scaling processes$24.9

heightened investor support to grow,

2,385

$53.6

1,925

the surplus of available capital and

2,142

$47.0

record 11-quarter low. Over the past
two years, startups have leveraged

3,707

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Deal value ($B)

flow and loosen their dependence on

Deal countEstimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

investor capital. Depressed publicmarket comparables have even led
nontraditional investors to internally

VC GPs have been hesitant to markThe median late-stage deal value

mark down portfolio companies; such

down portfolios due to the impact it

continued to fall through the third

is the case with T. Rowe Price writing

could have on their ability to attract

quarter to $10.0 million, a 33.3%

down its investment in Canva, a unicorn

new fund commitments as well as thedecrease from the 2021 full-year figure

startup developing an online graphic

ability of their portfolio companies toof $14.6 million. This decrease seems

design platform, by 44% since theraise subsequent financing rounds atsignificant in the context of the priorend of 2021. Anecdotally, traditional

increased valuations.

year’s activity but is equal to the 2020

13
PITCHBOOK-NVCA VENTURE MONITORYTD median and average deal values fall
below 2021 values

YTD median valuations creep closer to2020 full-year figures

$60

$800

Range of US late-stage VC deal values ($M)

Range of US late-stage VC pre-money valuations ($M)

$700

$50

$582.1

$600

$39.6

$40

$500
$35.0

$30

$400

$322.5

$300

$20
$10

$11.5

$200

$3.1

$100

$0

$91.0
$31.0

Average75th Percentile

Median25th Percentile

Average75th Percentile

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

25th Percentile

PitchBook-NVCA Venture Monitor*As of September 30, 2022

full-year median deal size, suggesting

portion of the total invested capital to2021 full-year figures to $91.0 million,

that the repricing of late-stage VC deals

derive from those rounds until public

corroborating the notion that investors

may be falling below the long-term

markets become a viable path to liquidity

are less confident in this area of thegrowth trend. Despite the decrease, weonce again.

market. While valuations remain

have yet to see down round activity picksignificantly higher than median

up in the data. Naturally there is a lag inFurthermore, the impact of depressedvaluations seen in 2020 and earlier, we

reporting that limits our insight into down

exit conditions can be seen in the

expect this figure to continue to decline

round activity as well as the incentive forsoftening of late-stage pre-moneyas the market resets and public markets

founders to withhold funding information

valuations. Late-stage pre-money

remain volatile.

that could unfavorably portray theirvaluations YTD have dipped below

businesses. We expect down rounds tobecome more prevalent should current
market conditions continue or worsen

Late-stage capital supply hits low

Capital supply-demand ratio in the late-stage VC marketplace

Alongside the decrease in median deal
sizes, this quarter also saw a drop in thenumber of mega-rounds completed.
In Q3 there were 67 mega-rounds
completed at the late stage, with a
total deal value of $11.9 billion. As to
be expected, mega-rounds drive asignificant portion of the deal activity inthe late stage, but that portion of deal

Dollars of supply to dollars of demandthrough the end of the year.

$14
$12
$10
$8
$6
$4
$2
$0

value is starting to wane in response to

Q1

the lack of liquidity in public markets.

2017

We expect the increased scrutiny of

Q3

Q1

Q3

Q1

2018

Q3

Q1

2019

Q3
2020

Q1

Q3
2021

Q1

Q3

2022*

Late-stage VC

late-stage startups to result in fewer

PitchBook-NVCA Venture Monitor*As of September 30, 2022

mega-rounds completed and a smaller

14
PITCHBOOK-NVCA VENTURE MONITOR

Sponsored by

A WORD FROM INSPERITY

DE&I Considerations to Strengthen the Venture
Capitalist’s Portfolio• Recent changes in awareness of social justiceand the effects of the COVID-19 pandemic havebetter working and living conditions may increase

Sonya Mack

human capital risks in VC investments.

Director of Diversity,

increased the need for companies to review andstrengthen their approach to diversity, equity,

DE&I is more than an occasional agenda item,

and inclusion (DE&I).

ancillary program, or problem to be addressed. It• Venture capital (VC) firms can exemplify

is a strategic business imperative—a key pillar inhigh standards of care for women andsuccessful human capital strategy. When woven

underrepresented populations by calibrating

into the fabric of company strategy, leaderstheir own internal DE&I efforts.

view the organization through the powerful• Portfolio partners can be influenced to improvelens of caring for their people. They work totheir care for diverse employees when venture

ensure fairness and equity in the development

capitalists raise their investment criteria toof their workforce and universal employee

include embracing DE&I.

well-being by adopting flexibility, acceptance,• The benefits that accrue to companies that care

and accommodations for all. They also train

Equity, and Inclusion
Sonya Mack is the
Director of Diversity,
Equity, and Inclusion(DE&I) Services with
Insperity, and responsible for leading the DE&I
consultative services. Her passion for DE&I has
spanned the course of her career within non-profit
organizations and corporations. Sonya earned her
BBA in organizational behavior and managementfrom the University of Houston and is certified in
DE&I in the Workplace.

for their people include increased productivity,and hold managers accountable for their ability

employee loyalty, innovative thinking, and ato effectively listen and be empathetic toward

strong brand.

their team. This creates a preferred employer

Venture capitalists can empower their portfolio

relationship that elicits employee discretionary

companies to advance fairness for employees

The impact of multiple history-defining politicaleffort and is difficult to replace by goingfrom marginalized backgrounds and women.

and economic events and movements taking placeelsewhere.

This will result in employee loyalty, competitive
advantages, productivity enhancements, strong

over the last few years has brought to the forefront
a call for action to eliminate prejudice andHow can venture capitalists integrate DE&I into

public perception, and improved access toinjustice in the workplace. Business leaders andtheir portfolios?

suppliers and vendors.

