US Q1-2023 Venture Pulse - KPMG
US Q1-2023 Venture Pulse - KPMG
US Q1-2023 Venture Pulse - KPMG
Q12023
Global analysis of venture funding
April 19, 2023
Welcome message
Welcome to the Q1’23 edition of KPMG Private Enterprise’s addition to alternative energy, defense-focused companies
Venture Pulse — a quarterly report highlighting the major continued to attract attention. B2B productivity also remained
trends, opportunities, and challenges facing the venture capital front of mind for investors given the growing pressure on You know KPMG. You might not know KPMG
market globally and in key jurisdictions around the world. companies to become more efficient and the continuing Private Enterprise.
challenges of hybrid work. Artificial Intelligence generated the
What a difference a year makes. After reaching a peak of over KPMG Private Enterprise advisers in
most buzz this quarter, if not investment, as the ripples from
$200 billion in Q1’22, global VC investment fell in each KPMG firms around the world are dedicated
OpenAI’s launch of ChatGPT made their way through all
subsequent quarter. In Q1’23, total VC investment globally was to working with you and your business, no
markets. Generative AI will likely be a space to watch for the
well under $60 billion. With the level of uncertainty in the global matter where you are in your growth
rest of 2023.
market intensifying — from increasing interest rates to domestic journey — whether you’re looking to reach
and geopolitical challenges, significant economic concerns, war With no end in sight to the uncertainty in the market, Q2’23 is new heights, embrace technology, plan for
in the Ukraine, and concerns about the stability of the global expected to be another tough quarter for VC investment an exit, or manage the transition of wealth
banking system — no region was particularly immune to the globally — although there is some hope for a more positive or your business to the next generation.
shifting market forces. second half of the year, particularly in Asia.
Both startups and corporates continued to batten down the In this quarter’s edition of Venture Pulse, we look at these and a
hatches in Q1’23, prioritizing cost-cutting and operational number of other global and regional trends, including:
Jonathan Lavender
efficiencies and laying off staff in order to reduce their spend. Global Head
• The strong interest in alterative energy and EV solutions
VC investors also tightened their purse strings, enhancing their KPMG Private Enterprise
KPMG International
scrutiny of potential deals quite significantly. The alternative • The continued focus on cost-cutting and finding efficiencies
energy and EV sectors were the brightest lights of the quarter,
with companies from these interconnected sectors attracting the • The relative resilience of early-stage deals Conor Moore
largest share of big funding rounds, including Generate ($880.6 Head of KPMG Private Enterprise in the
• The growing focus on generative AI Americas,
million), Zeekr ($750 million), a Xpansiv ($525 million), Global Leader, Emerging Giants, KPMG
SolarSpace ($442 million), and EcoCeres ($400 million). We hope you find this edition of Venture Pulse insightful. If you Private Enterprise, KPMG International &
Partner, KPMG in the US
would like to discuss any of the results in more detail, please
Funding for pre-seed and Series A deals showed the most contact a KPMG adviser in your area. Lindsay Hull
resilience this quarter as VC investors focused on making Senior Director, Emerging Giants Global
smaller bets on startups with less questionable valuations. In Network, KPMG Private Enterprise,
KPMG International
Unless otherwise noted, all currencies reflected throughout this document are in US dollar.
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2
Contents
Global US
• VC investment slows to $57.3 billion • VC deal value plummets further to $31.7 billion
across 6030 deals across 2217 deals
• Median deal size for series D+ • Median deal size for early series rounds remain
plummets to $47.6 million resilient
• Funding to healthcare and energy • late-stage valuations plummet from $800+ million to
startups remain more resilient
4 19
only $250 million
• Corporate VC participation falls for • Exits slide to lowest quarterly tally in years
5th consecutive quarter • LP’s concentrate capital on proven VC funds
• Global venture fundraising stalls
following strong 2022
• Top 10 deals dominated by Fintech
(3) and cleantech (3) startups Asia
• Venture Capital investment falls to
Americas •
$13.5 billion across 1773 deals
Median deal sizes begin to slide —
• VC-backed investment falls to particularly for later rounds
$33.1 billion across 2542 deals • Earlier-stage deals stay surprisingly
• After relative resilience,
34 47 72
resilient
dealmaking slides in Canada • First-time fundraising remains more
• VC deal value and volume fall in resilient than other regions
Mexico, mirroring global trends • Chinese companies pull in 8 of the
• Brazil sees slight bump in top 10 deals in Asia
volume, while deal value drops
in Q1 Europe
• Largest 10 deals in Americas all
come from the United States • Investment drops again — to $9.8 billion invested on 1533 deals
• VC down-rounds increase as a percentage of all deals
• Median deal size for series D+ drops to $60.5 million
• Median pre-money valuations slide — particularly for later stage rounds
• UK sees overall slowdown despite outlier rounds
• Deal value falls in the Nordics following robust 2022
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3
Global US | Americas | Europe | Asia
Globally, in Q1’23
VC-backed companies
raised $57.3B across
6,030 deals
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4
Global US | Americas | Europe | Asia
1 https://workspace.google.com/blog/product-announcements/generative-ai
2 https://www.cnbc.com/2023/03/16/microsoft-to-improve-office-365-with-chatgpt-like-generative-ai-tech-.html
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5
Global US | Americas | Europe | Asia
VC investors continued to shy away from the consumer retail sector in Q1’23. The real estate Globally, VC investment will likely remain soft heading into Q2’23 as VC investors across
sector also took a hit given the impact of high interest rates on the real estate market more jurisdictions continue to show caution given the significant degree of uncertainty in the market.
broadly. If VC investment remains focused elsewhere, hard hit sectors could see both Investment in consumer retail and D2C companies will likely remain very dry. Alternative energy
traditional companies and startups beginning to fail — or being pressured by their investors to and greentech, defence, cybersecurity, and B2B services will likely be the most resilient areas of
sell in order to avoid failure. Given the robust funding environment of the last couple of years, investment globally, while generative AI could see a spike in investment given the strong spotlight
this shakeout of the market could separate out the winners in the harder hit industries in shone on the space in Q1’23. Longer term, drone technologies could also see strengthening
different regions, with only the best companies managing to weather the storm while others fall interest and VC investment — not only in the defence and logistics spaces, but also in emerging
by the wayside. areas like agtech.
IPO window could stay closed through the end of the year; Asia may be the exception VC investors have become more comfortable investing in developing nations over the past few
years — with areas like South America, Latin America, and Africa increasingly attracting funding.
The IPO window remained firmly shut in Q1’23, with very little indication that a reopening will be
While these regions many not be a priority for investment in the short term, they will likely
on the horizon within the next few months. Investor sentiment, particularly in the Americas and
continue to grow on the radar of VC investors long term.
Europe suggests that the IPO window won’t open until late in the year or, quite possibly, not
until 2024. Given their unique position globally, China and Hong Kong could be the exceptions.
While Q1’23 saw IPO activity decline in both cases, there is some positive sentiment that
regulatory changes in both locations could spark some renewed interest. This is particularly true
with respect to the new 18C listing rules in Hong Kong — which make it easier for companies
focused on next gen technologies, advanced hardware and software, new energy solutions, and
agritech to list on the HKSE3.
3 https://www.mayerbrown.com/en/perspectives-events/publications/2023/03/hong-kongs-new-listing-regime-for-specialist-technology-companies-takes-effect-on-31-march-2023
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6
Global US | Americas | Europe | Asia
“
Global venture financing
2015–Q1'23 There are so many things
The first quarter of 2023 recorded an even happening at once right now that
$250 16,000
steeper downturn in the volume of venture it’s difficult to even try to predict
financing worldwide, across all stages. where the world is going. It’s not
14,000 Although the downturn has been ongoing for only the geopolitical challenges.
some time now, markets and players are still It’s also the way the world
$200
grappling with assessing overall conditions reacted to those, to rising gas
12,000
and various factors, which has led to a lack of prices, and to the impact of
resolution thus far. Key challenges still inflation on everything. For the
$150
10,000 include: VC market, the rise in interest
rates is also an enormous factor.
