The update also confirmed that Square Peg has “slowed the cadence of investing in both new and existing portfolio companies” – a strategy that Blackbird’s Niki Scevak doesn’t agree with (more in thread):
The problem for an investor slowing angola cell phone database down in 2022 is that it burdens you with a commitment to determining a level of pacing. Besides a high likelihood of not buying low, there is a mental load that endangers good, fundamental investment decision-making
The data, however, aligns with Square Peg’s sentiment
Startup investment last month was down 52% compared to the same time last year, according to Cut Through Venture. June saw $408.6m invested across 44 deals, bringing the total raised in Q2 to $1.23bn (for context, $1.6bn was raised in Feb alone).
Recognising it’s not a great time to be raising, there have been a number of layoffs at venture-backed companies as they reduce burn rates to extend runway.
Sadly, the casualties have started, too. Neobank Volt was forced to close after struggling to raise sufficient capital (class action lawyers are now circling). Zip shut down money management app Pocketbook.
On the bright side, this means startups will have a better chance at recruiting great talent.
But not out! Fear not, it’s not all doom and gloom
There’s still solid early and mid-stage raising activity. A few picks this month:
mx51 raised $32.5m for its white-label bank-grade Payments as a Service platform.
Hivery, an “optimisation platform” for retailers, raised US$30m led by Tiger Global.
Quantifi Photonics raised US$15m led by Intel for its high-density photonics test and measurement solutions.
FileInvite raised NZ$10m led by Icehouse Ventures for its document collection platform.
Business insurance startup Upcover raised $2.7m equity and $2m debt.
BlendAI, which simplifies and centralises online advertising for ecommerce stores, raised $1.5m led by EVP.
Plus, new money is flowing into the ecosystem, with Archangel Ventures raising $25m for its seed-stage fund, and Silicon Valley-based SVG Ventures launching a $50m AgTech fund for ANZ.
Add to the mix well-established VCs currently raising new funds—Tidal
Blackbird, Square Peg, OIF and OneVentures—and there will continue to be plenty of dry powder to deploy. The future still looks bright.
If you’re thinking of raising capital at some point, but don’t have any investors in your network, consider applying to attend Rampersand’s Giant Warm Intro. Applications close on Wednesday, 27 July.