Black-founded startups in the U.S. secured $2.3B in venture funding in 2022, less than half of the previous year's record-setting tally of $5.1B, per Crunchbase. The venture funding pullback severely impacted funding available for Black-founded startups, ending the year with only a 1.1% share of the total VC funding deployed, down from 1.5% in 2021. More: - In Q3 2022, Black-founded startups nabbed $184M in venture funding, a fraction of the $1.3B tally from Q1 in the same year.
- Funding recovered in the last quarter slightly, rising to $274M.
- Three Black-led startups cemented their status as unicorns in 2022, half as many as the previous year.
Zoom out: - VC funding deployment overall in the U.S. slowed by over a third, dropping from $337B in 2021 to $214B in 2022.
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European startup valuations started dropping in the latter half of 2022. Despite the drop-off, median valuations of early-stage startups registered a 23.4% YoY increase over 2021's values. Median early-stage valuations figures peaked at €7.7M ($8.2M) in Q2 2022 before dropping to €5.2M ($5.5M) in Q4. More: - Median valuations of late-stage startups slid from €16.8M ($17.8M) in Q1 to €11.4M ($12.1M) in Q4.
- Per Crunchbase, valuations of late-stage startups are likely to see further cuts in 2023.
- Only 15.2% of overall VC deals consisted of down rounds, indicating that many startups opted for structured financing instead of raising equity funding at lower valuations.
- In 2023, Pitchbook expects the number of down rounds to increase.
- 47 startups cemented their status as unicorns across 2022.
- However, due to the macroeconomic volatility, the average unicorn valuations dropped from €3.6B ($3.8B) to €3.3B ($3.5B).
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Global e-commerce accelerator Spreetail secured $208M in VC funding. McCarthy Capital provided the funding along with other investors. Spreetail intends to use the proceeds to further develop its technology and expand brand partnerships. More: - Spreetail offers full-service e-commerce solutions, supporting manufacturers in listing their items on retail platforms such as Amazon, eBay, Walmart, and Target.
- The firm reported $1B in revenue in 2021, at the same time when U.S. e-commerce sales hit $870B.
- The firm laid off 220 employees last October.
- Spreetail's fundraising coincides with the announcement of the company's acquisition of marketing business Buy Box Experts.
Zoom out: - Spreetail's fundraising is the second-largest ever for a Lincoln, Nebraska-based company, behind only Monolith's $300M funding round from last year.
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Wisconsin Gov. Tony Evers included a $75M fund of funds in the state's proposed 2023-25 budget. Per the proposal, Wisconsin Economic Development Corp. (WEDC) will manage the fund of funds. Investments into other VC funds are capped at $18.75M. More: - The Republican-controlled Legislature will need to approve the proposal.
- Evers' proposal of a $100M VC program was omitted from the final budget for 2021-23.
- The proposed program will build upon the state's existing $25M Badger fund of funds program, launched in 2013 by then-Gov. Scott Walker.
- VC funds being backed by the program will need at least a one-to-one match from private investors.
- 20% of the funds will be earmarked for investing in minority-owned and women-owned startups.
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Sunwoda Electric Vehicle Battery, the electric-vehicle battery unit of Sunwoda Electronic, is in talks with potential investors to raise a $580M (4B yuan) funding round. The Chinese firm aims for a valuation of over $4.3B (30B yuan). Sunwoda's fundraising attempts come as the company prepares for an IPO on Shanghai's Star Board exchange. More: - Sunwoda EVB supplies battery components to automakers including Volvo, XPeng, and Dongfeng.
- Previous backers of the firm include Meituan, Broad Vision Funds, and Shenzhen Capital Group.
- Since its founding in 2008, the firm has raised over $870M (6B yuan) in venture funding to date.
- In November, parent company Sunwoda Electronic — listed in Shenzhen — raised $440M through a depositary receipt sale.
Zoom out: - Earlier this month, peer Zeekr Intelligent Technology secured $750M.
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Philippines-based fintech Maya is looking to raise a $150M funding round at a $2B valuation, per Bloomberg. The funding is intended to increase the firm's growth prospects and may pave the way for an IPO listing in the coming years. More: - Maya facilitates end-to-end digital payment services, including e-wallets, savings accounts, credit offerings, and crypto transactions.
- The company was founded as a digital subsidiary of telecom giant PLDT, which later reduced its investment to a non-controlling stake.
- Sources informed Bloomberg that the firm's new fundraiser is drawing interest from existing and new backers.
- Maya has been previously backed by KKR, EDBI, Tencent, World Bank's International Finance Corp., and Susquehanna International Group (SIG).
- SIG led the firm's $140M funding round last year, valuing the firm at nearly $1.4B.
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- Cercano Management anticipates a rise in direct lending this year and is expanding its private credit division by recruiting three new personnel. The firm, formerly known as Vulcan Capital, spun out from Microsoft co-founder Paul Allen's family office.
- Lightspeed Venture Partners led a $43M Series B funding round into the AI-powered content creation platform Tome.
- Payroll, HRIS, and benefits API platform Finch secured $40M through a General Catalyst and Menlo Ventures-led Series B funding round.
- Payments solutions provider DataMesh Group raised $30M in Series A funding led by NAB Ventures, in a bid to expand its reach in the payments processing industry.
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. |
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