Having DE&I as a strategic competency focuses theConsider these questions:investors have begun taking a more intentional
look at opportunities to increase representationof underrepresented groups (diversity), to ensure
fair and accessible opportunities and resources
for all employees (equity), and to create more
inclusive company cultures (inclusion). For venture
capitalists, evaluating and improving the employee
experience may mean the difference in achieving
their long-term investment goals.
Why should venture capitalists careabout DE&I?

venture capitalist on better deals and enhances thevalue they bring to their partners. To create this• Can you strengthen your investment criteriainternal competency, venture capitalists should

through self-assessment, feedback from

intentionally look within their own organization

portfolio companies, and industry benchmarks?

for opportunities to increase representation ofunderrepresented groups, ensure fair access to• Do your investment requirements reflect
diverse founders and equitable opportunities

resources and opportunities, and create a more

for women and underrepresented groups?

inclusive company culture. This is a process, not a• Do you evaluate the inclusiveness of a startup’s

one-and-done project.

human capital practices?
• Do you expect partners to establish employee-With a DE&I competency, venture capitalists

friendly values, cultures, processes, procedures,

Employees’ expectations have been dramatically

can model practices that demonstrate the value

systems, and practices?

changed by pandemic-related challenges, racialof promoting diverse peoples, viewpoints, andunrest, and the economic downturn. No longer are

experiences. They can steer portfolio companies

What framework can be used to adopt DE&I into

they willing to tolerate poor treatment or work

to more inclusive strategies by adopting DE&I-

company strategy?

where they feel disadvantaged. The significant

centric investment criteria. They can condition

reduction in the available workforce and a newdeals that influence startups to structure practices

A flash cut adaptation of strategy to a full-on DE&I

willingness to resign from long-held positions forand strategies that lead to progressive change.

focus is not likely. Such an approach would

15
PITCHBOOK-NVCA VENTURE MONITOR

Sponsored bylikely miss or mistreat most of the specific root

constructed job descriptions that accurately

resource groups and advance the adoption

issues that need addressing. However, remember

reflect work expectations. Annually agreed

of a DE&I committee, expanded recruitingthat employees are increasingly looking forupon performance objectives should be fair andperspectives, distributed training opportunities,

real attention, genuine concern for people, andunbiased. Regular data-supported performanceand the creation of safe spaces for employees tocommitment to these principles.

reviews should fairly evaluate progress andshare ideas and concerns.

provide genuine feedback, including any
DE&I solutions must be thoughtfully developed

developmental needs which in turn result inand implemented. It begins with changes intraining and development plans.

practices, then underlying policies, and eventually• Training and development. The level ofConclusion
At Insperity we follow the example of our founderbeing written into overarching strategies

company commitment to DE&I principles can be

and CEO Paul Sarvadi in supporting, valuing,

supported by key metrics that sustain progress.

measured by the developmental opportunities

and caring for our people. We have experienced

afforded diverse employees. Human capitalfirsthand the power and economic benefits of a

We suggest using the employee life cycle

strategies should require equal and fair accessdiverse and empowered workforce. VC firms canto guide the transition to a more strategic

to individualized development resources thatstrengthen their own companies and introduce

DE&I organization:

help each employee progress and reach their

these benefits to their partner companies byhighest potential. The developmental plan iselevating DE&I strategies and initiatives.

• Culture of well-being. Create a culture ofinclusion and belonging that boldly affirmsthat all people are valued, respected, andsupported. Develop an understanding of theemployee experience, including the varied
impacts from family obligations, economic
struggles, challenges associated with ethnicity,
gender, sexual orientation, and physical ormental health, among others. Evaluate how thecurrent company culture treats these issues andengineer changes where needed to provide due
consideration to individual well-being.
• Attracting and recruiting. Expanding employee
searches to reach more candidates fromunderrepresented groups is more practical
now than ever before. Remember, diversity ofthought and experience is powerful. The shift
to remote work has provided employers’ accessa key indicator that people are valued by thecompany. Regardless of employee positionor level, turning their specific developmental
needs into strengths will increase theircontribution and bring added value to the firm.
any level is expensive and time consuming.
Reviewing reasons for leaving may reveal that
employees from underrepresented groups
are leaving at a higher rate than others. They
may have felt under-appreciated or that theirprogression was capped. While some people
leave for better opportunities, these reasonsshould be immediately addressed.
How can a VC firm create a focus on employee
well-being?
The whole intent of infusing DE&I into company

geography. No longer must they try to persuade

strategies is to access the power of fair anda diverse candidate to move away from theirequitable employee treatment and accrue its

cultural home or family to work onsite.

value to the company. Intentional and successful• Onboarding. Onboarding is the new employee’s

strategy development requires clear goals,

first impression of the firm and a key indication

leadership commitment, effective changeof the company’s commitment to their

management, and impactful communications.

individual success. It folds them into the society

During start up, most founders are scrambling toof their new peers and impresses the culture

establish and secure funding for their company,

upon them. Assigning a temporary mentor or

having little time to consider people-focused

host will help familiarize new workers with theinitiatives. Venture capitalists can bring an

work requirements, resources, and coworkers.

increased awareness of people’s needs andperformance begins with clear and carefully

your VC firm and your partners, contact Insperity
at: Randy Fisher, Private Capital Development
Director, randy.fisher@insperity.com.

• Employee retention. Replacing workers at

to diverse candidates beyond their immediate• Performance and progression. HighFor more on bringing the benefits of DE&I to

expectations and suggest ideas to strengthen
human strategies. They can establish employee

16
PITCHBOOK-NVCA VENTURE MONITOR

Insperity has helped
thousands of startups
by providing HR solutions to help them gain acompetitive advantage for talent and providing the
HR infrastructure they need to support their growth.
Insperity believes startups are critical to the vitalityof the American economy, and we’re eager to work
alongside up-and-coming companies who sharethat belief.

Regional spotlight
California markets leading the way*
SeattleBostonQ3 deal count: 95
Q3 deal value: $1.6B

Q3 deal count: 184
Q3 deal value: $3.9B

New York

Chicago

Bay AreaQ3 deal count: 586
Q3 deal value: $11.8B

Q3 deal count: 81
Q3 deal value: $790.7M

DenverQ3 deal count: 449
Q3 deal value: $5.7B

Philadelphia
Q3 deal count: 103
Q3 deal value: $681.1M

Q3 deal count: 88
Q3 deal value: $1.1B

Los Angeles

Washington, DC

Q3 deal count: 321
Q3 deal value: $7.1B

Q3 deal count: 86
Q3 deal value: $772.4M

San Diego
Q3 deal count: 67
Q3 deal value: $1.0B

AustinQ3 deal count: 70
Q3 deal value: $701.2M

Miami
Q3 deal count: 75
Q3 deal value: $1.3B

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Deal values outside major markets lag

Valuations lower outside of Bay Area

$20

$70

Median early-stage deal value ($M) by CSAMedian early-stage pre-money valuation ($M) by CSA

$60

$15

$50
$40

$10

$30
$20

$5

$10

$0

Bay Area
Boston

New York
Rest of US

Bay Area
BostonLos Angeles
PitchBook-NVCA Venture Monitor*As of September 30, 2022

New York
Rest of US

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

Los Angeles
PitchBook-NVCA Venture Monitor*As of September 30, 2022

17
PITCHBOOK-NVCA VENTURE MONITOR

Sponsored by

A WORD FROM J.P. MORGAN

The evolving venture landscape“As they contend with ongoing market volatility

We have begun to see compression in privateand declining growth forecasts, startups andcompany valuations over the past six months,

investors are still trying to find their footing onfollowing the sell-off in public equities—andHead of Research,

valuations. Founders will likely face some toughtech stocks in particular—that began late lastCommercial Banking

choices in the coming months as they work to

year. With ongoing volatility, both public andGinger Chambless is

position their companies for long-term success.

private markets are trying to find their footing

a Managing Director

For those with ample runway, now is a good timeon valuations. If earnings expectations are resetand Head of Research

to block out the noise and build.”

meaningfully lower in the coming months, it isfor JPMorgan Chase—Pamela Aldsworth, Head of Venture Capitalpossible valuations could see more downside.

