Nikita Korobeynik8 min

STRV Tech Trends Report January '23

ProductJan 12, 2023

So, where did 2022 leave us? Let’s take a look at the year’s recap, give it up for the UK and the surprisingly feisty energy industry coming in hot in December — and welcome biotech to the top of the wobbly VC pyramid.

In 2023 so far, pounding out new features is the name of the game. Instagram, Microsoft, Apple Music, Amazon… all hustling for our unceasing love. AI and robots are infiltrating the software development industry and law enforcement (yep), layoffs refuse to just stop already and Twitter remains the symphony of chaos we’ve begrudgingly embraced as the new norm.

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.

2022 Recap

Before we dive into the funding results of this past month, let’s begin with a recap of the last year — in numbers.

2022 outperformed the previous year ($341.25 in 2021) despite the slowdown in the second half. The USA was the undisputed funding world champion and fintech held its ground at the top of the food chain, despite intensifying competition breathing down its neck.

Chart-Jan-4

We now return you to our regular programming.

General Overview

Chart-Jan-1

This December, the total number of companies that raised funding was 1,142, compared to 1,172 in December of the previous year. This is a 3% YoY decrease. The total funding raised was $20.08 billion, with a 41% YoY decrease; in 2021, December clocked in at $37.2 billion. The median deal size was $4.95 million, on par with the previous year.

Leading Countries

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

Chart-Jan-2

1. USA — with 522 companies (9% YoY decrease), $10.69B in cumulative investment (55% YoY decrease) and a median deal size of $6M (29% YoY decrease)

2. UK — with 90 companies (14% YoY increase), $2.11B in cumulative investment (73% YoY increase) and a median deal size of $3.29M (29% YoY decrease)

3. Canada — with 69 companies (50% YoY increase), $1.25B in cumulative investment (52% YoY decrease) and a median deal size of $3.12M (53% YoY decrease)

4. India — with 54 companies (24% YoY decrease), $305M in cumulative investment (79% YoY decrease) and a median deal size of $2.91M (71% YoY decrease)

5. Germany — with 44 companies (12% YoY decrease), $499M in cumulative investment (75% YoY decrease) and a median deal size of $6.37M (105% YoY increase)

Conclusion: Total funding decreased by almost 2x compared to 2021 with virtually the same number of companies. India suffered the most while the UK showed incredible resilience in tough times.

Leading Industries

Chart-Jan-3

1. Biotech (up two spots)

122 companies (39% YoY increase), $3.36B in cumulative investment (31% YoY decrease) and a median deal size of $10.72M (8% YoY decrease).

The top 3 biggest funding rounds are attributed to Madrigal Pharmaceuticals (develops therapeutics to help patients with metabolic and fatty liver diseases) - $259M (total funding: $397.4M), Replimune Group (develops the next generation of oncolytic immunotherapies for cancer treatment) - $225M  (total funding: $512M) and Avidity Biosciences (biotech company developing oligonucleotide-based therapies) - $207M (total funding: $347.1M).

2. Fintech (down one spot)

116 companies (26% YoY decrease), $2.32B in cumulative investment (63% YoY decrease) and a median deal size of $5M (2% YoY increase).

The top 3 biggest funding rounds are attributed to Novicap (focused on providing end-to-end working capital solutions to businesses) - $211.1M (total funding: $214.1M), Allica Bank (delivers digital banking services for small and medium-sized businesses) - $121.9M (total funding: $404.4M) and Nesto (digital mortgage platform helping lenders improve and streamline operations) - $80M (total funding: $151.4M).

3. AI (down one spot)

99 companies (9% YoY increase), $1.16B in cumulative investment (43% YoY decrease) and a median deal size of $5.1M (15% YoY decrease).

The top 3 biggest funding rounds are attributed to Zappi (helps global brands make faster and better decisions to drive business growth) - $170M (total funding: $192.7M), CoreWeave (cloud provider that offers flexible compute resources) - $100M (total funding: $155.5M) and NotCo (The Not Company) (food tech company producing plant-based meat and dairy substitutes) - $70M (total funding: $433M).

4. Healthcare (up one spot)

72 companies (11% YoY increase), $922M in cumulative investment (12% YoY decrease) and a median deal size of $3.29M (38% YoY decrease).

The top 3 biggest funding rounds are attributed to Karyopharm Therapeutics (clinical-stage pharmaceutical company developing drugs for the treatment of cancer and other major diseases) - $165M (total funding: $546.7M), UpStream Care (primary care services and tech company providing physicians with support and systems) - $140M (total funding: $185M) and HistoSonics (developing non-invasive medical devices, interventional radiology and surgical robotics) - $85M (total funding: $226.8M).

5. Energy (new)

65 companies (110% YoY increase), $5.88B in cumulative investment (40% YoY increase) and a median deal size of $9.43M (10% YoY increase).

The top 3 biggest funding rounds are attributed to Danske Commodities (independent energy trading house) - $3.7B (total funding: $3.7B), Svante (carbon capture tech for capturing CO2 directly at its sources) - $318M (total funding: $474M) and Saudi Tabreed (offers cooling services through a wide range of energy-saving tech) - $250M (total funding: $264.6M).

Conclusion: With fintech dethroned, biotech is now on top — in line with our foreshadowing in previous reports. Energy made its first appearance on our list with an astonishing number of accumulated investments, representing almost 30% of December’s funding.

Monthly Highlights

Hot off the Press

On the Agenda

Bon Voyage

Twit-twit

News3

Binge This

Oopsy Daisy

Startups to Watch

Runway

($50M in latest funding) Runway is a next-generation video editing solution powered by machine learning that reduces the costs of creating visual media across creative industries. The funding will be used for broadening development of its robust suite of tools, incorporating an in-house creative agency and more.

X1

($15M in latest funding) X1 manufactures a smart credit card made with 17 grams of sleek, stainless steel. The funding will be used to accelerate growth and roll out new financial services for its members, starting with a new investing platform allowing cardholders to buy stocks with their reward points.

CLMBR

($8.8M in latest funding) CLMBR offers a vertical climbing machine, featuring a large-format touch display with on-demand classes. The funding will be used for responsible growth goals and market expansion.

Artifact

($5M in latest funding) Artifact is a platform for recording family stories via audio. Its interviewers conduct professional interviews with studio-quality edits. The funding will be used to accelerate growth and incorporate new features.

Runna

($2.4M in latest funding) Runna is a personalized running coach app that provides custom running programs for complete beginners up to those training for a marathon. The funding will be used to grow Runna’s product in the UK and the US.

Share this article



Sign up to our newsletter

Monthly updates, real stuff, our views. No BS.