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Just as July plunged us deeper into the northern hemisphere in the summer heat, it also reinforced the downward trend in venture capital investment.
Last month, global VCs invested $28 billion, by Crunchbase, down 56% year-over-year from $63 billion last July, and down 34% from June. This is the lowest monthly total since November 2020.
Even so, many startups have managed to secure impressive funding. In particular, many of July’s biggest funding rounds went to climate-tech startups, which could prove particularly resilient in the downturn in venture capital.
- Northvolt, Europe’s largest battery maker, raised $2.75 billion, the biggest fundraiser of the month. Check out our interview with a Northvolt VP on how the company plans to increase battery production.
- Xpansiva carbon trading platform, raised $400 million in the biggest fundraiser of the quarter.
- Monolitha producer of clean hydrogen, was close behind with a $300 million round.
- TAE Technologies, a nuclear fusion startup, grossed $250 billion.
Zoom out: As has been the case throughout the ongoing venture capital downturn, investments are falling at all stages of the deal, but late-stage investments are falling faster than early-stage companies. In other words: the earlier the stage, the slower the decline.
Meanwhile, seed funding is actually at the top from one year to the next, as was also the case for Q2 as a whole. The category typically accounts for the smallest share of venture capital dollars — it was less than 10% in July — which plays to its advantage at a time when big splashy investments have come out.