Nikita Korobeynik9 min

STRV Tech Trends Report December '22

ProductDec 14, 2022

Product

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Dec 14, 2022

Nikita KorobeynikHead of Marketing

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It’s a “teetering on exhaustion” kinda time. Funding is smaller, the steadfast fintech industry has fallen behind biotechnology and although November saw more companies nab funding than last year, total funding is down by 55%. Anyway, Happy Holidays!

Around 60,000 tech employees were let go this past month, setting a 2022 record as glum as Bitcoin’s 80% decrease in value since November of last year. But the tech industry is relentless — with Google updates, Airbnb features and even an OnlyFans partnership promising us the world. If that world is one with less Twitter news, we’re in.

Below are the month’s most notable news and numbers, including year-on-year (YoY) and month-to-month comparisons as well as leading industries and companies worthy of attention.

General Overview

This November, the total number of companies that raised funding was 1,361, compared to 1,203 in November of last year. This is a 13% YoY increase. The total funding raised was $20.55 billion, with a 55% YoY increase; last year, November clocked in at $45.67 billion. The median deal size was $5 million, a 33% YoY decrease compared to the $7.5 million in November of last year.

Leading Countries

*based on the number of companies that raised funding (not total funding)

1. USA — with 710 companies (12% YoY increase), $13.03B in cumulative investment (56% YoY decrease) and a median deal size of $6.5M (35% YoY decrease)

2. UK — with 114 companies (16% YoY increase), $1.44B in cumulative investment (49% YoY decrease) and a median deal size of $3.8M (29% YoY decrease)

3. Canada — with 83 companies (73% YoY increase), $573M in cumulative investment (57% YoY decrease) and a median deal size of $2M (63% YoY decrease)

4. India — with 61 companies (2% YoY decrease), $494M in cumulative investment (61% YoY decrease) and a median deal size of $2.5M 44% YoY decrease)

5. Germany — with 40 companies (on par with last year), $649M in cumulative investment (60% YoY decrease) and a median deal size of $9.8M (16% YoY increase)

Conclusion: Even though more companies are receiving investments this year, the funding for November got more than 2x smaller compared to both '21 and last month. Consequently, all countries above are experiencing fatigue — with the only highlight being Canada, which has given breed to many more startups this year.

Leading Industries

1. Fintech

127 companies (14% YoY decrease), $2.08B in cumulative investment (69% YoY decrease) and a median deal size of $10.5M (14% YoY decrease).

The top 3 biggest funding rounds are attributed to Toronto Dominion Bank Group (offers a full range of financial products and services) - $1.75B (total funding: $1.75B), Resolution Life (life and annuity insurance consolidation company focused on acquiring life insurance policies) - $500M  (total funding: $500M) and Grit (real estate investment, management and development company) - $300.3M (total funding: $300.3M).

2. AI (up one spot)

123 companies (12% YoY decrease), $1.77B in cumulative investment (57% YoY decrease) and a median deal size of $7.8M (22% YoY decrease).

The top 3 biggest funding rounds are attributed to Automation Anywhere (semiconductor company providing connectivity solutions for intelligent systems) - $150M (total funding: $206.4M), Lendbuzz (AI-based auto finance platform for people with a thin or no credit history) - $150M (total funding: $894.3M) and WEKA (global data management provider delivering a cloud-native, software-based data platform for next-gen workloads) - $135M (total funding: $293.9M).

3. Biotechnology (down one spot)

112 companies (40% YoY increase), $2.81B in cumulative investment (26% YoY decrease) and a median deal size of $9.75M (35% YoY decrease).

The top 3 biggest funding rounds are attributed to New Amsterdam Pharma (clinical-stage company focused on the research and development of transformative therapies for cardio-metabolic diseases) - $235M (total funding: $429.4M), Solugen (carbon negative molecule factory that replaces petroleum-based products with plant-derived substitutes) - $200M (total funding: $635.2M) and Paragon Biosciences (global healthcare company committed to accelerating biomedical research) - $185M (total funding: $282.6M).

4. Ecommerce

102 companies (4% YoY decrease), $1.22B in cumulative investment (70% YoY decrease) and a median deal size of $4M (74% YoY decrease).

The top 3 biggest funding rounds are attributed to Balance (digital payments platform making the B2B online purchasing experience delightful for buyers and vendors) - $700M (total funding: $1.45B), Dwight Funding (capital partner for early and growth-stage businesses in ecommerce, food & beverage, general CPG and SaaS) - $100M (total funding: $100M) and Prosper Marketplace (online lending platform connecting people who want to borrow money with individuals and institutions) - $75M (total funding: $490.5M).

5. Healthcare

86 companies (39% YoY increase), $591M in cumulative investment (44% YoY decrease) and a median deal size of $5M (22% YoY decrease).

The top 3 biggest funding rounds are attributed to NCIRE (nonprofit research institute specializing in veterans care, pioneering new treatments, military medicine and care) - $147M (total funding: $147M), BetterVet (veterinary startup providing home visits and telehealth services) - $40M (total funding: $40M) and BeatO (health monitoring app that helps diabetic patients track their glucose levels) - $33.1M (total funding: $47.5M).

Conclusion: Similarly to leading countries, key tech industries are now receiving less investor love, with the ever-powerful fintech trailing behind biotechnology in the total accumulated funds.

Monthly Highlights

The New Spam: Twitter News

Layoffs Hit Record “Oh No”

To Crypto or Not to Crypto

Breakneck Tech on Deck

It’s All Fun and Games…

…Until Someone Gets Hurt

Remember to Like and Subscribe

The More You Know

To keep you entirely caught up, a few highlights worthy of attention:

Startups to Watch

Arta Finance

($90M in latest funding) Arta Finance (FKA Arbo Works) is creating a digital family office — where accredited investors that may not be part of a family office will have access to alternative assets that include investments such as private equity, venture capital, private debt and real estate. The funding will help the company expand its base of customers and global reach.

PhotoRoom

($19M in latest funding) PhotoRoom is an AI-enabled image-capturing app that lets users create studio-quality product pictures in seconds by removing, replacing or blurring backgrounds. The app has been downloaded 40+ million times worldwide. The company will use the funds to develop its existing software, improve AI features and keep hiring talent across Europe.

Daylight

($15M in latest funding) Daylight is a digital banking platform designed to build financial products and services that help queer people. The company intends to use the funds to expand its offering to support LGBTQ+ people looking to start and grow their families.

Wesper

($9.6M in latest funding) Wesper is an at-home sleep lab and a medical app that provides wellness and helps grow sleep testing services. Its wireless biometric sensors and algorithms enable at-home medical diagnosis with professional services. The company will use the funds to accelerate growth and revenue, and to continue developing diagnostic sensing tech.

SigmaOS

($4M in latest funding) SigmaOS is a new type of browser designed for founders, researchers and content creators to make it better and faster to work on the web. The team is a YC S21 alumnus deemed “Product of the Month” on Product Hunt. The company intends to use the funds to expand its team and accelerate the development and roll-out of its product.

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