Venture Funding Down 65%

Raising money just got harder. Global venture capital funding fell 65% in February from a year prior, according to a new report from S&P Global Market Intelligence.

Get the blog before anyone else…subscribe!

As an investor, I see the funding freeze every day. Many startups I meet are completely out of money and facing liquidation.

Here are some trends I’m seeing in today’s market:

Fewer Deals Getting Done

In general, I see a lot fewer deals happening.

Everyone has slowed down, from big VC firms to syndicates to individuals. Deal volume seems to be down by around half.

Even when a great company is raising and the deal gets done, it often doesn’t fill up.

Valuations Are Down

In 2021, I routinely saw seed stage deals at $25 million, $50 million, even $100 million!

Now, a typical seed stage deal is more like $8 to $12 million. I don’t see many above $18 million.

Strong seed stage companies usually have about $200,000 to $500,000 a year in revenue.

Poor Business Models Are Unfundable

In 2021, all you needed was growth. No one cared how you got it.

Today, growth has to be cash efficient. If your unit economics aren’t solid, it’s hard to raise.

Let’s say it costs you as much to acquire a customer as you’ll ever make from them. A business like that can never be profitable.

VC’s don’t want to throw more money at a broken business model.

Pre-Revenue Companies Are In a Tough Spot

If you have no revenue, you’re totally dependent on outside funding. That funding is now much harder to get.

What’s more, you don’t have a revenue track record to show investors.

Getting those first customers just got a lot more important.

Profitability Is the Trump Card

If you can tell a VC you’re profitable in 2023, you’ll impress him. You also won’t need his money.

That’s a great position to be in, especially in a down market. You can dictate the terms or just wait until markets recover.

2023 belongs to the founders that can control their own destiny.

What are you seeing in markets today?

Leave a comment and let me know!

More on tech:

Beware Pre-Revenue Companies

Build in a Small Town!

Everything You Always Wanted to Know About Venture (But Were Afraid to Ask)

Get the blog before anyone else…subscribe!

If you found this post interesting, please share it on Twitter/Reddit/etc. This helps more people find the blog! 

Save Money on Stuff I Use:


This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

Misfits Market

I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $15 on your first order. 


3 thoughts on “Venture Funding Down 65%”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s