Startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February

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Startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February, representing a decrease both month over month and year over year, according to Morgan Stanley.

The slowdown in PE-VC funding has been dramatic, both in terms of funds raised and the number of deals completed. Startup funding fell by more than 83%, from $3.6 billion in February 2022 to $596 million in February 2023. According to the report, the total number of transactions fell from 103 to 35.

However, the decrease in investments in startups by PE-VC firms is not a new trend. In July of last year, fundraising plummeted. The total investment by PE-VC firms between January and June 2022 was $17.9 billion. However, startups only raised $5.4 billion between July and December 2022.

Fintech and food startups have emerged as top PE-VC picks.

Fintech and food startups emerged as the month’s top investments, accounting for nearly 60% of total investments.

In February, six fintech startups raised a total of $280 million: Insurancedekho, PhonePe, Mintoak, Stable Money, LoanTap, and LoanKuber.
According to the report, investment trends have shifted. While 66% of fintech investments went to lending businesses last year, 63% of investments in February 2023 went to fintechs providing payment gateway solutions.

According to Morgan Stanley, startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February, representing a decrease both month over month and year over year.

FreshToHome, a single startup, raised $104 million in the restaurant & food category. Its Series D funding round was led by Amazon Smbhav Venture Fund and will be used to open 100 retail locations. The remaining $212 million was raised in various categories such as ecommerce, edtech, enterprise tech, and others.

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We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February

Startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February, representing a decrease both month over month and year over year, according to Morgan Stanley.

The slowdown in PE-VC funding has been dramatic, both in terms of funds raised and the number of deals completed. Startup funding fell by more than 83%, from $3.6 billion in February 2022 to $596 million in February 2023. According to the report, the total number of transactions fell from 103 to 35.

However, the decrease in investments in startups by PE-VC firms is not a new trend. In July of last year, fundraising plummeted. The total investment by PE-VC firms between January and June 2022 was $17.9 billion. However, startups only raised $5.4 billion between July and December 2022.

Fintech and food startups have emerged as top PE-VC picks.

Fintech and food startups emerged as the month’s top investments, accounting for nearly 60% of total investments.

In February, six fintech startups raised a total of $280 million: Insurancedekho, PhonePe, Mintoak, Stable Money, LoanTap, and LoanKuber.
According to the report, investment trends have shifted. While 66% of fintech investments went to lending businesses last year, 63% of investments in February 2023 went to fintechs providing payment gateway solutions.

According to Morgan Stanley, startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February, representing a decrease both month over month and year over year.

FreshToHome, a single startup, raised $104 million in the restaurant & food category. Its Series D funding round was led by Amazon Smbhav Venture Fund and will be used to open 100 retail locations. The remaining $212 million was raised in various categories such as ecommerce, edtech, enterprise tech, and others.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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