In the United States at least
On the heels news that the US venture capital market’s third quarter was far from catastrophic makes it clear that while investment in startups has slowed, it’s still a good time to build a software company.
thanks to a new bundle of data from SVB, we can see very clearly that the macro picture for IT is robust and that venture capitalists have an ocean of capital to get to work. The combination appears to support investment in software startups — software as a service, or SaaS, in the modern context — which will make 2022 the second-best year ever in the United States.
Some declines are obvious; you will no longer get the venture capital results of 2021 for some time. But that hasn’t stopped valuations and deal sizes from ticking higher in most well-trodden startup phases. Downturns are also declining as venture capitalists react, perhaps somewhat surprisingly, to a rising interest rate environment and a general sell-off in the value of technology stocks.
The Exchange explores startups, markets and money.
Read it every morning on australiabusinessblog.com+ or get The Exchange’s newsletter every Saturday.
Not all data is sunny. For SaaS startups, some of their valuation gains between rounds may diminish slightly if they’re raising today, and yes, we’ll see fewer US SaaS deals this year. But if you thought 2020 was a good year for overall startup investment, you’re going to love 2022.