• Any further economic slowing to the point
8,000 Cash is quickly becoming more
of recession in the US and the UK, and
expensive. Heading into the
any other economic slowdowns in
$100 second quarter the strong interest
6,000 emerging economies such as China and in alternative energy, EV
India solutions and the growing focus
”
4,000 • The ongoing ramifications of international on generative AI will be areas to
$50 tensions, especially as they pertain to watch.
trade and collaboration
$100.5 2,000
$113.2
$158.7
$177.6
$194.0
$210.7
$177.6
$151.7
$104.0
$41.4
$40.9
$57.4
$40.8
$51.0
$62.5
$42.3
$40.4
$39.3
$53.3
$59.3
$58.7
$79.3
$94.9
$78.5
$99.8
$79.5
$72.8
$89.3
$86.2
$78.2
$76.4
$86.0
$57.3
• Volatility in financial markets leading to an
unwelcoming climate for public listings
$0 0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 • Changes in regulations and other policies
2015 2016 2017 2018 2019 2020 2021 2022 2023 that could impede cross-border
dealmaking or complexify M&A
Deal value ($B) Deal count Angel & seed Early VC Later VC Venture growth Jonathan Lavender
Global Head
KPMG Private Enterprise
KPMG International
Source: Venture Pulse, Q1'23. Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, April 19, 2023
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7
Global US | Americas | Europe | Asia
$30 100%
90%
$25 Up
80%
70%
$20
60%
$13.8
$15 50%
Flat
40%
$10
30%
$6.0
$5 20%
$4.4
10% Down
$1.5
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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8
Global US | Americas | Europe | Asia
$120
$100
$80
$60
$47.6
$40
$34.0
$20 $20.00
$9.2
$0.3
$2.1
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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9
Global US | Americas | Europe | Asia
$1,000
$900
$800
$700
$600
$500
$400 $394.3
$300
$200
$143.0
$100
$68.3
$28.1
$0 $2.6 $9.1
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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10
Global US | Americas | Europe | Asia
35,000 $700
30,000 $600
25,000 $500
20,000 $400
15,000 $300
10,000 $200
5,000 $100
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Series D+ Series C Series B Series A Angel & seed Series D+ Series C Series B Series A Angel & seed
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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11
Global US | Americas | Europe | Asia
“
Global financing trends to VC-backed companies by sector Global financing trends to VC-backed companies by sector
2015–2023*, number of closed deals 2015–2023*, VC invested ($B)
Generative AI is a hugely
100% 100% exciting space. More and more
Transportation companies are launching with
various offerings so I would
90% 90%
Commercial expect increased investment
Products & in the space and the
80% Services 80%
Consumer
development of a robust
Goods & ecosystem for how to use
70% Services 70% generative AI for good. At the
Software
same time, we’re also going to
60% 60% see a lot of focus on the more
Pharma & concerning facets of
Biotech generative AI including both
50% 50%
Other legal and ethical. It’ll definitely
40%
be an interesting space to
40%
watch over the next few
Media
”
quarters.
30% 30%
IT Hardware
20% 20%
HC Services &
10% Systems 10%
HC Devices &
0% Supplies 0%
2023*
2015
2016
2017
2018
2019
2020
2021
2022
2023*
2015
2016
2017
2018
2019
2020
2021
2022
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12
Global US | Americas | Europe | Asia
3,000 14,000
$60
$80 12,000
2,500 $50
10,000
$60 2,000
$40
8,000
1,500
$40 $30
6,000
1,000
$20
4,000
$20
500 1,906
$105.8
$110.7
$17.9
$18.3
$30.9
$17.6
$26.3
$39.7
$19.7
$18.9
$16.1
$25.2
$30.7
$24.4
$39.2
$59.7
$41.8
$50.5
$35.1
$33.4
$38.3
$42.9
$41.3
$39.7
$52.0
$57.5
$81.4
$82.6
$88.1
$75.1
$50.6
$42.1
$22.8
$10 2,000
$30.0
$28.1
$25.7
$37.5
$33.8
$37.0
$69.6
$56.0
$5.8
$0 0
$0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023*
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Deal value ($B) Deal count
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook,
April 19, 2023 April 19, 2023
Note: The capital invested is the sum of all the round values in which corporate venture capital investors participated, not the amount that corporate
venture capital arms invested themselves. Likewise, deal count is the number of rounds in which corporate venture firms participated.
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13
Global US | Americas | Europe | Asia
$70 $450
250 1,000
$400
$60
$350
200 800
$50
$300
$200
$30
100 400
$150
$20
$100
50 200
$10
$125.5
$112.1
$158.2
$171.9
$239.8
$304.7
$439.2
$302.5
$405.9
$18.5
$12.7
$28.3
$11.8
$17.3
$13.8
$22.0
$28.0
$22.6
$39.6
$21.4
$18.5
$31.9
$25.9
$20.8
$21.1
$30.8
$33.8
$55.8
$64.2
$70.3
$69.2
$50.5
$44.8
$18.6
$18.8
$11.9
$23.8
$37.1
$32.3
$46.0
$26.9
$30.0
$69.3
$23.6
$46.5
$39.4
$37.1
$72.0
$30.0
$55.8
$65.0
$78.1
$58.4
$45.4
$76.9
$83.9
$73.7
$89.6
$46.4
$20.3
$50
$8.9
$6.7
$8.4
$6.8
$4.0
$4.9
$0 0 $0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Exit value ($B) Exit count
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook,
April 19, 2023 April 19, 2023
Note: PitchBook defines a unicorn venture financing as a VC round that generates a post-money valuation of $1 billion or more. These are not necessarily Note: Exit value for initial public offerings is based on pre-IPO valuation, not the size of the offering itself.
first-time unicorn financing rounds, but also include further rounds raised by existing unicorns that maintain at least that valuation of $1 billion or more.
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14
Global US | Americas | Europe | Asia
4,500 $1,600
4,000 $1,400
Public listing Public
listing
3,500
$1,200
3,000
$1,000
2,500
$800 Buyout
Buyout
2,000
$600
1,500
$400
1,000
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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15
Global US | Americas | Europe | Asia
$191.3
$210.3
$326.8
$268.4
$241.5
$308.4
$280.9
$20.5
$0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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16
Global US | Americas | Europe | Asia
3,000 100%
Under $50M
90%
2,500
80%
$50M-$100M
70%
2,000
$100M- 60%
$250M
1,500 50%
$250M- 40%
$500M
1,000
30%
$500M-$1B
20%
500
10%
$1B+
0 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023 Follow-on First-time
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17
Global US | Americas | Europe | Asia
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18
Global US Americas | Europe | Asia
In Q1’23, USVC-backed
companies raised
$31.7B across
2,217deals
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19
Global US Americas | Europe | Asia
Q1’23 VC investment in the US less than half the amount seen in Q1’22 Startups working to maximize efficiencies, negotiate bridge funding
Given the significant amount of uncertainty in the market both in the US and globally, it was no During Q1’23, startups of all sizes continued to cut costs and conduct significant layoffs in a bid to
surprise that US-based VC investors continued to pull back from making large deals in Q1’23. conserve cash, maximize operational efficiencies, and extend their financial runway to delay
While the decline in VC investment was relatively modest quarter-over-quarter, the level of VC potential fundraising activities. Startups valued at the $1 billion unicorn threshold were particularly
investment in the US was less than 50% of the total amount invested during the same quarter in reticent about new funding rounds given concerns about valuation cuts and the potential negative
2022. The decline in the total number of VC deals was even more pronounced — from a peak impacts associated with losing unicorn status. This led to a spate of inside deals during the
of 5196 deals in Q1’22 to a low of 2217 in Q1’23. quarter, with companies giving up concessions in order to obtain additional funding to bridge the
gap until market conditions hopefully improve, valuations rebound, and the IPO window reopens.
Alternative energy and greentech attracted some of the largest rounds in Q1’23, including an
$800 million raise by low carbon infrastructure company Generate Capital and a $525 million Defense technologies remain attractive to VC investors in US
raise by carbon and environmental commodities trading company Xpansiv.
Over the past several quarters, defense related technologies gained significant traction among
Despite availability of dry powder, VC investors in US extremely cautious VC investors in the US, with investments going into a wide range of related technologies,
including AI powered defense platforms, autonomous military vehicles, and smart monitoring
While VC investors continued to have a large contingency of dry powder available to them as a technologies. During Q1’23, the sector continued to attract large funding rounds, including a $230
result of the robust funding environment in the US during 2021 and 2022, Q1’23 saw investors million raise by autonomous drone manufacturer Skydio.
showing significant caution with respect to their investments. Deal speeds slowed significantly
as many VC investors conducted additional due diligence on potential deals in light of current Consumer-focused technology companies continued to bear the brunt of the pullback in VC
market challenges and the ever-changing market conditions. In particular, VC investors investment during Q1’23, although a few companies bucked the trend, including gamification-
enhanced their scrutiny of the valuations of startups looking to attract funding, their profitability, focused online cycling and running platform Zwift — which raised $620 million.
and the long-term sustainability of their business models. VC investors in the US also held off
from supporting first time deals during the quarter, with many focusing primarily on companies
within their existing portfolios.
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20
Global US Americas | Europe | Asia
IPO door remains shuttered; take private activity strengthens M&A activity remains soft
IPO activity in the US remained effectively dead during Q1’23, with little to suggest an imminent M&A activity remained soft in Q1’23 as potential buyers juggled competing business priorities and
rebound. While a number of companies remained IPO ready, having already filed confidentially concerns about target company valuations. M&A activity is still expected to rebound as valuations
over the past twelve months, these companies have effectively pressed pause on their plans. stabilize, companies in hard-hit sectors run out of cash, and strategic investors look to acquire
Should the market and valuations stabilize, there could be some renewed IPO activity towards companies at more economical valuations.
the end of 2023, although it could take time before a startup is confident enough to lead the way
Trends to watch for in Q2’23
out the door.
