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The majority of investors slow down dealmaking in the first half of 2023.

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The majority of investors slow down dealmaking in the first half of 2023.

  • 13 Jul 2023

In the past two years, there has been a significant decrease in the amount of money and deals needed to be considered one of the most active startup investors.

According to Crunchbase data, the seven busiest global venture investors collectively led 80 rounds during the first half of 2023. This represents a 78% decrease from the same period last year, when the seven most active firms led 364 rounds.

The names at the top of our rankings have also seen significant change. Tiger Global Management and SoftBank have consistently topped the list of the most expensive and active startup investors, but both companies have sharply cut back in response to the market slump. In the meantime, Lightspeed Venture Partners, New Enterprise Associates, and Andreessen Horowitz have advanced.

during context, the seven most active lead venture and growth investors during the first half of 2023 are shown in the chart below:

Post-Seed Round Counts Led By Venture And Growth Investors

Notably, only Left Lane Capital out of all the companies listed above closed more agreements in the last six months than it did in the same period last year. The Brooklyn-based company's closing of a $1.4 billion second fund in April 2022, which provided a lot of dry powder to use, helped.

NEA and Google Ventures, two other companies on the list, have sped up the pace since the second half of 2022, but they are still declining year over year. Additionally, General Catalyst has been constant, averaging 11 lead rounds over the last two half-year periods.

Spendiest investors

For the most part, lead investors are also spending less than they used to on traditional venture rounds. However, a couple of unusual, jumbo-sized rounds in the first quarter did serve to boost the 2023 totals.

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