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Beginners who hope to grow A nine-figure future was their best temper; Venture funding arrangements worth $100 million or more are disappearing — fast.
A few years ago, nine-figure venture funding arrangements were common. In my Crunchbase news days, we started calling them “super” rounds so we wouldn’t have to specify their size. Hell, we regularly report rounds worth several hundred million or more. Good times.
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With the 2021 peak of venture growth now more than a year away, those days are clearly behind us. And while it may take a lot longer to deflate the $100 million round bubble than I expected, if trends continue, nine-figure quick funding arrangements will be rare enough to warrant our attention.
The 100 million dollar round is the Icarian saga of the fall from fame. Pitchbook data collected by TechCrunch this morning tells a simple story: From a steady base of 75 funding events per quarter through 2019 and most of 2020, the pace at which investors poured capital into startups exploded in nine-digit chunks through 2021. Only by decaying to the previous levels in roughly the time it took to reach the highest level.
The data is strong: From 75 $100 million or more funding arrangements in Q1 2019 to 426 in Q4 2021, the pace of nine-figure venture deals increased to 57 in the first quarter of 2023.
Naturally, we’ll see the current quarterly totals rise in the coming weeks, but Q4 2022 is set to close out Q1 at 157.
Here’s a chart of mega-round deal sizes from early 2019 to date:
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