With no end in sight to the current market uncertainty, VC investment in the US is expected to
Health modernization remains strong focus for investors
remain weak heading into Q2’23. Energy, cybersecurity, and defense will likely continue to attract
The COVID-19 pandemic shone a spotlight on the need to modernize the US healthcare sector. investment, while generative AI will likely see investor interest grow significantly. In the wake of
In the post pandemic world, both health system modernization and personalized medicine have the unexpected banking challenges experienced during Q1’23, fintech could also see renewed
continued to attract interest and VC investment, particularly in areas like physician interfaces, interest as startups look to elevate fintech-as-a-function solutions.
practice management, care management, and revenue and billing. During Q1’23, Monogram
Health — a company focused on benefits management and care delivery for patients with
kidney disease — raised $375 million4, while Paradigm — a company focused on improving
the integration of clinical trials into the broader health system in the US — raised $203 million5.
4 https://www.monogramhealth.com/press/monogram-health-closes-375m-growth-capital-raise-to-support-continued-expansion-of-innovative-in-home-kidney-and-polychronic-care-model
5 https://www.beckershospitalreview.com/digital-health/clinical-trial-platform-paradigm-debuts-with-203m-in-funding-dr-stephen-klasko-on-board.html
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21
Global US Americas | Europe | Asia
The first quarter of 2023 sees continuation of slide in the pace of investing
Venture financing in the US
2015–Q1'23
Multiple economic and financial indicators still remain mixed
$100 6,000 as to whether the US is likely to enter a recession in the next
several months, or perhaps even early 2024. That overlying
$90 economic backdrop is just one more factor that is leading to
5,000 significant concern on the part of venture investors right now,
$80 which is why the pace of investing has slowed considerably. In
addition, even though financing metrics are reversing
$70 somewhat for the first time in years, the competitive landscape
4,000
also remains both intense and murky, as incumbents are
$60 holding onto market share especially with the reserves to
spend in a down market, yet regulatory action and the latest in
$50 3,000
tech policies continues to exert ripple effects across the entire
tech landscape, however slowly. Given the array of risks,
$40
investors are pulling back and battening down the hatches to
2,000 the extent they can with their existing portfolio companies.
$30
$20
1,000
$10
$21.4
$21.5
$22.7
$21.1
$21.6
$26.9
$18.8
$16.8
$18.7
$22.8
$25.2
$23.3
$30.7
$32.0
$35.1
$48.7
$40.4
$37.4
$38.3
$33.8
$38.8
$37.8
$48.5
$46.2
$78.8
$83.1
$88.6
$94.7
$81.3
$76.6
$46.8
$40.7
$31.7
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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22
Global US Americas | Europe | Asia
$35 100%
90%
$30
Up
80%
$25
70%
60%
$20
50%
Flat
$15
40%
$10.3
$10 30%
$6.3 20%
$5.6
$5
10% Down
$2.1
$0 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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23
Global US Americas | Europe | Asia
“
Median deal size ($M) by series in the US
2015–2023*
The need for cybersecurity is
never going away. Every day
$120 brings news of new attacks
and that’s just the ones made
public. New attack
$100 technologies are going to keep
coming out and new solutions
will continue to be developed
to thwart them. Cybersecurity
$80
definitely has one of the
highest upsides of any
subsector. Another interesting
$60 one that I think will continue to
$54.3 grow—although it likely has
some ebbs and flows ahead—
$40 is the whole area of space
exploration and space related
$30.0 offerings. It’s a long-term play,
$24.0 but I do think it’s a technology
$20
”
and investment trend that’s
$10.0
going to continue.
$3.0
$0 $0.2
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The Series D+ figure is based on non-normative sample sizes for 2023 YTD.
24
Global US Americas | Europe | Asia
“
Median pre-money valuation ($M) by series in the US
2015–2023*
There’s been a significant drop in
VC fundraising in Q1’23 for
$1,200
certain. And there’s still a lot of
money that needs to be put to
work in existing VC funds and PE
$1,000 funds, so it’s not surprising that
fundraising has fallen off.
Fundraising targets are no longer
$800
oversubscribed – unlike in
previous years. Investors see
debt as a more attractive asset
class given that rates rises are
$600 now baked in. So, we’re seeing a
bit of a flight to assets higher up
the pecking order, and an
$400 increase in the popularity of
$250.0
private credit over riskier equity
”
capital which will be challenging
for VCs.
$200 $135.5
$70.0
$13.00 $30.0
$0 $4.03
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Sam Lush
Director, Private Equity
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The angel and Series
D+ figures for 2023 YTD are based on non-normative sample sizes.
Group
KPMG in the US
Note: Figures rounded in some cases for legibility.
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25
Global US Americas | Europe | Asia
Proportions revert to align more with historical norms, with angel & seed sliding
Deal share by series in the US Deal share by series in the US
2015–2023*, number of closed deals 2015–2023*, VC invested ($B)
16,000 $350
14,000
$300
12,000
$250
10,000
$200
8,000
$150
6,000
$100
4,000
$50
2,000
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Series D+ Series C Series B Series A Angel & seed Series D+ Series C Series B Series A Angel & seed
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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26
Global US Americas | Europe | Asia
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
Systems 10%
10%
HC Devices &
0% Supplies 0%
2023*
2015
2016
2017
2018
2019
2020
2021
2022
2023*
2015
2016
2017
2018
2019
2020
2021
2022
Energy
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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27
Global US Americas | Europe | Asia
“
Corporate participation in venture deals in the US First-time venture financings of companies in the US
2015–Q1'23 2015–2023*
One interesting question
$50 1,200 $30 6,000 here in the US is ‘what will
happen with all the newly
$45 unemployed developers,
$40
1,000 $25 5,000 technologists, and the like?’
Will they start their own
$35
800
companies? Will they accept
$20 4,000
lower salaries? Will they
$30
move to some other location
$25 600 $15 3,000 or embrace remote work?
We don’t have the answer
$20
right now, but it could be
400
$15 $10 2,000 quite exciting, particularly if it
means a new cohort of
”
$10
200 startups appear in 2023.
$5 1,000
$5
$11.0
$15.4
$10.4
$13.3
$15.5
$17.1
$26.3
$16.6
$16.0
$16.9
$12.3
$19.8
$18.8
$23.5
$19.9
$38.9
$38.0
$40.7
$44.5
$37.3
$36.5
$21.7
$17.0
$10.4
$9.4
$9.3
$8.9
$9.8
$8.0
$6.6
$6.9
$9.1
$9.8
$15.9
$15.5
$15.1
$25.5
$24.5
$9.5
$9.8
$9.9
$3.0
$0 0
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 $0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Deal value ($B) Deal count Peter Kehrli
Partner
KPMG in the US
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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28
Global US Americas | Europe | Asia
$300 600
$250 500
$200 400
$150 300
$100 200
$50 100
$128.5
$104.5
$173.3
$267.8
$200.6
$213.0
$12.3
$19.3
$23.7
$22.2
$13.1
$18.7
$22.0
$11.0
$33.3
$20.7
$16.5
$31.7
$19.6
$36.9
$33.3
$38.1
$51.5
$45.1
$24.3
$16.8
$35.6
$86.9
$32.2
$18.0
$16.4
$6.2
$5.7
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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29
Global US Americas | Europe | Asia
2,500 $900
$800
Public
Public listing
listing
2,000
$700
$600
1,500
$500
Buyout
Buyout
$400
1,000
$300
$200
500
Acquisition
Acquisition $100
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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30
Global US Americas | Europe | Asia
$120
1,000
… as fundraising volume has slowed
$100 drastically, 2023 starts off with
800 just $11.7 billion, back to a
$80
quarterly pace reminiscent
$60
600
of pre-2018.
400
$40
$20 200
$158.5
$170.8
$43.5
$51.0
$45.6
$62.1
$72.5
$91.6
$11.7
$0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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31
Global US Americas | Europe | Asia
1,200 $180
Under Under
$50M $50M
$160
1,000
800 $120
$100M- $100M-
$250M $100 $250M
600
$80
$250M- $250M-
$500M $500M
400 $60
$1B+ $1B+
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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32
Global US Americas | Europe | Asia
100% 100%
90% 90%
80% 80%
Follow-on Follow-on
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
10% 10%
0% 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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33
Global | US Americas Europe | Asia
In Q1’23, VC-backed
companies in the
Americasraised
$33.1B across
2,542 deals
#Q1VC
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34
Global | US Americas Europe | Asia
US remains key driver of VC investment in Americas in Q1’23 Canada’s health and biotech sector continues to attract deals
While the US continued to account for the vast majority of VC funding in the Americas this Within Canada, a number of sectors saw significant drops in VC investment during Q1’23,
quarter, the country was not immune to the worsening macroeconomic conditions; both VC including fintech and ecommerce. By comparison, health and biotech showed more resilience,
investment and the number of VC deals in the US declined for the fifth straight quarter in Q1’23. with a variety of companies attracting funding — if at relatively smaller deal sizes. During the
Canada attracted the largest deals outside of the US during Q1’23, including a $125 million quarter, Toronto-based Smile Digital Health raised $30 million, while Westmount-based LAmAb
raise by blockchain-based Bitcoin infrastructure company Blockstream and a $100 million raise and Montreal-based Puzzle Medical Devices raised $25 million each. Interest in the agtech space
by small business-focused operations management company Jobber. VC investment in Latin continued to grow in Canada during Q1’23, although it is still considered a very emerging area of
America was relatively quiet to start the year. Brazil, in particular, saw VC investment drop for investment. During the quarter, Vancouver-based Terramera — a startup focused on removing
the sixth straight quarter, with mobile application delivery company Daki raising the country’s synthetic chemicals from agriculture — raised $7.5 million.
largest round ($50 million) in Q1’23.
