Venture Pulse Q1 2022

After achieving a fourth straight record-high last quarter, global VC investment declined in Q1’22 —although the total amount of VC investment remained incredibly strong overall. The amount of funding available in the market continues to be substantial, particularly in the US and Europe. This could help keep VC investment relatively stable over the near-term despite growing concerns related to the rapidly evolving Russia-Ukraine war, an increase in geopolitical tension, ongoing supply chain challenges, rising inflation and interest rates, and another COVID-19 surge.

Heading into Q2’22, VC investment is expected to remain relatively stable globally given the amount of funding available in the market, although VC investors will likely become more cautious in their investment decision-making —particularly alternative investors like family offices. Seed and early-stage companies will likely take the biggest hit as investors focus on later stage deals in order to de-risk their portfolios. IPO activity is expected to remain subdued in Q2’22 given the heightened geopolitical uncertainty and the ongoing volatility in the capital markets.In this quarter’s edition of Venture Pulse, we look at these and a number of other global and regional trends, including:

• The increasing number of factors driving uncertainty in the VC market
• The slowdown in IPO activity globally
  
• The growing investment in all aspects of cybersecurity
  
• The strengthening focus on domestic production in light of supply chain challenges