LONDON — Venture capital funding for US-based startups plummeted in the first nine months of the year, according to data and information firm GlobalData.
A total of 8,142 financing deals were announced during the period, for a total of $160.1 billion, marking a 23% drop in deal volume and a 33% drop in the value of financing by compared to the same period of the previous year. Total funding value rose in September, up 19% to $11.9 billion from $10 billion in August, despite a 13% drop in deal volume from the previous month. Significant investments in September included $310 million in Series E funding raised by indoor farming operator Gotham Greens. Additionally, True Food Kitchen, a dining and lifestyle brand with 42 locations in 17 states, has raised over $100 million in funding to support accelerated growth. Small food and beverage deals in September included a Series A funding round for sparkling water brand Aura Bora, a $13 million Series A funding round for Japanese-inspired sauce maker Bachan’s and a $3 million seed funding round for condiment startup Red Clay Hot Sauce.
“Although the United States experienced a year-over-year decline in venture capital funding activity during the first quarter of 2022, the growth in the value of funding in September 2022 and the announcement of a billion-dollar deal (for Terawatt Infrastructure) during the month suggest that despite their caution, venture capitalists still view it as their preferred investment destination,” said Aurojyoti Bose, Principal Analyst. at GlobalData “In fact, the US was the only market to see a $1 billion deal in September, while several other key markets, including China, saw a decline in capital raisings.”