Key Takeaways
Macroeconomic conditions, geopolitical uncertainty and a bear market are shifting the venture landscape after two record-breaking years.
6X
The median unicorn’s annual revenue compared with dot-com-era IPO companies.
$82B
Amount US VC funds raised in H1 2022 — a record for any six-month period.
82%
Percentage of US VC-backed enterprise software companies with YoY revenue growth.
Growth amid uncertainty
The consumer internet and frontier tech segments have sustained slower revenue growth amid declining consumer confidence and slowing demand.
Although US VC-backed tech companies are still spending at near-record levels, we’re starting to see signs they’re refocusing on the core and cutting expenses.
Hybrid funds recalibrate
The downturn in public markets led to price drops in hybrids’ portfolios — both public and private — and a slowdown in their late-stage investing.
Hybrids are increasingly active at the early stage, which historically is more shielded from public market turbulence.
The next wave of innovation
Tech is no longer a vertical category but horizontally integrated into every aspect of the economy. As a result, challenging market conditions may not impact the technology sector as profoundly as in previous cycles.
Top tech talent, who benefitted from a record exit environment in 2021, have substantial capital to start companies and spur the next wave of innovation — a similar trend following the dot-com bubble and global financial crisis.
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Written and researched by SVB experts
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