The latest figures on Australian tech start-up funding show only $661 million was raised in the first three months of 2023, a huge drop on the previous quarter.
Global uncertainty in tech sector funding has firmly arrived on Australian shores, with new data showing a major slump in venture capital deals in the first quarter of 2023, pushing investment values to their lowest point since the third quarter of 2020.figures reveal that across 82 deals, only $661 million was raised in the first three months of 2023, compared with $1.8 billion in the final quarter of 2022.
Square Peg Capital co-founder and partner Paul Bassat said the decline reflected the lower number of larger late-stage rounds being completed.“There is obviously a decline in the number of companies being funded, but it’s less than the decline in total amount raised,” he told“It’s a function of a few things – there were a lot of mega rounds occurring in 2021 and late 2020, and a lot of companies haven’t needed to come to market since. And generally, we’re in a tougher market ...
The data showed seed stage deals remained resilient, while later stage funding rounds were few and far between.The crown for the largest funding round in the first few months of the year went to carbon farming start-up Loam Bio, which banked $US75 million in a series B raise co-led by Chris Sacca’s Lowercarbon Capital and Wollemi Capital.Reflecting how challenging the market is for later stage companies to raise, the second-largest round in the quarter was completed by fintech Till Payments.
Mr Cameron said though late-stage rounds were closing in as little as a few weeks in 2021, now they were typically taking two to three months.
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