Commercial Banking. In this role, she produces

Coverage for J.P. Morgan Commercial Banking

Either way, companies early in their journey

curated thought leadership content for commercial

should be less hindered with time on their side
After the initial onset of the market

banking clients and internal teams. Her content

to build and grow into a higher valuation. For

downturn earlier this year, we have observed

focuses on economic and market insights, industry

Series B and later, the valuation reset process

several interesting developments.

trends, and the capital markets.

is more challenging given the vastly different

Reforecasting exercises are taking on greater

Ginger Chamblessenvironment since most [of these companies]

Additional contributors:

raised their last round.

Pamela Aldsworth

importance in the current environment given
the outlook for slowing economic growth,

The concerns of venture players havehigher interest rates, and reduced investment

evolved over the course of the year.

activity. The budgeting season is underway,

Head of Venture Capital Coverage
Andy Kelly
Managing Director, Venture Capital Coverage

and we expect many startups will lower growth

One of the most noticeable areas that shifted

expectations and place extra focus on bottom-

was thinking around labor force. Early in theand markets quickly resumed the up and to theline stability for the year ahead. It’s not a

year, the war for talent was a top challengeright trajectory. Now, we could be entering the

growth-at-all-costs environment anymore.

cited by startups, and many were paying up to

acceptance phase for valuations. While down

In software specifically, it’s possible that YoY

recruit and retain engineers and data scientists.

rounds have risen to 7% to 8% in recent months

revenue projections could come down fromAs the year progressed, the narrative shiftedfrom 5% earlier in the year, it’s likely valuations

80%-100% to 40%-60%.

to slowing hiring plans and, more recently,

will continue trending lower, as startups that

outright reductions in [labor] force. On this,last raised in early to mid-2021 come to market

Also, portfolio triaging is definitely going on

it’s usually best to be decisive and conservative

over the next two to three quarters. Even theinside the VC world. We are seeing a flight toso that the remaining team can refocus on the

Seed stage appears to be capitulating after

quality, where the best-performing companies

business without an overhang of additional

exhibiting resilience for much of 2022. In all

are receiving continued investment, in-line

layoffs in a few months’ time. We expect laborcases, the top end of the market has comeperformers are getting bridged to carry out

force reductions across the startup ecosystemdown the most, which logically correlates withreforecast plans, and underperformers are

to approach 10% to 20% by the end of the year.

the pullback from crossover investors whose

being put to market for the best possible

positioning was concentrated in theoutcome. At this stage, the financial andThinking around valuations and liquidity has

reputational strength of the VC firms at

also evolved. Several months ago, it might

the board table will play a meaningful role

have been reasonable to wait out the markets

Lastly, early in the year there was very little

in effecting a sale or funding across any

and pass on additional capital at a flat or down

discussion about recession risk, higher interest

liquidity gap.

round, hoping the pullback was short-lived

rates, or slowing customer demand. With

18
PITCHBOOK-NVCA VENTURE MONITOR

top-tier names.

Sponsored bynegative GDP growth in the US through the firstdeals are on the sidelines waiting to test the

Not surprisingly, direct to consumer (D2C) was

half [of the year] and high inflation pinchingmarket. There has been limited confidence toa sector that greatly benefited from above-purchasing power, startups reliant on strongtransact M&A in this climate, as it could betrend consumer spending on goods during theconsumer spending are facing headwinds. A

viewed as a capitulation or a portfolio-clearing

pandemic. As consumer spending patterns

broader shift in consumer spending patterns

event.

normalize and the risk of recession remains

from goods—which were above trend during

elevated, many companies in the D2C space

2021—to services has been underway in recent

At the same time, Raby indicates that sponsor-

have followed their public comps in a downward

months and likely to persist. Plus, with 300

backed private companies with healthy balance

trajectory, and VC investing in new companies

basis points of interest rate hikes since March

sheets are thinking increasingly about one-has waned.

and another 100 to 150 basis points possible

to-one partnerships / mergers with similar-

over the next few quarters, this is a meaningful

sized companies to grow ahead of a potential

increase to borrowing costs for young

reopening of the IPO market in 2023. In thesecompanies with debt.

types of combinations, financial benefits arebeing prioritized over an absolute strategic fit.

Our early thinking about the exit market
environment as we head into 2023 is that a

Larger sponsor-backed companies are being

pick-up in M&A is likely.

aggressive in portfolio building and looking
for opportunities to expand platforms via

We will likely need to see volatility in the equity

acquisition versus building solutions toand credit markets subside from elevated levels

compete. Nontraditional sponsors are looking

for the IPO market to reopen in any meaningful

into entering markets previously seen as

way, according to Michael Millman, Global

unaffordable. For example, sponsors are

Chair of Investment Banking. In the meantime,spending more time getting up to speed

select IPO issuers who have size and scale,on cyber and cloud, which are increasingly

combined with a profitable financial profile,recognized as evergreen sectors.

could evaluate the merits of executing a nearterm IPO. But with limited recent precedents,

Raby expects that a pickup in M&A activity

assessing how IPOs as an asset class price andwill precede a return of the IPO markets andtrade will be another important barometer ofthat dual-track late-stage fundraising / M&A

investor sentiment.

processes will be standard practice going
forward. With dilution even more challenging at

Regarding M&A activity within the venture-compressed valuations, a sale may become thebacked space, JC Raby, Head of Emerging

preferred path.

