Despite persevering with speak about a attainable recession, slumping tech stocks and a slowdown in the world of startup investing, the enterprise of funding was positively buzzing last week. After slowing way down last spring, enterprise outfits disclosed a surprising $8 billion in new capital commitments in the span of simply 5 days.
Consider the next: NEA revealed that it closed its two latest funds including as much as $6.2 billion; Cowboy Ventures announced two funds totaling $260 million; and FJ Labs also disclosed two funds totaling $260 million. Then there’s Sapphire Sport (it closed a second fund of $181 million), Volition Capital (it announced $675 million for its fifth fund), Kearny Jackson ($14 million) and Dimension ($350 million). Even non-U.S. outfits got into the act, together with Highland Europe, which announced a brand new €1 billion fund, and a Japanese chemical giant that revealed a $100 million fund.
So what’s occurring precisely? Are we already via this downturn? While not possible to know, the flurry of exercise probably owes itself as an alternative to a couple unsurprising issues.
For starters, quite a lot of “new” funds have been really closed last year however not announced for one cause or one other. Defy.vc, for instance, an early-stage enterprise outfit based mostly in Woodside, California, said it’s now investing out of a $300 million third fund (in contrast with a $151 million debut fund and a $262 million sophomore fund that it closed in 2019).
Defy really closed the fund in the center of last year however didn’t say something till now as a result of it was actively investing its earlier fund till a couple of months in the past, co-founder Neil Sequeira said. At the time, he said, the second didn’t appear right.
“It was an interesting time in the NASDAQ and [regarding] world geopolitical issues,” he said, referring to the confluence of occasions that made 2022 a year that many would sooner overlook, from Russia’s invasion of Ukraine and disrupted supply chains to surging inflation across the world.
Is enterprise funding already back? by Connie Loizos initially printed on TechCrunch