Pre-seed and seed deals maintain traction in Brazil
Fundraising activity falls off a cliff in Q1’23
VC investment in Brazil was soft in Q1’23, driven both by global macroeconomic circumstances
After a stellar fundraising environment in 2021 and 2022, fundraising activity by VC firms fell and by uncertainties related to change in government. While large deals were virtually absent in
sharply in the Americas during Q1’23. Despite the drop-off in fundraising, VC firms continued to Brazil this quarter, pre-seed and seed deal activity remained active as VC investors focused on
have a wealth of capital at their fingertips, although the speed at which they deployed this companies with good growth and return potential and that had more realistic valuations compared
capital slowed considerably during the first quarter of 2023 due to the heightened level of to later stage startups. VC investments in Brazil during the quarter were spread out in a number
market uncertainty and the growing pressure to strengthen their due diligence processes. In of sectors, with largest rounds in e-commerce delivery app, “green” mobility, martech and logtech
contrast to many other jurisdictions, Brazil saw its number of new funds increase in recent companies. The Web3 gaming space also came into the spotlight in Brazil for the first time during
quarters, suggesting that the country, and the Latin American region more broadly, will remain the quarter thanks to a $6 million raise by blockchain-enabled gaming development company
attractive to VC investors long-term despite the current slowdown. Jungle.
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35
Global | US Americas Europe | Asia
Americas sees VC investment and the number of VC deals slide for the fourth-straight quarter.
Governments across the Americas continued to support VC market activity and the evolution
and maturation of tech ecosystems. BNDES, the Brazilian Development Bank participated in
one of the largest funding rounds in the quarter — making it one of the country’s most relevant
investors during 2023. In Canada, the federal government announced $700 million in funding
during Q1’23 to support the growth of identified global innovation clusters in the country,
including advanced manufacturing, protein industries (i.e., plant-based food and feed), digital
technologies, AI, and ocean-focused solutions aimed at improving the health of the planet6.
6 https://www.canada.ca/en/innovation-science-economic-development/news/2023/02/government-of-canada-announces-renewed-funding-for-the-global-innovation-clusters.html
#Q1VC
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36
Global | US Americas Europe | Asia
$102.7
$22.2
$22.5
$23.6
$21.6
$22.3
$27.5
$19.5
$17.7
$19.6
$24.3
$26.5
$24.5
$32.6
$33.8
$36.4
$51.0
$42.1
$40.3
$41.5
$36.2
$41.1
$39.8
$50.9
$48.9
$83.1
$92.7
$98.3
$91.1
$81.7
$49.9
$44.0
$33.1
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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37
Global | US Americas Europe | Asia
$35 100%
90%
$30
Up
80%
$25
70%
$20 60%
$15 50%
Flat
$10.4
40%
$10
30%
$6.2 $5.7
$5
20%
$2.0
$0 10% Down
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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38
Global | US Americas Europe | Asia
Earlier financing sizes slide less, likely due to lower inflation rates
Median deal size ($M) by series in the Americas
2015–2023*
$120
$100
$80
$60
$55.0
$40
$30.0
$23.8
$20
$10.0
$2.8
$0 $0.2
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The Series D+ figure is based on non-normative sample sizes for 2023 YTD.
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39
Global | US Americas Europe | Asia
$1,200
$1,000
$800
$600
$400
$250.0
$200
$136.0
$70.0
$12.7 $30.0
$0 $3.7
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The angel and Series D+ figures are based on non-normative sample sizes for 2023 YTD.
#Q1VC
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40
Global | US Americas Europe | Asia
16,000 $350
Series D+ Series D+
14,000
$300
12,000
Series C $250
Series C
10,000
$200
8,000 Series B
Series B
$150
6,000
$100
Series A
4,000 Series A
$50
2,000
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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41
Global | US Americas Europe | Asia
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
Systems
10% 10%
HC Devices &
0% Supplies 0%
2023*
2015
2016
2017
2018
2019
2020
2021
2022
2023*
2015
2016
2017
2018
2019
2020
2021
2022
Energy
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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42
Global | US Americas Europe | Asia
“
Venture financing in Canada
2015–Q1'23
While I was glad to see a
couple of larger deals earlier in
$6,000 450
this quarter here in Canada, I
think these bigger deals aren’t
400 going to happen as frequently
$5,000 during the rest of 2023 given
350 how much uncertainty is in the
market and how much interest
$4,000 300 rates are rising. Instead, we’re
going to see VC investors
250 focusing on smaller, mid-sized
”
$3,000 deals involving companies that
200 have more trusted valuations.
$2,000 150
100
$1,000 $1,403.6
$1,161.5
$1,151.4
$1,875.1
$1,490.2
$1,405.9
$1,141.2
$1,247.2
$2,680.9
$5,032.9
$2,537.5
$3,186.2
$4,637.1
$2,263.0
$1,649.8
$2,116.8
50
$537.4
$526.9
$529.1
$418.3
$573.9
$469.2
$545.7
$676.7
$335.4
$776.6
$963.2
$895.0
$902.4
$728.2
$927.8
$867.4
$907.3
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Ryan Forster
Deal value ($M) Deal count Partner,
KPMG in Canada
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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43
Global | US Americas Europe | Asia
$1,800 80
$1,600 70
$1,400
60
$1,200
50
$1,000
40
$800
30
$600
20
$400
$1,154.1
$1,624.0
$200 10
$143.9
$320.7
$146.7
$274.5
$203.5
$652.5
$284.8
$570.9
$865.5
$714.8
$270.6
$193.7
$25.7
$32.3
$21.8
$13.4
$54.5
$71.9
$18.3
$26.3
$69.2
$22.6
$13.7
$52.2
$70.5
$56.4
$81.5
$80.1
$52.9
$63.0
$89.7
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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44
Global | US Americas Europe | Asia
“
Venture financing in Brazil
2015–Q1'23
One trend, not only here in
$3,000 200
Brazil but globally, is that
investors are looking for
180 returns right now rather than
high growth. And when you
$2,500
160 look at pre-seed and seed
companies—valuations
140 generally are more realistic
$2,000 and the ticket sizes are usually
120 significantly lower. When you
put these two factors together,
$1,500 100 you see some good
companies with nice profiles of
80 growth versus return. We saw
$1,000 the great majority of the Q1
”
60 rounds taking place in these
stages.
40
$500
$1,080.6
$2,586.5
$1,954.9
$2,504.2
$2,051.5
$157.9
$275.1
$135.3
$119.2
$124.7
$103.2
$149.2
$239.4
$214.6
$257.0
$460.3
$112.3
$281.9
$978.3
$126.8
$542.9
$368.4
$507.5
$574.9
$874.7
$672.1
$957.7
$992.3
$620.1
$240.7
$163.9
20
$70.0
$85.0
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Rodrigo Guedes
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023 Managing Director
KPMG in Brazil
#Q1VC
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45
Global | US Americas Europe | Asia
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31,
2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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46
Global | US | Americas Europe Asia
In Q1’23, European
VC-backed companies
raised $9.8B across
1,533deals
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47
Global | US | Americas Europe Asia
Consumer focused businesses take big hit Governments enhancing supports for startups
Macroeconomic conditions, the ongoing war in the Ukraine, high levels of inflation, and sky-high Several government-backed initiatives were initiated in Europe during Q1’23 to support startup
energy costs created a perfect storm of challenges for both companies and consumers in growth. The UK’s budget included £3.5 billion to help the country become a scientific and
Europe. Many D2C businesses that thrived under pandemic conditions found their business technologic superpower, including funding to support next-gen supercomputing and AI research7.
models much less resilient within the current market climate. Several consumer-focused The UK also released a whitepaper on the regulation of AI8. During the quarter, the German
sectors saw VC investors pull back significantly during Q1’23, including ecommerce, BNPL, and government also launched a €1 billion fund to support growth stage deeptech and climatetech
last mile delivery. B2B-focused SaaS and AI companies continued to attract investor interest, in companies9, while the European Investment Bank Group and five EU member states announced
addition to companies focused on Energy, ESG, and mobility. Even in these sectors, however, the European Technology Champions Initiative: a $3.75 billion fund to address funding gaps and
deal sizes dropped compared to recent quarters. support late-stage growth companies in the region10.
VC investors more stringent with portfolio companies Q1’23 VC investment in UK pales compared to Q1’22
VC investors in Europe were increasingly cautious in Q1’23, taking a heavier hand with their After slowing down significantly in Q4’22 as a result of both global issues and an unsettled
portfolio companies — scrutinizing their internal budgets, pressuring them to cut costs and domestic political environment, VC investment in the UK remained subdued in Q1’23, particularly
become more efficient, and holding them accountable to agreed-upon milestones. Over the next compared to Q1’22. A $601 million raise by fintech player Abound (Consumer Finance) was the
couple of quarters, VC investors could begin to pick and choose between their portfolio UK’s largest deal of Q1’23, followed by a $160 million raise by B2B focused fintech the Bank of
companies, pulling back from making follow-on investments in companies they don’t believe London, a $149 million raise by EV automotive company One Moto, and a $140.3 million raise by
can survive. This could spur M&A activity as startups look to sell in order to avoid failing. autonomous vehicle software firm Oxbotica. Carmoola rounded out the largest of deals with a
$126 million series A deal. Business services and energy transition continued to attract significant
attention from VC investors in Q1’23, while interest in consumer retail and real estate remained
dry. Looking forward, B2B technology enablement is likely to remain a key driver of investment,
not only in areas like financial and health services but across every sector imaginable.