Technology Investment Banking, notes thateven though deal flow across the technology

Some companies and sectors are still raking insector is down an estimated 35% to 45% amid

funding successfully during this time frame,

the choppy market backdrop, strategic dialogue

while other areas are more challenged.

is more robust than ever. Strategic buyers
want to do deep dives on sectors and early /VC into transformational spaces continues,

growth-stage companies to understand what

including cyber, artificial intelligence, and cloudmight be actionable with calmer waters andinfrastructure. Given elevated geopolitical tensions

less perceived competition from well-funded

and the penetration of tech-enabled solutions

sponsors or more speculative venture investors.

across industries and government, demand for

While a few blockbuster transactions have beenthese areas remains exceptionally high.

announced recently, many [small to midsize]

19
PITCHBOOK-NVCA VENTURE MONITOR© 2022 JPMorgan Chase & Co. All rights
reserved. JPMorgan Chase Bank, N.A.
Member FDIC.
Visit jpmorgan.com/cb-disclaimer for full
disclosures and disclaimers related tothis content.

Biotech & pharma
More than $20 billion invested in biotech &pharma through Q3

Growing proportion of deals to late stage
Share of US biotech & pharma VC deal count by stage

US biotech & pharma VC deal activity

100%

1,384

Late-stage VC

90%
1,110
874
543

678

633

753

1,010

926

Early-stage VC

80%

Angel & seed

70%
60%

738

722

50%
40%

$23.8
2022*

0%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Valuations are up toovalues ($M)

valuations ($M)

Median and average US biotech & pharma VC deal

$160

$36.7

$120

$25

$100

$20

$80
$60

Average

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

$0
2016

$0
2015

$20

2014

$5

2013

$35.0

$40

2021

$9.8 $10.0

2012$112.0

$45.0

2022*

$30

Median$144.0

$140

$31.7

$10

2022*

Median and average US biotech & pharma VC pre-money

$40

$15

2021

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Deal values still growing

$35

2020

2019

2018

2017

2016

2015

Deal count

2014

10%
2013

$38.0
2021

$28.7
2020

2019

$17.9

$20.1

20%

2012

Deal value ($B)

2018

$13.1
2017

$10.2
2016

$11.0
2015

2014

$8.3

$6.4
2013

2012

$5.3

30%

Average
PitchBook-NVCA Venture Monitor*As of September 30, 2022

20
PITCHBOOK-NVCA VENTURE MONITOR

Enterprise techEnterprise tech investment slows heavily
from 2021

Early-stage deals see declining proportion
Share of US enterprise tech VC deal count by stage

US enterprise tech VC deal activity

100%

7,941

Late-stage VC

90%

4,446

4,873

5,147

4,787

5,227

5,749

6,130

5,882

Early-stage VC

80%

Angel & seed

70%

4,748

60%

3,528

50%

$102.4

20%

2022*

0%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

Deal count

2013

10%
2012

$190.0
2021

$82.8
2020

$76.3

$68.8

2019

2017

Deal value ($B)

2018

$42.0

$43.8
2016

$41.3
2015

$37.7

30%

2014

$23.3
2013

2012

$19.6

40%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Average deal value falls in 2022

Valuations remain highMedian and average US enterprise tech VC deal values ($M)

Median and average US enterprise tech VC pre-money
valuations ($M)

$30

$28.3

$450

$25.7

$384.4$373.9

$400

$25

$350

$20

$300
$250

$15

$200

$10
$5.0

$150

$6.0

$100

$5

$34.0 $40.0

$50

$0

MedianAverage

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

Average
PitchBook-NVCA Venture Monitor*As of September 30, 2022

21
PITCHBOOK-NVCA VENTURE MONITOR

Consumer techConsumer tech struggles

Seed deals continue decline

US consumer tech VC deal activity

Share of US consumer tech VC deal count by stage

Early-stage VC

80%

Angel & seed

70%

2,534

3,290

3,497

3,320

3,112

2,818

3,204

3,082

2,615

Late-stage VC

90%

60%

$41.7

20%

2022*

0%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

Deal count

2013

10%
2012

$104.4

$52.2
2020

30%

2021

$46.5

$59.7

2019

2017

Deal value ($B)

2018

$27.9

$30.7
2016

$27.6

40%

2015

$20.9
2014

$11.9

50%

2013

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Average deal value falls back to
pre-pandemic levels

Median consumer tech valuation rises
Median and average US consumer tech VC pre-money

Median and average US consumer tech VC deal values ($M)

valuations ($M)

$30

$400

$27.2

$355.2

$350

$25

$20.2

$298.0

$300

$20

$250

$15

$200
$150

$10
$3.5 $4.1

$100

$33.0
$25.0

$50

MedianAverage

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2020

2019

2017

2016

2015

2014

2012

2013

$0

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

2021

$5

2018

2012

$9.8

2,147

4,623

100%

Average
PitchBook-NVCA Venture Monitor*As of September 30, 2022

22
PITCHBOOK-NVCA VENTURE MONITOR

FintechFintech deal count stays highDeal count proportion remains levelwith 2021

US fintech VC deal activity

Share of US fintech VC deal count by stage
2,111

80%

Early-stage VC
Angel & seed

60%

1,155

847

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

Deal count

2013

0%
2012

$29.6

20%

2022*

$55.7
2021

$22.0
2020

$14.8
2018

2016

2017

$7.9

$8.6

Deal value ($B)

$17.5

40%

2019

709
$8.0

741

2015

$5.4
2014

$2.4

540

2013

2012

$1.8

367

672

Late-stage VC

1,511

1,208
1,145

100%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Deal values on the way down

Average valuation remains above$400 million

Median and average US fintech VC deal values ($M)

Median and average US fintech VC pre-money valuations ($M)$35$30$472.6$410.2

$500

$32.2
$24.9

$400

$25
$20

$300

$15

$200

$10

$6.0

$5.9

$100

$5

$40.0

$45.0

Average

MedianPitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2012

2022*

2021

2020

2019

2018

2017

2016

2014

2013

2012

2015

Median

2013

$0

$0

Average
PitchBook-NVCA Venture Monitor*As of September 30, 2022

23
PITCHBOOK-NVCA VENTURE MONITOR

Venture debt
Venture debt surpasses $22 billion in value
US venture debt activity

3,691
3,238
2,668

2,730

2,586

3,137

2,857

2,113

1,925

1,705
1,388

$7.5

$8.1

$11.6

$17.3

$15.0

$14.5

$25.6

$33.2

$33.2

$32.7

$22.8

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

Deal value ($B)

Deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Fourth consecutive year above $20 billion

