US Venture Capital Stays Strong While Global Funding Declines Sharply
While US venture capital activity and software startup investments remain surprisingly robust, global funding data tells a much darker story of rapid contraction.
United States venture capital activity holds up better than anticipated, with software startups showing particularly robust interest. Since most startups are software companies, this healthy segment indicates that the broader tech startup ecosystem in the US remains relatively stable despite broader economic concerns.
However, this positive American trend does not translate to the rest of the world. Global data reveals that while seed and angel funding stays somewhat strong at $7.4 billion in Q3 2022, early-stage capital drops rapidly from $55.6 billion in Q3 2021 to just $33.8 billion.
The situation is even worse for late-stage startups globally, with funding plummeting from $108.4 billion a year ago to a mere $39.9 billion in Q3 2022. Because the US market is included in these declining global totals but is still performing well, the data indicates that startup markets outside the United States are actually under severe pressure.