State of CVC Q3’23 Report

State ofCVC Global | Q3 2023 Global data and analysis on CVC-backed dealsand funding to private market companies Guess Less.Win More. CB Insights helps the world’s leadingcompanies make smarter technologydecisions with data, not opinion. Our Technology Insights Platform providescompanies with comprehensive data, expertinsights, and work management tools thatenable them to discover, understand, andmake technology decisions. ▮▮▮▮IIISign up for a free trial API, Data Feeds,and Integrations Use CB Insights data, everywhere. Enrich your CRMto prioritize top prospects, partners,and investments wherever you manage deals. Build better modelsto rank your targets based onhow they're projected to perform. Collaborate smarter, fasterwith real-time alerts andshare information with applications you're alreadyworking in. Request a demo Make your brand moresearchable. Findable.Buyable. Partnerable.Investable. Complete a free Analyst Briefing Survey*and get in front of enterprise tech buyers,M&A teams, and investors. *Survey takers have increased their lead generation 3x on average. ▮▮▮▮▮IIIApply here From CB Insights, we get the data we need tohelp my teamuncover the best startupswithineach vertical in Europe and beyond. Dr. Andreas NemethCEO, UNIQA Ventures View success story→ Dig Deeper. CB Insights clients can find and trackcompanies using our analyst-curatedExpert Collections. TelehealthE-CommerceStore Management Supply Chain &Logistics Tech TLDRState of CVC Your rundown onCVC in Q3’23 $1.1BCVC-backed retailtech funding. $8.1BCVC-backedfunding to USstartups. $13.3B -16%QoQ drop in CVC-backed deals. 30 $100M+ mega-rounds. Global CVC-backedfunding. CVC-backed funding fell10% quarter-over-quarter(QoQ), from $14.8B to$13.3B. This countered thebroader venture market,which saw fundingincrease 11% QoQ. Retail tech was the onlysector to see CVC-backedfunding increase QoQ, upover 20%. In 2023 so far,retail tech has a medianCVC-backed deal size of$10.5M — higher thandigital health or fintech. CVC-backed deals fell 16%QoQ, from 913 to 764.Global CVC-backed dealcount has not been thatlow since 2018. 41% of all CVC-backedfunding went to $100M+mega-round deals in Q3’23— the highest share sinceQ2’22. This occurred amida QoQ uptick in CVC-backed mega-roundfunding and deals. US CVC-backed fundingincreased 9% QoQ, from$7.4B to $8.1B. The USalso saw a majority (61%)of CVC-backed funding inQ3’23. Meanwhile, Asiaand Europe saw CVC-backed funding drop QoQ. Median CVC-backed dealsizes have fallen 12% in2023 so far. This has beendriven by a drastic declinein median late-stage dealsize, down 41% to just$50M this year. Q3’23 was the lowestquarter for CVC-backedfunding since 2018. Thiscoincides with a drop inthe number of active CVCinvestors between 2022and 2023. The quarter’s largest dealswent to Databricks ($504MSeries I, backed by CapitalOne and NVIDIA) andAscend Elements ($460MSeries D, backed byHitachi). Retail tech’s strongshowing among CVCsbucks the trend seen inthe broader market, whereventure funding to retailtech fell in Q3 to its lowestpoint in nearly a decade. The top US-based CVCs bycompany count in Q3 wereSamsung NEXT (11), GV(10), Intel Capital (8), andSalesforce Ventures (8) . Q3’s top CVC by companycount was Mitsubishi UFJCapital (16). See the data→ See the data→ See the data→ See the data→ See the data→ ContentsState of CVC Europe100United Kingdom105Germany109France113Israel117 Geographic Trends 57 US58Silicon Valley63New York67Los Angeles71Boston75Asia79China84India88Singapore92Japan96 Global Trends Investment Trends State of CVC| Global Trends | Investment Trends State of CVC| Global Trends | Investment Trends CVC-backed funding falls 10% QoQ, lowest since 2018 State of CVC| Global Trends | Investment Trends State of CVC| Global Trends | Investment Trends Asia’s CVC deal share ticks up 3 percentage points QoQ State of CVC| Global Trends | Investment Trends YTD average and median CVC-backed deal sizes fall State of CVC| Global Trends | Investment Trends CVC-backed median deal size falls globally in 2023 YTD State of CVC| Global Trends | Investment Trends Mega-round funding and deals tick up QoQ State of CVC| Global Trends | Investment Trends State of CVC| Global Trends | Investment Trends CVC-backed mega-round deals increase QoQ in the US and Europe State of CVC| Global Trends | Investment Trends CVC-backed mega-round funding share increases 5 percentage points QoQ State of CVC| Global Trends | Investment Trends Early-stage deal share continues to dominate in 2023 YTD State of CVC| Global Trends | Investment Trends Asia leads across most deal stages in Q3’23 State of CVC| Global Trends | Investment Trends Median late-stage deal size plummets 41% in 2023 YTD Global: Top seed/angel deals in Q3’23 Global: Top Series D deals in Q3’23 State of CVC| Global Trends | Investment Trends Sector Spotlights Fintech State of CVC| Sector Spotlights | Fintech