Healthcare debt slows from past years

US tech venture debt activity

US healthcare venture debt activity

795

3,084

2,631
2,544
2,117 2,095

2,190

2,356

1,579
516

1,636
1,314

376

580

637

673

883

766

543
457

386

$3.0

$5.6
2018

2022*

$3.7
2017

$6.1

$2.0
2016

2021

$2.4
2015

$7.0

$2.4
2014

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2020

$2.1
2013

Deal value ($B)

$5.0

$1.2
2012

Deal count

2019

$20.8
2022*

$19.4
2018

$28.0

$10.8
2017

2021

$12.6
2016

$22.8

$13.8
2015

2020

$8.8
2014

$25.8

$6.4
2013

Deal value ($B)

2019

$6.3
2012

1,028

Deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

25
PITCHBOOK-NVCA VENTURE MONITOR

70% of venture debt going to late stage

Early stage sees shrinking portion of loans

100%

100%

Share of US venture debt deal value by stage

Share of US venture debt deal count by stageLate-stage VC
Early-stage VC
Angel & seed

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Median late-stage loan value falls

Range of US early-stage venture debt rounds ($M)

Range of US late-stage venture debt rounds ($M)
$25

$14.0

$20.8

$10.6

$10

$13.0

$13.9

Average75th percentile

Average75th percentile

Median25th percentile

Median25th percentile

PitchBook-NVCA Venture Monitor*As of September 30, 2022

$1.1

$1.1

2021

2022*

2020

2019

$0
2018

$0.5

2017

$0.7

$4.0 $3.8

$5

2016

$2.4

2015

$2.1

2014

2020

2019

2018

2017

2016

2015

2014

2013

2012

$0

$15

2012

$2

2022*

$4

$17.0

$10

2021

$6.3

$6

$7.3

$20

2013

$16
$14

$8

2022*

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Early-stage loans growing larger

$12

2021

2012

2022*

2021

2020

2019

2018

0%

2017

0%
2016

10%

2015

10%
2014

30%
20%

2013

30%
20%

2020

40%

2019

40%

2018

50%

2017

60%

50%

2016

60%

2012

Angel & seed

70%

2015

70%

Early-stage VC

80%

2014

80%

Late-stage VC

90%

2013

90%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

26
PITCHBOOK-NVCA VENTURE MONITOR

Female founders
YTD capital invested in female-founded
companies exceeds 2020 full-year figures

YTD deal count is on pace to exceed 2020
US VC deal activity in companies with all-female
founder teams

US VC deal activity in companies with at least one
female founder

4,430

1,132

3,092

1,666

2,032

2,235 2,122

2,473

2,730

771

3,092

2,811
481

396

1,282

483

550

742

719

646

441

$3.6
2022*

$8.0

$3.1
2018

2021

$2.2
2017

$3.3

$1.4
2016

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2020

$1.9
2015

Deal value ($B)

$3.8

$1.7
2014

Deal count

2019

$1.3
2013

$0.8

$32.4
2022*

2012

$57.1
2021

$20.1
2018

$23.4

$15.9
2017

2020

$10.8
2016

$24.7

$12.5
2015

Deal value ($B)

2019

$9.9

$6.9
2013

2014

$5.2
2012

278

Deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

YTD proportion of all-female-led deals
sees small downtick

Amid the economic downturn, femalefounded companies are receiving less capital

US VC deal count

US VC deal value

Female-founded company deal count as proportion of total

Female-founded company deal value as proportion of total
20%

30%

26.4% 25.5%

25%17.2% 17.2%

18%
16%
14%

20%

12%

15%

10%
8%

0%

0%

2.4% 1.9%

All female founders

At least one female founderAll female founders

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2%

2022*

5%

6%
4%

6.8% 6.7%

2021

10%

At least one female founder
PitchBook-NVCA Venture Monitor*As of September 30, 2022

27
PITCHBOOK-NVCA VENTURE MONITOR

All-female founder teams experience slightdecline in proportion of first financings

YTD proportion of late-stage deal
count increasing

Share of US VC first financings by founder gender

Share of US VC deal count for female-founded companies
by stage100%

All malefounders

100%

Late-stage VC

90%

Early-stage VC

80%

Mix

80%

All female
founders

Angel & seed

70%

70%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2012

2022*

2021

2020

2019

2018

2017

0%
2016

0%
2015

10%
2014

10%
2013

30%
20%

2012

30%
20%

2017

50%
40%

2016

50%
40%

2015

60%

2014

60%

2013

90%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

YTD proportion of deal value in angel &seed stage sees an increase over prior year

Bay Area leads the US for female-founderinvestment
Top five US CSAs by capital raised for companies with allfemale founder teams

Share of US VC deal value for female-founded companies
by stage100%

Late-stage VC

Combined statistical area

Capital raised ($B)*

90%

Early-stage VC

Bay Area

$5.5

80%

Angel & seed

New York

$4.9

70%

Los Angeles

$1.9

60%

Boston$1.0

50%Philadelphia

$0.6

40%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

30%
20%

New York leads the US in deal count10%

Top five US CSAs by deal count for companies with all-female
founder teams
2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

0%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Combined statistical area

Deal count*

New York

775

Bay Area

590

Los Angeles

377

Boston159

Washington D.C.

103
PitchBook-NVCA Venture Monitor*As of September 30, 2022

28
PITCHBOOK-NVCA VENTURE MONITOR

Nontraditional investors
Nontraditional investors continue slowing deployment to VC
US VC deal activity with nontraditional investor participation by quarter

2,500

$80
$70

2,000

$60
$50

1,500

$40
1,000

$30
$20

500

$10
$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

2018

Q2

Q3

Q4

Q1

Q2

2019
Deal value ($B)

Q3

Q4

Q1

2020
Deal count

Q2

Q3

Q4

Q1

2021

Q2

Q3

2022*

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Nontraditional investors haveoutsized impacts on trends within
venture, especially when looking

Deal value participation surpasses $145 billion
US VC deal activity with nontraditional investor participation

6,530

at total deal value. In recent years,
large nontraditional investors—asset
managers, sovereign wealth funds, and3,779

the top of the market. They participatedbegan to show the slowdown that the$108.3$129.6$271.6$145.1

2014$109.9

2013

$59.1

from nontraditional investors finally

$58.9

2012

market conditions would be easily seen
within venture data. Q3 deal activity

3,216

2,952

$60.2

a pullback from these investors due to

2,347
$26.9

This is a major reason we have said that

1,883
$22.3

investment within the venture market.

