The number of deals, projected to be 6,904 for Q2, will also drop by 22% from the previous quarter, the report said.
At Déjà Partners, we believe that the projected Q2 drop off in both venture funding and the number of deals is yet more evidence that changes in the macro-economic environment are already having an impact on technology businesses.
Déjà Partners expects these changes to become more pronounced in the near future. When it comes to early stage companies, the fundraising process can be a long and difficult one and we believe that it’s only going to get harder in the current market. For early stage companies considering a Seed or Series A Funding, Déjà Partners is advising leadership teams to start assessing their business situation now and take the necessary actions to extend their cash runway.
With constrained capital supply, there will be fewer companies that are able to secure funding. And for those that are able to find investors, the fundraising process is likely to take longer. This is particularly true for companies that are not well-established or that are working in new or niche markets.
However, Déjà Partners does see some opportunity for companies that are able to offer a unique solution or that have a strong team in place. So, while the current market conditions may be challenging, there is still reason to believe that early stage companies can successfully fundraise.
At Déjà Partners, our team has a proven track record of success in both good times and bad, and we are confident that we can help you weather this storm and come out the other side stronger than ever. Contact us today to learn more about how we can help you achieve fundraising success in this increasingly challenging environment.