7 https://www.gov.uk/government/news/government-commits-up-to-35-billion-to-future-of-tech-and-science
8 https://www.gov.uk/government/news/uk-unveils-world-leading-approach-to-innovation-in-first-artificial-intelligence-white-paper-to-turbocharge-growth
9 https://sifted.eu/articles/germany-1bn-deeptech-climate-fund-news/
10 https://www.eib.org/en/events/european-tech-champions-initiative
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48
Global | US | Americas Europe Asia
11 https://www.gaebler.com/VC-Funding-48E2BE6F-1C03-4750-8207-5B29255A795E-Vivasure-Medical-03-13-2023
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49
Global | US | Americas Europe Asia
$15
1,500 ecosystems have not seen
1,000
cataclysmic declines as of
$10
yet…
$5 500
$10.5
$10.5
$11.6
$12.0
$11.0
$11.4
$11.4
$12.0
$17.0
$17.1
$29.2
$38.8
$30.1
$34.4
$39.0
$34.6
$21.8
$15.7
$5.3
$5.1
$5.8
$5.3
$6.2
$5.0
$4.7
$5.6
$5.7
$7.4
$7.1
$9.5
$8.4
$7.8
$9.8
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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50
Global | US | Americas Europe Asia
$12 100%
90%
$10.5
$10 Up
80%
70%
$8
60%
$6 50%
Flat
$5.1
40%
$4
30%
$2.5
20%
$2 $1.6
10% Down
$0
0%
2015 2016 2017 2018 2019 2020 2021 2022 2023*
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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51
Global | US | Americas Europe Asia
$160
$140
$120
$100
$80
$60 $60.5
$54.3
$40
$24.7
$20
$9.4
$0 $2.15 $0.6
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The Series C and D+ figures for 2023 YTD are based on non-normative sample sizes.
#Q1VC
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52
Global | US | Americas Europe Asia
$1,200
$1,000
$800 $735.9
$600
$450.0
$400
$200
$43.8
$4.9 $26.91
$0 $3.9
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The figures for Series D or later valuations in 2015 and 2023 to date are based on non-normative sample sizes. Q1 2023 figures for Series
B and C are also based on non-normative sample sizes.
#Q1VC
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53
Global | US | Americas Europe Asia
8,000 $100
Series D+ Series D+
7,000 $90
$80
6,000
Series C $70 Series C
5,000
$60
4,000 $50
Series B Series B
$40
3,000
$30
Series A Series A
2,000
$20
1,000
$10
Angel & seed Angel & seed
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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54
Global | US | Americas Europe Asia
60% 60%
Pharma & Biotech
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
Systems
10% 10%
HC Devices &
Supplies
0% 0%
Energy
2023*
2023*
2015
2016
2017
2018
2019
2020
2021
2022
2015
2016
2017
2018
2019
2020
2021
2022
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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55
Global | US | Americas Europe Asia
$10 3,500
$12 600
3,000
$10 500 $8
2,500
$8 400
$6
2,000
$6 300
$4 1,500
$4 200
1,000
$2
$2 100 500
$12.2
$14.0
$17.0
$14.0
$14.7
$16.7
$16.5
$10.3
$3.1
$3.1
$4.0
$5.0
$4.3
$4.6
$7.9
$1.2
$2.2
$1.5
$1.6
$2.8
$2.2
$1.8
$2.0
$1.9
$3.1
$2.2
$2.8
$3.5
$3.3
$3.6
$4.3
$4.1
$5.4
$5.2
$4.0
$4.4
$6.3
$8.1
$7.7
$7.6
$4.0
$0.9
$0 0 $0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal value ($B) Deal count Deal value ($B) Deal count
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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56
Global | US | Americas Europe Asia
$60 300
… after a strong stretch for exit
250
value, a clear slowdown is
$50
$40 200
evident, while prospects
$30 150 remain murky.
$20 100
$10 50
$38.7
$12.7
$11.1
$10.8
$34.7
$31.7
$66.7
$29.5
$15.8
$16.6
$5.8
$5.2
$4.1
$8.2
$6.8
$6.5
$4.2
$2.6
$5.3
$7.5
$3.4
$4.3
$1.9
$5.5
$3.3
$2.6
$5.2
$8.5
$1.8
$5.5
$3.4
$5.2
$1.8
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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57
Global | US | Americas Europe Asia
1,400 $180
$160
1,200
Public listing Public listing
$140
1,000
$120
800
$100
Buyout Buyout
$80
600
$60
400
$40
200
$20 Acquisition
Acquisition
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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58
Global | US | Americas Europe Asia
“
European venture fundraising
2015–2023*
We’re seeing some boldness
After a record-breaking stretch for capital creeping into the corporate world.
$35 400 committed, the slowdown has finally hit the The larger corporates, having
European continent, with the pace of navigated the multiple challenges
350 commitments slowing dramatically and total of COVID, perceive the current
$30 capital pledged on pace for tallies similar in environment as relatively benign –
2015. although an inflationary
300 environment is not plain sailing,
$25 through the pandemic many
corporates strengthened their
200
off to a slow start, although in more confident about themselves,
if not the economy overall. On the
$15
the direct wake of significant other hand with institutional
investors constrained by the
150 recent tallies. availability of credit and more
fearful of the investment
$10
100
environment, could it be a buyers’
market for corporates right now?
Any corporate boldness will not be
$3.7
$5 enough to make up for the
50
”
reduced participation of private
$12.8
$18.8
$25.3
$19.9
$24.2
$29.0
$30.9
$28.8
equity, but it is very interesting.
$0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
Robert Baxter
Head of Corporate Finance
KPMG in the UK
#Q1VC
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59
Global | US | Americas Europe Asia
300 100%
Under $50M
90%
250
80%
$50M-
$100M Follow-on
70%
200
$100M- 60%
$250M
150 50%
$250M- 40%
$500M
100
30%
$500M-$1B
20% First-time
50
10%
$1B+
0 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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60
Global | US | Americas Europe Asia
“
Venture financing in the United Kingdom
2015–Q1'23
The end of 2021 and into early
2022 was really an outlier
$16 1,200
period. Now, we’re somewhat
coming back to normal—
$14 except it’s being compounded
1,000 by a number of other factors
$12 that have come up. So it looks
like, more of an adjustment
800 than perhaps we would have
$10
seen if this would have
happened in isolation of the
$8 600 economic environment. The
dynamic of the two factors
”
$6 together is making the disparity
400 even bigger.
$4
200
$2
$10.2
$15.2
$1.6
$1.1
$2.3
$2.1
$1.7
$1.6
$1.5
$1.7
$1.6
$2.8
$2.8
$4.4
$3.6
$2.5
$2.8
$3.7
$4.0
$3.6
$3.2
$3.4
$3.2
$3.8
$4.3
$5.5
$8.7
$9.5
$9.5
$8.6
$6.6
$4.2
$3.6
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023 Warren Middleton
Lead Partner for Emerging Giants,
Center of Excellence in the UK
Deal value ($B) Deal count KPMG in the UK
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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61
Global | US | Americas Europe Asia
$14 700
$12 600
$10 500
$8 400
$6 300
$4 200
$2 100
$12.8
$1.0
$0.6
$1.3
$1.1
$0.9
$1.0
$0.9
$0.9
$0.9
$2.1
$2.0
$3.5
$2.5
$1.2
$1.7
$2.3
$2.1
$2.8
$1.7
$2.4
$1.8
$2.5
$3.1
$3.2
$7.4
$5.7
$6.7
$6.4
$6.3
$4.7
$2.7
$2.4
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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62
Global | US | Americas Europe Asia
“
Venture financing in Ireland
2015–Q1'23
One thing that is fairly positive
at the moment is that we
$800 200
haven’t seen a complete drop
180 off in early-stage deals.
$700 Notwithstanding the inherent
160 risks, and uncertainty about
$600 the future, VC’s realize that
140 still need to invest in early
$500 stage companies. Otherwise,
120 they risk missing out on the
”
next wave of growth
$400 100
companies.
80
$300
60
$200
40
$100
$176.1
$235.0
$134.7
$303.1
$168.1
$238.0
$187.0
$124.1
$178.4
$131.1
$415.8
$368.4
$440.2
$108.0
$125.2
$124.6
$118.1
$103.2
$215.3
$291.5
$589.2
$386.0
$707.3
$348.4
$431.7
$446.8
$472.6
$233.3
$124.6
20
$41.3
$51.5
$90.0
$73.0
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Anna Scally
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023 Partner, Head of Technology &
Media
KPMG in Ireland
#Q1VC
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63
Global | US | Americas Europe Asia
“
Venture financing in Germany
2015–Q1'23
In the coming year, I believe
$8,000 450 we are going to see more
value creation in Germany.