3,089

2,822

2015

2016

2017

2018

2019

2020

2021

2022*

Deal value ($B)

Deal countindustry expected. After 1,921 deals were

investor involvement. This data point,
as with many others in this slowdown, is
still higher than any quarter before 2021.
Q4 2020 received the highest amount of
nontraditional investment activity to thatpoint, a now lowly 1,115 deals.

Estimated deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

completed in Q1, Q3 saw roughly 1,400
completed rounds with nontraditional

4,102

$48.0

in 91.8% of mega-deals in 2021, which
accounted for $195.1 billion in total

5,037

4,239

PE firms—have participated heavily in

Except for corporate venture capitalstood at 58.5% and 43.6%, respectively,(CVC), deal counts of all nontraditionalin 2021. These declines are heavily

investor types have fallen faster than theinfluenced by the lack of large, outsizedbroader venture market in 2022. Dealdeals reliant on nontraditional capital.

value participation has fallen even more
precipitously. PE firms have participated

The lack of liquidity for late-stage

in just 48.3% of deal value in 2022 andcompanies has strained the strategies

asset managers just 34.9%. Those figuresthat they have deployed in the venture

29
PITCHBOOK-NVCA VENTURE MONITOR

Closing in on 2,000 deals led

Crossover participation falling fast

US VC deals led or solely funded by nontraditional investors

US VC deal activity with nontraditional and crossoverinvestor participation
1,582

2,757

869

Deal count

$62.5
2022*

$67.8
2020

$157.0

$41.9

2018

2017

2016

Deal value ($B)

PitchBook-NVCA Venture Monitor*As of September 30, 2022

818

711

2019

691

$45.8

$22.7

2015

467

$28.1

$17.6

477

$23.5

377

371

2014

$5.9

266

2013

$80.3
2022*

$4.7

$150.7
2021

2012

$65.8

$66.5
2018

2020

$32.6
2017

$57.1

$27.0
2016

Deal value ($B)

2019

$31.5
2015

$22.3

$12.5
2013

1,409

1,245 1,304

1,850

209

2014

$8.9

952

2012

783

1,156

1,605

2021

1,798
1,761

Deal countPitchBook-NVCA Venture Monitor*As of September 30, 2022

market in recent years. Elongated

Corporate investors have helped

averse, at least lessening their appetite

holding periods for the largest private

maintain deal activity for thefor deploying large amounts of capital

investments from hedge funds andnontraditional investor group. CVC has

into single transactions. Non-cash

mutual funds—because of liquidity

participated in 25.6% of VC deal countreturn potential for CVC does provide

regulations and redemption timelines

and 45.1% of deal value YTD; both these

an incentive to continue investment, as

for investors—can cause strategies tofigures are in line with past yearly highs.

creating an ecosystem around current

become overweight to VC. While we

Corporate investors have reaped record

product offerings can boost a company’s

don’t believe many funds are up against

profits in recent years, bolstering theirmoat from competitors.

this barrier yet, the strong markdowns inability to continue private investments.

public markets have reduced the appetite

However, the fragile economy is likely

for high-value venture deals for now.

to make these investors more risk-

CVCs keep deal participation highProportion of US VC deal count by nontraditional investor type30%

24.6% 25.6%

25%
20%

16.7%

15%

5%

Proportion of US VC deal value by nontraditional investor type
70%
58.5%

60%

47.0%

50%
14.4%

40%

10.5%

30%

11.0% 9.8%

20%

12.6%

10%

Deal value participation falls for all investor types

43.6%
31.3%
8.4%

10%

1.0% 0.9%

0%

48.3%
45.1%
34.9%
25.8%
3.8%

CVC investor
Other tourist investor

PE investor

Asset manager

CVC investor

Government/SWF

Other tourist investor

PitchBook-NVCA Venture Monitor*As of September 30, 2022

PE investor

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

0%

Asset manager
Government/SWF
PitchBook-NVCA Venture Monitor*As of September 30, 2022

30
PITCHBOOK-NVCA VENTURE MONITORExitsExit activity shows little sign of rebounding this year
US VC exit activity by quarter
$300

600

$250

500

$200

400

$150

300

$100

200

$50

100

$0

0
Q1

Q2

Q3

Q4

Q1

Q2

2017

Q3

Q4

Q1

2018

Q2

Q3

Q4

Q1

Q2

2019

Exit value ($B)

Q3

Q4

Q1

Q2

2020

Figma exit value ($B)**

Exit count

Q3

Q4

Q1

2021

Q2

Q3

2022*

Estimated exit countPitchBook-NVCA Venture Monitor*As of September 30, 2022**Announced exit on September 15, 2022

$14.0 billion in exit value was generated
across an estimated 302 exit events in
Q3, with few bright spots to speak of.

YTD exit activity sets expectation of a five-year low
US VC exit activity

1,868

Adobe’s announced acquisition of Figma,
a developer of a web-based design

an extended period of low exit activity
could discourage investors from recycling

2012

2013

2014

Exit value ($B)

capital back into the VC ecosystem.

Exit countShould the current environment remain,
to fall below $100 billion for the first time
population of unicorns as well, adding
further pressure on the market. The likely
exit path for unicorns has been the publicmarket, as few corporations are able andwilling to buy such highly valued targets.

2019

2020

2021

2022*

Figma exit value ($B)**
Estimated exit countPitchBook-NVCA Venture Monitor*As of September 30, 2022**Announced exit on September 15, 2022

we expect this year’s total exit deal value
since 2016. There remains a growing

2018

1,092

$85.4

2017

1,227

$781.52016of this year’s total exit value because

1,280$324.5

2015

1,239

$268.81,073$101.9is room for concern regarding the pace

1,020

$70.2

exit environment remains lethargic. There

1,113

$77.1

exits, this quarter showed the VC-backed

942

$74.7

Based on the $14.0 billion of completed

894$128.4

antitrust scrutiny before it is closed.

1,133$113.0though it will likely come up against$132.4platform, is a positive for the industry,

The overarching narrative of the frozen

in the public eye. The lack of liquidity

IPO market remains, with just fivethrough public markets could put

companies exiting via traditional IPOs

pressure on startups to return to equity

this quarter. Access to liquidity is criticalmarkets for additional financings andto both startups and their investors, andaccept investment at lower valuations

IPOs provide much-needed financing tocompared with prior financing rounds,

startups to continue their growth, albeit

severely diluting current shareholders.

