Nikita Korobeynik7 min

STRV Tech Trends Report March '23

ProductMar 14, 2023

In a bit of good news, the tech sector’s layoffs in February were lower than the previous month and overall funding raised saw a slight increase — although the total amount invested was three times less compared to ‘22.

Biotech takes back the top spot in leading industries. Spotify, TikTok, YouTube and other apps occupying your home screen are pounding out new features. Meta's Q4 revenue surprised with a 20% share surge. And look out, or just look — ‘cause Nokia is back in a fancy new getup.

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 February, the total number of companies that raised funding was 1,089, compared to 1,187 in February of the previous year. This is an 8% YoY decrease. The total funding raised was $12.84 billion, with a 62% YoY decrease; in 2022, February clocked in at $34.19 billion. The median deal size was $4.6 million, a 23% YoY decrease compared to the $6.8 million in February of last year.

Leading Countries

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

1. USA — with 543 companies (16% YoY decrease), $7.25B in cumulative investment (65% YoY decrease) and a median deal size of $5M (29% YoY decrease)

2. UK — with 84 companies (26% YoY decrease), $1.14B in cumulative investment (59% YoY decrease) and a median deal size of $5M (26% YoY decrease)

3. Canada (up one spot) with 65 companies (on par with last year), $892M in cumulative investment (28% YoY decrease) and a median deal size of $5M (on par with last year)

4. India (down one spot) with 60 companies (on par with last year), $513M in cumulative investment (57% YoY decrease) and a median deal size of $2.8M (22% YoY increase)

5. Germany (new to list) with 48 companies (81% YoY decrease), $189M in cumulative investment (81% YoY decrease) and a median deal size of $3.2M (37% YoY decrease)

Conclusion: Funded companies and raised funding increased slightly from last month, but the total invested amount drastically decreased by almost three times compared to last year, affecting all countries. Canada and India have once again swapped spots.

Leading Industries

1. Biotech (up one spot)

102 companies (29% YoY increase), $1.97B in cumulative investment (22% YoY decrease) and a median deal size of $10.3M (23% YoY increase).

The top 3 biggest funding rounds are attributed to Roivant Sciences (biopharmaceutical company focused on developing medicines and healthcare tech for patients) - $200M (total funding: $2.3B), Supernus Pharmaceuticals (develops and commercializes products for treating the central nervous system) - $150M  (total funding: $689.5M) and Hemab (clinical-stage biotech company developing prophylactic therapeutics for serious, underserved bleeding and thrombotic disorders) - $135M (total funding: $190M).

2. Fintech (down one spot)

100 companies (38% YoY decrease), $1.7B in cumulative investment (74% YoY decrease) and a median deal size of $7M (on par with last year).

The top 3 biggest funding rounds are attributed to Juniper Square (operates an investment management platform for commercial real estate, private equity and VC companies) - $133M (total funding: $241M), WisdomTree (global financial innovator offering a diverse selection of exchange-traded products [ETPs], models and solutions) - $126.4M (total funding: $126.4M) and Carmoola (fast, eco-friendly car financing with online payment options and in-app management, using open banking and credit data to offer better value and green discounts) - $115.1M (total funding: $198M).

3. AI

85 companies (30% YoY decrease), $548M in cumulative investment (82% YoY decrease) and a median deal size of $4.6M (52% YoY decrease).

The top 3 biggest funding rounds are attributed to Ushur (cloud-based AI company that automates service workflows in the backend process and conversational interfaces) - $50M (total funding: $92M), Tome (productivity tool providing an AI-powered storytelling format for transforming ideas into visually appealing narratives) - $43M (total funding: $75.3M) and Apkudo (helps companies manage connected devices to maximize device value, minimize labor costs and reduce e-waste) - $37.5M (total funding: $65.9M).

4. Healthcare

80 companies (18% YoY increase), $731M in cumulative investment (44% YoY decrease) and a median deal size of $3.1M (54% YoY decrease).

The top 3 biggest funding rounds are attributed to Syngene (integrated contract research, development and manufacturing firm) - $145.2M (total funding: $207.7M), Vytalize Health (provides ACO solutions to help doctors accelerate the transition to value-based care) - $100M (total funding: $175.5M) and ImmunityBio (an offshoot of Soon-Shiong's NantWorks conglomerate, developing molecular-level cell-based treatments for diseases) - $50M (total funding: $389.7M).

5. Ecommerce

64 companies (29% YoY decrease), $754M in cumulative investment (68% YoY decrease) and a median deal size of $4.6M (43% YoY decrease).

The top 3 biggest funding rounds are attributed to Floward (online flowers and gifts ecommerce solution sourced from local and international brands with same-day delivery schedules) - $156M (total funding: $186.3M), LeafLink (wholesale management platform that connects cannabis brands and retailers) - $100M (total funding: $479M) and Gousto (online meal-kit manufacturer and retailer using AI and automation to provide extensive choice and personalization) - $60.1M (total funding: $651.6M).

Conclusion: Biotech takes the lead this month over fintech, with no other notable changes in rankings as the rest of the industries suffer from decreased investments.

Monthly Highlights

Old Dogs, New Tricks

Stonks

You Guys Good?

NewsGPT

Lay Off the Layoffs, Will Ya?

Layoffs in February decreased significantly, from ~85k to ~36k employees.

Startups to Watch

Tome

($43M in latest funding) Tome is an AI-powered storytelling productivity tool that helps users transform ideas into visually appealing narratives. The funding will be used to build more value for its growing community and hire additional ML, engineering, design and product talent.

Unyoked

($19.1M in latest funding) Unyoked provides wilderness cabins to promote eco-friendly and off-the-grid vacations. The funding will be used for expansion in the U.K., Scandinavia, Germany, Benelux, Austria and Switzerland.

Lavender

($11M in latest funding) Lavender is an AI email assistant software that helps write better sales emails by providing coaching, prospect research, email confirmation and more. The funding will be used to expand its team and introduce new AI-powered features.

AnswersNow

($11M in latest funding) AnswersNow offers personalized virtual ABA therapy to families with individuals with autism and other developmental disabilities. The funding will be used to expand the reach of its ABA therapy services across the U.S., to grow its skilled team of Ph.D. and Master’s-level clinicians and to improve the user experience of its interactive virtual platform.

Capsule

($4.8M in latest funding) Capsule is a video editing platform designed to produce short-form videos that look and feel more polished. The funding will be used to make key hires in engineering, product design and marketing to help commercialize its AI Studio product.

Share this article



Sign up to our newsletter

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