$7,000 400 Historically, a lot has been
designed here and produced
350 elsewhere, but now we have
$6,000
technologies like 3D printing
300
$5,000 and moulding techniques.
250 Companies don’t need
$4,000 hundreds of people; they just
200 need space. In 2023 we
$3,000 should see more investment in
150 this space — in smart
$2,000 manufacturing that capitalizes
100
on German engineering
”
capabilities.
$1,069.9
$1,273.0
$1,750.6
$1,460.3
$1,209.0
$1,472.2
$1,988.6
$1,542.9
$1,343.8
$1,899.1
$2,168.4
$1,956.7
$3,375.1
$4,009.7
$3,960.3
$6,544.8
$2,620.1
$7,412.9
$3,856.4
$1,394.2
$1,079.8
$1,000 50
$642.4
$871.2
$829.9
$623.9
$578.7
$533.9
$668.0
$548.9
$899.7
$912.8
$938.7
$835.2
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
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64
Global | US | Americas Europe Asia
$6,000 180
160
$5,000
140
$4,000 120
100
$3,000
80
$2,000 60
40
$1,000
$1,024.4
$1,211.6
$1,249.4
$1,256.2
$1,224.4
$1,870.9
$2,066.7
$2,273.9
$4,807.8
$1,540.8
$3,680.5
$1,044.7
20
$923.2
$538.1
$741.6
$332.6
$235.2
$352.7
$178.4
$395.2
$319.4
$409.4
$414.5
$406.5
$190.1
$830.3
$513.0
$417.1
$683.7
$639.1
$862.3
$380.2
$679.0
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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65
Global | US | Americas Europe Asia
$1,800 200
$1,600 180
160
$1,400
140
$1,200
120
$1,000
100
$800
80
$600
60
$400
40
$1,539.7
$1,506.3
$1,142.9
$200
$127.5
$136.6
$221.3
$363.8
$162.2
$158.1
$282.6
$220.9
$153.6
$379.9
$265.7
$330.6
$188.1
$179.2
$502.1
$397.1
$385.2
$478.5
$317.9
$516.7
$498.5
$484.1
$694.6
$816.3
$670.2
$746.7
$370.0
20
$95.5
$96.1
$71.8
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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66
Global | US | Americas Europe Asia
$7,000 500
450
$6,000
400
$5,000 350
300
$4,000
250
$3,000
200
$2,000 150
100
$1,000
$1,179.9
$1,364.6
$1,287.8
$1,490.0
$1,344.3
$1,196.9
$1,454.9
$1,916.5
$1,521.3
$2,807.3
$2,107.5
$2,119.7
$4,181.1
$4,042.2
$2,774.7
$6,181.1
$3,225.0
$2,873.5
$1,720.1
$1,412.6
$445.4
$544.3
$607.2
$350.0
$483.6
$549.6
$580.3
$983.4
$904.2
$738.3
$808.4
$965.8
$883.4
50
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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67
Global | US | Americas Europe Asia
$4,000 250
$3,500
200
$3,000
$2,500
150
$2,000
100
$1,500
$1,000
50
$1,126.6
$1,163.4
$2,017.9
$1,111.3
$3,290.0
$2,248.3
$1,582.2
$3,500.0
$2,126.3
$2,251.5
$500
$134.5
$276.3
$367.2
$101.7
$285.5
$324.9
$378.8
$507.1
$443.9
$479.0
$493.0
$289.2
$706.0
$911.8
$448.1
$677.1
$828.3
$874.1
$660.5
$910.2
$924.3
$851.1
$447.3
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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68
Global | US | Americas Europe Asia
“
Venture financing in the Nordics
2015–Q1'23
We’re not seeing many
companies raising growth
$6,000 500
rounds at the moment in the
450 Nordics. The environment is
$5,000 far too uncertain for them. In
400 fact some are deferring any
new equity rounds until late
350
$4,000 this year or into 2024.
300 There’s more rounds being
raised at the early-stages
$3,000 250 here right now—although
also the deployment of
200
capital for early-stage
$2,000
companies slowed down
”
150
somewhat in Q1’23.
100
$1,000
$1,310.2
$1,161.0
$2,099.1
$1,012.2
$1,577.2
$1,007.2
$2,390.5
$1,877.6
$4,206.6
$5,626.8
$2,143.6
$2,796.7
$2,705.2
$2,662.4
$2,588.8
$3,235.4
$442.5
$877.5
$375.3
$429.8
$302.6
$349.0
$568.6
$658.9
$548.8
$521.6
$825.6
$710.5
$808.4
$582.1
$813.4
$852.3
$740.7
50
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
#Q1VC
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69
Global | US | Americas Europe Asia
“
Venture financing in Israel
2015–Q1'23
Q1' 2023 saw the global
stagnation in venture activity also
$6,000 250
affecting Israel. This trend is
amplified due to the current
political uncertainty, raising
$5,000 concerns as to their economic
200
ramifications on the local market.
The number of investment deals
$4,000 decreased substantially
150 (approximately half of those in Q1
2022), the majority in early-stage
$3,000 rounds (Seed and Round A). M&A
deals dominate the exits scene
100 (several were large scale —
$2,000 $100M and more), while IPOs
have nearly diminished. Looking
forward to the next quarter, we
50
$1,000 believe that the instability in the
$1,036.8
$1,245.0
$1,087.6
$1,058.1
$1,097.0
$1,381.1
$1,028.1
$1,141.9
$1,457.4
$1,688.0
$2,444.0
$2,744.5
$3,074.0
$5,022.1
$3,217.7
$3,586.1
$1,666.7
$1,232.1
global banking sector, coupled
$784.8
$309.5
$307.9
$636.9
$773.0
$528.9
$528.7
$289.4
$645.6
$875.7
$738.6
$691.7
$855.2
$931.8
$698.3
with the local political unrest, will
have a major impact on local tech
$0 0
”
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 companies, at a scope yet to be
2015 2016 2017 2018 2019 2020 2021 2022 2023
ascertained.
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
Dina Pasca-Raz
Head of Technology, #Q1VC
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KPMG in Israel 70
Global | US | Americas Europe Asia
1
2. Enpal — $228.4M, Berlin, Germany — Cleantech — Series D 3 6
5
2
4
3. The Bank of London — $160M, London, UK — Fintech — Series C 9
10
4. Moonfare — $151.7M, Berlin, Germany — Fintech — Series C
7
5. One Moto — $148.9M, London, UK — Cleantech — Late-stage VC
#Q1VC
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71
Global | US | Americas | Europe Asia
In Q1’23, VC-backed
companies in the Asia
region raised $13.5B
across 1,773 deals
#Q1VC
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72
Global | US | Americas | Europe Asia
Alternative energy hot across Asia, particularly in China and Hong Kong As VC investors questioned high valuations, late-stage funding in China dropped considerably in
Q1’23; by comparison, pre-seed and Series A funding was much more stable. Corporate VC
VC investment in alternative energy and electric vehicles remained very robust across Asia in investment in China also declined considerably during the quarter as corporates focused their
Q1’23, with China and Hong Kong accounting for the largest deals in the space, including a capital on supporting their own operations rather than on growth and expansion.
$750 million raise by EV vehicle manufacturer Zeekr, a $445 million raise by AI company
PhonePe, a $442 million raise by solar energy technology company SolarSpace, a $400 million VC investment in India remains subdued, but long-term outlook positive
raise by fossil fuels decarbonization company EcoCeres, and a $290 million raise by United
Aircraft. VC investment in India remained relatively soft in Q1’23 as VC investors intensified their scrutiny
of potential deals. While FOMO drove a lot of VC investment in India in 2021 and early 2022, VC
Interest in alternative energy also remained robust in India during Q1’23, with VC investors investors have since enhanced their focus on startup performance and profitability. Fintech
particularly focused on the two-wheel EV market. Given India’s role as a major automotive continued to drive many of the largest deals in India in Q1’23, including a $445 million raise by
manufacturing hub, it is expected that alternative energy will remain a key priority for VC PhonePe, a $218 million raise by NoBroker, a $200 million raise by KreditBee, and a $150 million
investors for some time. India’s government has also been very supportive of the EV space, raise by Insurance Dekho. India also saw growing interest in agtech and gaming during the
introducing subsidies to support EV adoption. quarter. After a long period of euphoria, interest in edtech in India died down considerably during
Q1’23.
VC investment in China falls sharply quarter-over-quarter
Despite the current slowdown in VC funding, macro factors in India remained relatively strong
VC investment in China was particularly hard hit this quarter as the country battled a major compared to other jurisdictions, which is driving optimism that the country will see a bounce back
COVD-19 wave in the wake of its autumn reopening, although VC activity picked up somewhat in VC investment in the later half of 2023.
in the second half of the quarter once the wave diminished. VC investment during Q1’23 totalled
only $7.4 billion — less than half of the $15 billion seen in Q4’22.