31
PITCHBOOK-NVCA VENTURE MONITOR

Almost 50% of YTD exit value generated
by acquisitions

YTD share of exits via acquisition pushes
above prior year’s record low

100%

100%

Share of US VC exit value by type

Share of US VC exit count by type

Buyout90%

Buyout

90%

50%

40%

40%

2012

2022*

2021

2020

2019

2018

2017

0%
2016

0%
2015

10%
2014

10%
2013

30%
20%

2012

30%
20%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2020

60%

50%

2013

60%

2022*

Acquisition

2021

70%

2019

Acquisition

2018

70%

2017

Publiclisting

2016

80%

2015

Publiclisting

2014

80%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Until recently, special purpose acquisition

listings in Q1 2021. Much of the remaining

returning $1.6 billion to shareholders

companies (SPACs) were an active option

SPACs that have yet to complete

after it evaluated more than 100 targets

to create liquidity for investors. Theiracquisitions are nearing their two-year

and failed to complete an acquisition.

pervasiveness in the market has all but

time limit, at which point shareholders

Although some of the initial acquisition

disappeared as a result of increased

can opt to have their investment returned;

targets may have fallen through, publicly

scrutiny and proposed regulation by thesuch is the case with two SPACs launchedlisted SPACs represent sidelined capital

SEC. Only three SPACs completed listingby Chamath Palihapitiya’s firm, Socialthat is positioned to support distressed

this quarter, a far cry from the peak of 281

Capital, which announced that it will bestartups during slowdown.

Seed stage sees majority of YTD US
VC acquisitions

Median acquisition exit value remains
above historical figures

Share of US VC round count by round series where next round

Median US VC exit value ($M) by typeis an exit via acquisition
$800

D+
C

$600

B

$300

30%

$200

20%

$100

10%

$0

$66.6
2012

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

0%

$175.0Acquisition

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Buyout$100.0
$65.0

2022*

Angel

$353.6

2021

40%

$400

2020

Seed

2019

50%

$500

2018

A

2017

60%

2016

70%

2015

80%

$722.5

$700

2014

90%

2013

100%

Public listing
PitchBook-NVCA Venture Monitor*As of September 30, 2022

32
PITCHBOOK-NVCA VENTURE MONITOR

Fundraising
YTD US VC fundraising exceeds prior year’s record high
US VC fundraising activity

1,139

824

768
570

488

644

652

314

337

$23.3

$22.4

$38.2

$43.0

$51.2

$44.8

2012

2013

2014

2015

2016

2017

744
593

Capital raised ($B)

$60.5

$71.9

$88.4

$147.2$150.9

2018

2019

2020

2021

2022*

Fund countPitchBook-NVCA Venture Monitor*As of September 30, 2022

Given public market turbulence and frozen
avenues for liquidity, we expected LPs to
be concerned about their overexposure

Billion-dollar funds set record highShare of US VC fund count by size bucket

to this asset class and the potential for

100%

$1B+

timely returns negatively impacting

90%$500M-$1B

fundraising activity. However, US VC

80%$250M-$500M

fundraising has set a new annual high of

70%$100M-$250M

60%$50M-$100M

fundraising narrative has been centered

50%

Under $50M

on the last year’s momentum and the40%funds already in discussion prior to the30%

economic downturn. Entering the second

20%$150.9 billion, exceeding the 2021 fullyear figure by $147.2 million. Much of thehalf of the year, we are starting to seethat momentum atrophy, yet fundraisingremains relatively strong. $29.4 billion wasadded to the fundraising total since last

10%
0%
2012

2013

2014

2015

2016

2017

quarter’s report. LPs may feel compelled

2018

2019

2020

2021 2022*
PitchBook-NVCA Venture Monitor*As of September 30, 2022

to maintain their allocations with GPs tosecure access to future funds and avoid
costly due diligence efforts to identify new

billion, or 86.7% of Q3’s total invested

HC/FT, successfully closed funds withmanagers later.

capital, was committed to 66 funds

more than $1 billion in commitments,

led by established managers. What’s

highlighting the fundraising advantage

Further examination of Q3’s fundraising

more, this quarter some of the largest

of GP incumbents. Going forward we

activity shows a large divide in theplayers in the space, including Bessemer

expect higher concentrations of capital

success of established managers andVenture Partners, Battery Ventures,committed to established managers andemerging managers. Roughly $22.0

Lightspeed Venture Partners, and Oak

a greater prevalence of larger multistage

33
PITCHBOOK-NVCA VENTURE MONITOR

Investors look to experienced fundmanagers to mitigate risk

US VC cumulative dry powder is at an alltime highShare of US VC raised by emerging or experienced managers
100%
90%
80%

US VC dry powder ($B) by vintage

Experienced firm
fund value ($B)

$300

Emerging firm
fund value ($B)

$250

Total
2022

70%

2021
2020

$200

60%
50%

2019

40%

2018

Overhangby vintage

$150

2017

$100

30%
20%

2016
2015

$50

10%

2014

Cumulative overhang0%

PitchBook-NVCA Venture Monitor*As of September 30, 2022

2022*

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2021

2022*

2020

2019

2018

2017

2015

2016

2014

2013

2012

$0

PitchBook-NVCA Venture Monitor*As of June 30, 2022

funds increasing the throughput of deals

mega-deals or unicorns. Aiding the VC

into the ecosystem. Much of those returns

through the venture lifecycle.

market’s outlook is the estimated $13.0

are likely derived from holdings in priorbillion in net cash flows to investors

IPOs that only recently cleared their

The surplus of roughly $290.1 billion in dry

through the first half of this year, a highlockup period or were finally sold by GPs,

powder is a testament to the strength ofamount considering the fast pace ofhighlighting the need for exits to remain

this asset class and its continued growth.

contributions during the period. LPs arestrong to further boost the VC market.

It should be noted that the majority ofcontinuing to generate strong returns

Moreover, those cash flows bolster thedry powder will target more-traditionalfrom prior investments, supporting theattractiveness of established managers

stages of venture, with less invested inprospect of that capital being recycled

and will reinvigorate investor participation.

