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In the United States, at least
On the heels News that the U.S. venture capital market’s third quarter was a far cry from the doldrums made it clear that despite a slowdown in startup investment, it’s still a good time to build a software company.
Thanks to a new database from SVB, we can clearly see that the IT macro picture is strong and that venture capitalists have an ocean of capital to tap into. The combination appears to favor investment in software startups — software as a service, or SaaS in the modern context — making 2022 the second best year in the United States.
Some failures are obvious; You won’t get the 2021 venture capital results again for a while. But that doesn’t stop them from raising valuations and deal sizes on mostly well-regarded startups. Lower rounds are also declining as venture investors react, perhaps unsurprisingly to the rising interest rate environment and general selling of tech stocks.
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Not all information is sunny. If SaaS startups are busy raising today, they may see some of their valuation gains between rounds moderated, and yes, we’ll see fewer US SaaS deals this year. But if you thought 2020 was a good year for general startup investing, you’ll love 2022.
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