#Q1VC
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73
Global | US | Americas | Europe Asia
Japanese VC investment saw slight increase during the quarter compared to global downward There is cautious optimism across much of Asia heading into Q2’23, with several jurisdictions
trend in VC investment, although it remained soft compared to the level of investment seen seeing some positive signs for the future, if no actual pick-up in deals at present. While VC
during the same quarter in 2022. VC investors in Japan became more selective with respect to investment in the region is not expected to bounce back remarkably over the next quarter, should
post Series C deals during Q1’23, although appetite for seed and Series A deals remained quite the sense of positivity continue, VC activity could begin to see some recovery heading into the
robust. second half of the year.
The Government of Japan made a strong commitment to fostering innovation in its Integrated While IPO activity was slow in Asia during Q1’23, it could see some renewed interest as a result
Innovation Strategy 202212. In Q1’23, it moved forward with several of the initiatives included in of the new Chapter 18C listing rules in Hong Kong. China is also working to strengthen the
this strategy, including funding for R&D at universities and centers of excellence and funding to attractiveness of its mainland stock exchanges for tech-driven businesses in sectors like
support local governments as they establish startup hubs and clusters. In addition to Tokyo, deeptech, EV, and biotech.
Sapporo and Sendai have rapidly emerged as startup hubs in Japan. Osaka, Hiroshima, and
Fukuoka are also aggressively using funds to attract startups to their prefectures.
Investor interest in AI has been relatively robust in Asia historically, although it increased further
in Q1’23 in the wake of the global buzz generated by ChatGPT. The applicability of AI to many
diverse sectors makes it a particularly attractive area for investment. In Hong Kong, AI solutions
are maturing quite rapidly, particularly in building management — such as the use of AI to
manage building operations, energy use, and security, and in health and biotech — including
the use of AI for drug discovery and the modeling of disease spread.
12 https://www.japan.go.jp/kizuna/2022/06/integrated_innovation_strategy.html
#Q1VC
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74
Global | US | Americas | Europe Asia
“
Venture financing in Asia
2015–Q1'23
EV, alternative energy,
VC invested remained relatively
Greentech — all of these
$80 5,000 healthy, especially in the broader
areas are still doing very well
context of historical tallies, up to
right now. Investment in the
4,500 the end of 2022. However, this
$70 space is quite big and I think
year has begun in a markedly
slow fashion, even if figures do
it’s just going to get bigger
4,000
tick up somewhat. Given that
and bigger every day. It’s
$60 such a positive area, such a
multiple macro and market
3,500 good news story, that
factors are still in place that are
$50 producing an environment everyone is trying to get in on
3,000
marked by caution, it remains to it. The other area that is
be seen how much further activity getting a lot of attention right
$40 2,500 may diminish. now is AI. Not just the
consumer applications, but
”
2,000 the real deeptech solutions.
$30
It’s a really exciting space.
1,500
$20
1,000
$10
500
$13.7
$12.8
$27.8
$13.6
$21.9
$29.7
$17.9
$17.0
$13.8
$20.9
$25.5
$24.5
$35.9
$52.2
$34.0
$37.6
$25.2
$20.2
$36.5
$38.1
$25.1
$24.1
$32.3
$46.6
$45.6
$45.1
$63.5
$71.7
$44.6
$32.6
$31.1
$25.5
$13.5
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Egidio Zarrella
2015 2016 2017 2018 2019 2020 2021 2022 2023 Partner, Clients and Innovation
KPMG China
Deal value ($B) Deal count Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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75
Global | US | Americas | Europe Asia
$70 100%
90%
$60
Up
80%
$50
70%
$40 60%
50%
$30 Flat
40%
20%
$10
$7.50
$4.6 10% Down
$0 $0.6
2015 2016 2017 2018 2019 2020 2021 2022 2023* 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Angel & seed Early VC Later VC Venture growth
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. 2023 figures for up, down or flat rounds are based on non-normative sample sizes.
#Q1VC
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76
Global | US | Americas | Europe Asia
$90
$80
$70
$60
$50
$40
$30.0
$30 $29.3
$20
$14.6
$10
$7.3
$0.79
$0 $0.1
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The Series D+ figure for 2023 YTD is based on non-normative sample sizes.
#Q1VC
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77
Global | US | Americas | Europe Asia
Although sample sizes introduce variability, some metrics have begun to slide
Median pre-money valuation ($M) by series in Asia
2015–2023*
$700
$600
$520.0
$500
$400
$323.0
$300
$200
$100
$75.0
$25.0
$0 $1.6 $3.5
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Seed Angel A B C D+
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023. The 2023 YTD figures for Angel, Series B, C and D+ are all based on non-normative sample
sizes.
#Q1VC
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78
Global | US | Americas | Europe Asia
10,000 $160
8,000
$120
7,000 Series C Series C
$100
6,000
5,000 $80
Series B Series B
4,000
$60
3,000
Series A $40 Series A
2,000
$20
1,000
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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79
Global | US | Americas | Europe Asia
50% 50%
Other
40% 40%
Media
30% 30%
IT Hardware
20% 20%
HC Services &
Systems
10% 10%
HC Devices &
Supplies
0% 0%
Energy
2023*
2015
2016
2017
2018
2019
2020
2021
2022
2023*
2015
2016
2017
2018
2019
2020
2021
2022
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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80
Global | US | Americas | Europe Asia
$50 1,800
$45 1,600
$40
1,400
$35
1,200
$30
1,000
$25
800
$20
600
$15
400
$10
$5 200
$18.0
$13.0
$21.8
$10.0
$11.8
$17.5
$11.0
$21.6
$40.1
$20.4
$18.1
$13.5
$10.5
$14.5
$24.8
$16.1
$13.5
$18.9
$28.3
$26.2
$22.0
$43.3
$46.0
$27.1
$17.8
$16.7
$15.5
$6.9
$6.4
$6.9
$9.6
$6.9
$7.2
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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81
Global | US | Americas | Europe Asia
“
Venture-backed exit activity in Asia
2015–Q1'23
The IPO market in Hong
Kong continues to be slow
$200 250
this quarter, but the new
$180 Chapter 18C listing regime
that came out in Q1’23 will
$160 200 make it easier for specialist
technology companies—
$140
startups focused on AI,
robotics, alternative energy,
$120 150
agritech, and other similar
$100 areas—list on the Hong
Kong Stock Exchange. This
”
$80 100 could help spur some new
activity later in 2023.
$60
$40 50
$181.3
$134.0
$119.4
$20
$10.5
$15.1
$43.0
$16.6
$35.3
$48.0
$65.3
$11.6
$26.5
$27.0
$25.2
$23.5
$34.5
$55.2
$50.4
$32.1
$32.9
$36.1
$65.5
$34.8
$11.7
$5.5
$4.2
$6.7
$4.6
$9.2
$7.2
$8.6
$6.9
$0 $9.7 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
#Q1VC
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82
Global | US | Americas | Europe Asia
800 $500
$450
700
Public listing Public
listing
$400
600
$350
500
$300
$200
300
$150
200
$100
100 Acquisition
$50 Acquisition
0 $0
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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83
Global | US | Americas | Europe Asia
1,200
The fundraising cycle is very sluggish at the
$150
1,000 start of the year, but now it remains to
800 be seen how this systemic cycle
$100
600
affects on startup financing down
the line…
400
$50
200
$118.6
$135.2
$226.1
$166.2
$115.5
$112.6
$88.6
$69.9
$4.6
$0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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84
Global | US | Americas | Europe Asia
1,800 100%
Under $50M
1,600 90%
80%
1,400 $50M-
Follow-on
$100M
70%
1,200
60%
$100M-
1,000 $250M
50%
800
$250M- 40%
$500M
600
30%
200 10%
$1B+
0 0%
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
#Q1VC
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85
Global | US | Americas | Europe Asia
“
Venture financing in India
2015–Q1'23
The biggest change in India is
that the euphoria for deals has
$18 800 died down. The FOMO has
gone. The big ticket deals
$16 700 have also dried up, which has
had an outsized impact on our
$14
600
total investment numbers. But
despite the visible decline, it’s
$12 important to know that a lot is
500 still happening in India. The
$10 macros her are still very good.
400 We’re still seeing a lot of
$8 funding in pre-series A deals.
And we’re still seeing a lot of
300
$6 new micro funds being raised
in the country — funds under
”
200 $100 million with check sizes
$4
from $1–5 million.
$2 100
$15.7
$12.2
$1.8
$2.6
$4.1
$2.0
$1.2
$0.9
$1.5
$0.9
$2.4
$2.2
$5.6
$2.2
$2.9
$1.7
$2.5
$3.6
$3.5
$3.4
$5.1
$7.3
$3.2
$2.1
$4.5
$3.7
$5.3
$5.6
$9.3
$8.1
$3.0
$2.8
$2.1
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
#Q1VC
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86
Global | US | Americas | Europe Asia
“
Venture financing in China
2015–Q1'23
VC investment in China
remained quiet in Q1’23,
$50 2,500
although it did strengthen in
$45 the latter half of the quarter.
Now we’re starting to see
$40 2,000 some renewed VC activity.
Even if that activity hasn’t fully
$35 translated into deals quite yet,
it is a positive sign. Most of
$30 1,500 the VC investment here is
very tech driven, including
$25 quite a lot in the alternative
energy space, which isn’t
$20 1,000
new. But one new sector that
$15
is seeing growing activity is
biotech and life sciences.