Lethargic first-time fundraising activity
presumed to fall below 2014 levels

Micro-fund closings slow from 2021
US VC micro-fundraising activity

US VC first-time fundraising activity

498

307

221

330

Capital raised ($B)

Fund countMicro-fund value ($B)

PitchBook-NVCA Venture Monitor*As of September 30, 2022

$5.0

$4.5

$6.8

$3.3

2019

2020

2021

2022*

2021 2022*

$4.9

$18.3

2020

2018

$8.6

2019

$4.1

$13.7

2018

2017

$12.5

2017

281

287

$3.1

$10.1

2016

$2.9

$6.9

2015

2014

$4.3

2014

$2.3

$5.4

2013

$9.2

$3.0

2012

338

167

2013

149

100

$1.9

108

323

303

287

2016

236

$3.3

213

$2.4

110

202

211

2012

180

259

2015

246

Micro-fund countPitchBook-NVCA Venture Monitor*As of September 30, 2022

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PITCHBOOK-NVCA VENTURE MONITOR

Q3 2022 league tables
Most active investors
angel & seed*

Most active investors
early stage*

Most active investors
late stage*

1

10X Capital

35

1

Gaingels

17

1

Alumni Ventures

13

2

SOSV

20

1

Andreessen Horowitz

17

2

SOSV

10

3

Plug and Play Tech Center

19

3

Alumni Ventures

11

2

Insight Partners

10

4

Y Combinator

18

3

FJ Labs

11

4

Andreessen Horowitz

94

Alumni Ventures

18

3

8VC

11

5

Gaingels8

6

Elevate Ventures

16

6

Tiger Global Management

105Bessemer Venture Partners

87Service Provider Capital

126

10X Capital

10

7

Valor Equity Partners

78Connecticut Innovations

11

8

Big Brain Holdings

9

7

10X Capital

7

8

Andreessen Horowitz

118

Plug and Play Tech Center

9

7

8VC

7

10

Gaingels

10

8

GV

9

10

Ischyros New York6

11

Soma Capital

98Founders Fund

910

Tiger Global Management

611

FJ Labs

98Consensys Mesh

910

Triangle Tweener Fund

6

13

Techstars

813

Y Combinator

810

Sequoia Capital

6

13

MaC Venture Capital

8

13

FTX Ventures

8

10

Commerce Ventures

6

13

Liquid 2 Ventures

8

13

Multicoin Capital

8

15Intel Capital

5

16

Gradient Ventures

7

13

Kleiner Perkins

815

Frazier Group5

16

Hustle Fund

7

13

General Catalyst

8

15

Eight Roads

5

16

Coinbase Ventures

7

13

Coinbase Ventures

8

15

GV

5

19

500 Global

619

Lux Capital

7

15BlackRock5

19

Tribe Capital

620

Jump Crypto

6

19

Ulu Ventures

6

20

MH ventures6

19

First Round Capital

6

20

Fin Capital

6

19

Innovation Works

6

20

500 Global

6

19

BoxGroup

6

20

Techstars

6

19

Balaji Srinivasan

620

Sequoia Capital

6

20

Elad Gil

6

20Franklin Templeton

6

PitchBook-NVCA Venture Monitor*As of September 30, 2022

PitchBook-NVCA Venture Monitor*As of September 30, 2022

35
PITCHBOOK-NVCA VENTURE MONITOR

PitchBook-NVCA Venture Monitor*As of September 30, 2022

Methodology
Deals
We include equity investments into startup companies from an outside source. Investment does not necessarily have to be taken from an
institutional investor. This can include investment from individual angel investors, angel groups, seed funds, VC firms, corporate venture firms,
corporate investors, and institutions, among others. Investments received as part of an accelerator program are not included; however, if theaccelerator continues to invest in follow-on rounds, those further financings are included. All financings are of companies headquarteredin the US, with any reference to “ecosystem” defined as the combined statistical area (CSA). We include deals that include partial debt
and equity.
Angel & seed: We define financings as angel rounds if there are no PE or VC firms involved in the company to date and we cannot determine
if any PE or VC firms are participating. In addition, if there is a press release that states the round is an angel round, it is classified as such.
Finally, if a news story or press release only mentions individuals making investments in a financing, it is also classified as angel. As for seed,
when the investors and/or press release state that a round is a seed financing, or it is for less than $500,000 and is the first round as reported
by a government filing, it is classified as such. If angels are the only investors, then a round is only marked as seed if it is explicitly stated.
Early stage: Rounds are generally classified as Series A or B (which we typically aggregate together as early stage) either by the series of stock
issued in the financing or, if that information is unavailable, by a series of factors including: the age of the company, prior financing history,company status, participating investors, and more.
Late stage: Rounds are generally classified as Series C or D or later (which we typically aggregate together as late stage) either by the seriesof stock issued in the financing or, if that information is unavailable, by a series of factors including: the age of the company, prior financing
history, company status, participating investors, and more.
Nontraditional investors: “CVC” includes rounds executed by established CVC arms as well as direct equity investments by corporations into
VC-backed companies. “PE” includes VC deals by investors whose primary classification is PE/buyout, growth, mezzanine, or other private
equity. “Crossover” investors are a subset of nontraditional investors—specifically asset managers, hedge funds, mutual funds, and sovereign
wealth funds—that have been active in VC investment across any stage. They are referred to as crossover because these investors are likely to
be participating at the late stages directly prior to an exit.
Venture debt: The venture debt dataset is inclusive of all types of debt products raised by VC-backed companies, regardless of the stageof company. In mixed equity and debt transactions, equity is excluded when the amount is of known value. Financings that are solely debt
are included in this dataset, though not incorporated into the deal activity dataset used throughout the report. Mixed equity and debt
transactions will be included in both datasets.

Exits
We include the first majority liquidity event for holders of equity securities of venture-backed companies. This includes events where there
is a public market for the shares (IPO) or the acquisition of majority of the equity by another entity (corporate or financial acquisition). This
does not include secondary sales, further sales after the initial liquidity event, or bankruptcies. M&A value is based on reported or disclosed
figures, with no estimation used to assess the value of transactions for which the actual deal size is unknown. IPO value is based on the premoney valuation of the company at its IPO price. One slight methodology update is the categorical change from “IPO” to “public listings” toaccommodate the different ways we track VC-backed companies’ transitions to the public markets. To give readers a fuller picture of thecompanies that go public, this updated grouping includes IPOs, direct listings, and reverse mergers via SPACs.

Fundraising
We define VC funds as pools of capital raised for the purpose of investing in the equity of startup companies. In addition to funds raised bytraditional VC firms, PitchBook also includes funds raised by any institution with the primary intent stated above. Funds identifying as growthstage vehicles are classified as PE funds and are not included in this report. A fund’s location is determined by the country in which the fund’sinvestment team is based; if that information is not explicitly known, the HQ country of the fund’s general partner is used. Only funds basedin the United States that have held their final close are included in the fundraising numbers. The entirety of a fund’s committed capital is
attributed to the year of the final close of the fund. Interim close amounts are not recorded in the year of the interim close.

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PITCHBOOK-NVCA VENTURE MONITOR