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Nervous Investors Drive VC Funding for Startups Down 55%

US startups raised $37 billion from venture capitalists in the first quarter of this year, the lowest amount in 13 consecutive quarters, according to data from research firm PitchBook and the National Venture Capital Association. Investors have reduced both the size and number of checks they write. The first quarter marked the lowest number of deals, fewer than 3,000, in more than five years. 

Funding to tech companies has slowed at the same time that investors have found it harder to make money by backing startups. Exit activity, comprising initial public offerings and sales to other companies, dropped to $71.4 billion in 2022, the first instance of a dip below $100 billion in six years, the PitchBook data found.

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