”
$10 500 That’s an area to watch as we
head into Q2’23.
$5
$10.8
$21.6
$10.0
$19.0
$27.4
$13.8
$14.5
$15.0
$14.5
$19.9
$25.1
$44.3
$25.7
$26.6
$17.4
$12.2
$26.2
$20.6
$13.6
$17.2
$22.2
$36.4
$29.8
$26.3
$34.5
$41.2
$21.3
$14.0
$19.1
$15.0
$9.4
$9.9
$7.4
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Zoe Shi
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023 Partner
KPMG China
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Global | US | Americas | Europe Asia
$2,500 250
$2,000 200
$1,500 150
$1,000 100
”
$500 50
$1,380.3
$2,073.2
$1,484.8
$2,175.8
$1,333.3
$1,234.5
$129.4
$122.1
$137.8
$229.3
$137.2
$257.4
$183.9
$135.0
$252.1
$254.6
$174.7
$299.2
$548.0
$323.0
$426.1
$537.4
$467.9
$398.6
$466.0
$638.9
$732.8
$428.5
$529.5
$602.4
$760.2
$664.5
$479.4
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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“
Venture financing in Japan
2015–Q1'23
In Japan, we have seen a
slowdown in fundraising by
$2,500 400
traditional VC firms, however,
there continues to be appetite
350 from corporates, both for
$2,000
creating CVC funds and for
300
making direct investments in
startups. In Japan, large
corporates are highly engaged
250 in providing such finance to
$1,500
startups as they see these
200 investments as a way to drive
”
their own growth and take
$1,000 advantage of synergies.
150
100
$500
$1,037.5
$1,105.3
$1,030.3
$1,382.9
$1,147.7
$1,181.3
$1,188.3
$1,350.9
$1,166.7
$1,379.3
$1,972.2
$1,973.7
$1,619.4
$1,470.4
$1,668.4
$1,684.7
50
$232.2
$234.5
$204.0
$576.9
$505.7
$238.8
$338.1
$658.2
$359.1
$620.4
$659.6
$833.8
$752.9
$972.6
$946.4
$622.6
$694.9
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023 Hiroshi Abe
Executive Board Member,
Partner
Deal value ($M) Deal count KPMG in Japan
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023. Data provided by PitchBook, April 19, 2023
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Global | US | Americas | Europe Asia
Source: Venture Pulse, Q1'23, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of March 31, 2023.
Data provided by PitchBook, April 19, 2023
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Contact us:
Netherlands
Denmark
Germany
Sweden
Iceland Finland
Canada Norway Estonia
UK Latvia
Ireland Lithuania
Poland
Conor Moore
Channel Islands Czech Republic Head of KPMG Private Enterprise in the
Luxembourg Slovakia Americas,
France
Switzerland Ukraine China Global Leader, Emerging Giants, KPMG
US Romania South Korea
Portugal Private Enterprise, KPMG International &
Bermuda Turkey Japan Partner, KPMG in the US
Spain Bangladesh
Italy Greece Israel Taiwan
Mexico Austria Malta Cyprus (Jurisdiction)
Tunisia
India Hong Kong (SAR), China
Venezuela
Cambodia Vietnam
Colombia South Africa
Singapore
Lindsay Hull
Peru Senior Director, Emerging Giants
Brazil Global Network, KPMG Private
Enterprise, KPMG International
Chile Australia
Uruguay
New Zealand
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About us
About KPMG Private Enterprise
You know KPMG. You might not know KPMG Private Enterprise. KPMG Private Enterprise advisers in KPMG firms around the world are
dedicated to working with you and your business, no matter where you are in your growth journey — whether you’re looking to reach new
heights, embrace technology, plan for an exit, or manage the transition of wealth or your business to the next generation. You gain access to
KPMG’s global resources through a single point of contact — a trusted adviser to your company. It is a local touch with a global reach.
KPMG Private Enterprise’s global network for emerging giants has extensive knowledge and experience working with the startup ecosystem.
Whether you are looking to establish your operations, raise capital, expand abroad, or simply comply with regulatory requirements — we can
help. From seed to speed, we’re here throughout your journey.
Register for the KPMG Private Enterprise Global Tech Innovators 2022 Finals!
At KPMG Private Enterprise we understand the impact that technology trailblazers like you are having on the world. Whether yours is a pure
technology company or you’re tech-enabled, tech-led or tech-driven, we want to hear from you.
We’re inviting you to compete with technology entrepreneurs across the globe. You’ll pitch your innovations and present your growth
ambitions to a panel of industry experts.
Wherever you are in your business lifecycle — from early-stage growth to getting ready to accelerate your expansion — our aim is to help
you achieve your ambition and take your business to the next level.
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We acknowledge the contribution of the following individuals who assisted in the development of this publication:
• Jonathan Lavender, Global Head, KPMG Private Enterprise, KPMG International • Jussi Paski, Head of Startup & Venture Services, KPMG in Finland
• Conor Moore, Head of KPMG Private Enterprise in the Americas, Global Leader, • Lauren Taylor, Fintech Manager, KPMG in the UK
Emerging Giants, KPMG Private Enterprise, KPMG International & Partner, KPMG
• Lindsay Hull, Senior Director, Emerging Giants Global Network, KPMG Private
in the US
Enterprise, KPMG International
• Amanda Price, Head of High Growth Ventures, KPMG in Australia
• Melany Eli, Managing Director, Marketing and Communications, KPMG Private
• Amy Burnett, Head of KPMG Private Enterprise Access, KPMG in the UK Enterprise, KPMG International
• Anna Scally, Partner, Head of Technology & Media, KPMG in Ireland • Nicole Lowe, Head of Emerging Giants, KPMG in the UK
• Dr. Ashkan Kalantary, Deal Advisory, M&A GrowthTech & Ventures, KPMG in • Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India
Germany
• Peter Kehrli, Partner, KPMG in the US
• Dina Pasca-Raz, Head of Technology, Head of International Tax, KPMG in Israel
• Robert Baxter, Head of Corporate Finance, KPMG in the UK
• Diogo Garcia Correia, Venture Capital & Emerging Giants Business Development,
• Rodrigo Guedes, Managing Director, KPMG in Brazil
KPMG in Brazil
• Ryan Forster, Partner, KPMG in Canada
• Hiroshi Abe, Executive Board Member, Partner, KPMG in Japan
• Samuel Lush, Director, Private Equity Group, KPMG in the US
• Irene Chu, Partner & Head of New Economy and Life Sciences, Hong Kong (SAR)
Region, KPMG China • Sunil Mistry, Partner, KPMG Private Enterprise, Technology, Media &
Telecommunications (TMT), KPMG in Canada
• Jules Walker, Senior Director, Business Development, KPMG in the US
• Tim Dümichen, Partner, KPMG in Germany
• Warren Middleton, Lead Partner for Emerging Giants, Center of Excellence in the
UK, KPMG in the UK
• Zoe Shi, Partner, KPMG China
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PitchBook defines VC funds as pools of capital raised for the purpose of investing in the equity of startup companies. In • Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both firms
addition to funds raised by traditional VC firms, PitchBook also includes funds raised by any institution with the primary investing via established CVC arms or corporations making equity investments off balance sheets or whatever other
intent stated above. Funds identifying as growthstage vehicles are classified as PE funds and are not included in this non-CVC method is employed.
report. A fund’s location is determined by the country in which the fund’s investment team is based; if that information is Exits
not explicitly known, the HQ country of the fund’s general partner is used. Only funds based in the United States that
have held their final close are included in the fundraising numbers. The entirety of a fund’s committed capital is PitchBook includes the first majority liquidity event for holders of equity securities of venture-backed companies. This
attributed to the year of the final close of the fund. Interim close amounts are not recorded in the year of the interim includes events where there is a public market for the shares (IPO) or the acquisition of majority of the equity by another
close. 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
Deals 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” to accommodate
PitchBook includes equity investments into startup companies from an outside source. Investment does not necessarily the different ways we track VC-backed companies’ transitions to the public markets. To give readers a fuller picture of
have to be taken from an institutional investor. This can include investment from individual angel investors, angel the companies that go public, this updated grouping includes IPOs, direct listings, and reverse mergers via SPACs.
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 the accelerator continues to invest in follow-on In the edition of the KPMG Venture Pulse covering Q1 2019 and all ensuing, PitchBook’s methodology regarding aggregate
rounds, those further financings are included. All financings are of companies headquartered in the US, with any exit values changed. Instead of utilizing the size of an IPO as the exit value, instead the prevaluation of an IPO, based upon
reference to “ecosystem” defined as the combined statistical area (CSA). PitchBook includes deals that include partial ordinary shares outstanding, was utilized. This has led to a significant change in aggregate exit values in all subsequent
debt and equity. editions yet is more reflective of how the industry views the true size of an exit via public markets. In the edition of the KPMG
Venture Pulse covering Q1 2021 and all ensuing, the IPO exit type was updated to include all types of public listings,
including special purpose acquisition companies (SPACs) and other reverse mergers.
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home.kpmg/venturepulse
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information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation.
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