State of Venture Q3’23 Report

State ofVenture Global | Q3 2023 Global data and analysis on dealmaking, funding,and exits by private market venture 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 trialSign up for a free trial Valuations& Deal Terms Compare private companies andprice deals with speed and scale. 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 hereSign up for a free trial CB Insights has been particularly useful for runningsearches around non-traditional performance metrics....This gives us a morenuanced understanding of acompany’s healthand refines our knowledge of the bestopportunities. Kumar DandapaniFormer Head of Data Science, Norwest Venture Partners Dig Deeper. CB Insights clients can find and trackcompanies using our analyst-curatedExpert Collections. TelehealthE-CommerceStore Management Supply Chain &Logistics Tech TLDRState of Venture Your rundown onventurein Q3’23 $64.6B 38%Of exits go toEurope-basedcompanies. 24% 12 5 Of the 10 largestdeals go to theEVindustry. Increase in globalIPOs QoQ. New unicorns in Q3.Lowest level since2016. Q3 venture funding.Up 11% QoQ. Global venture dollarsreboundedto $64.6B inQ3’23, an 11% increasefrom the previous quarter.Nearly half of the quarter’sfunding came from mega-rounds of $100M or more. Q3’23 saw 126 companiesgo public via IPO—up 24%compared to 102 in Q2’23.Thispointstoanoticeableimprovement in the IPOmarket. The top 2 IPOsby valuation went toInstacart ($9.9B) andKlaviyo($9.3B), bothbased in the US. Half of Q3’s largestdealsfocused on electric vehicleinfrastructure, highlightinginvestors’ sustainedinterest in the tech. Q3’23 saw the birth of only12 unicorns globally, a 40%drop QoQ and the lowestquarterly birth count inover 6 years. Among regions, Europe ledin share of global exits forthe fourth quarter in a rowat 38%. The US was closebehind at 35%. Some of the largestventure deals wenttoNorthvolt($1.2B) andRedwood Materials ($1B),both in the lithium-ionbattery space. While unicorn births sawsharp drops in most majorregions, the US continuedto lead, accounting for justunder half of new unicorns(5). Despite promising signsfrom the IPO market, theoverall number of exitsdecreased for the 7thstraight quarter, driven bydeclines in M&A. However, global dealvolume fell 11% QoQ to6,111 deals in Q3’23—the6th straight quarter indecline and the lowestlevel since 2016. See the data→ See the data→ See the data→ See the data→ See the data→ ContentsState of Venture Europe175United Kingdom181Germany185France189Israel193Netherlands197Sweden201LatAm205Mexico211Brazil215Chile219Africa223Nigeria229South Africa233Oceania237 Investment Trends10Unicorns33Exit Trends39Investors45 Sector Spotlights49 Fintech50Retail Tech60Digital Health70 Geographic Trends80 US81Silicon Valley87New York91Los Angeles95Boston99 Global Trends Investment Trends State of Venture|Global Trends|Investment Trends Venture funding reaches $194B in 2023 so far, less than half of 2022 levels State of Venture|Global Trends|Investment Trends Funding ticks up 11% from Q2’23, while deals slide for 6th straight quarter State of Venture|Global Trends|Investment Trends US-based companies raise $32B in Q3'23, accounting for 50% of funding State of Venture|Global Trends|Investment Trends The US and Asia lead in deal share in Q3'23, collectively accounting for68% of deals State of Venture|Global Trends|Investment Trends VCs hold lead in investor deal share in Q3'23 State of Venture|Global Trends|Investment Trends Both average and median deal size are trending down in 2023 so far State of Venture|Global Trends|Investment Trends Median deal size falls in the US, but rises in Asia, Europe, and Canada State of Venture|Global Trends|Investment Trends Median deal size is down across all investor categories so far this year State of Venture|Global Trends|Investment Trends Funding from $100M+mega-rounds rises by 47% QoQto $29.6B State of Venture|Global Trends|Investment Trends State of Venture|Global Trends|Investment Trends The US and Europe see $100M+ mega-rounds increase QoQ State of Venture|Global Trends|Investment Trends Mega-rounds account for 46% of total funding in Q3’23—the highest sharesince Q2’22 Global: Top equity deals in Q3’23 State of Venture|Global Trends|Investment Trends Early-stage rounds continue to dominate overall deal share State of Venture|Global Trends|Investment Trends Asia leads in early-, mid-, and late-stage deal sh