TechBoard's latest report "FUNDED 2022": Australian Startup Funding in Review
Last week Techboard released its latest report "FUNDED 2022. Australian Startup Funding in Review."
A major theme in the Report is the Startup funding slowdown that has been heavily covered in the press in Australia and elsewhere. The report looks into the data in that context and what Techboard finds is quite revealing. The data confirms what leading investors have been saying but at the same time indicates that things have not been as dire as many believe.The report is 47 pages long and contains 30 charts breaking down the data by funding type, deal size, number of deals, deal stage, category, gender, average deal sizes, investors, foreign investors and highlights leading deals across deal stages, megadeals, IPOs and acquisitions.From the report:"During 2022 Australian startup and tech companies collectively raised the second highest ever annual amount of private investment. The total amount raised in 2022 of $7.035b was 21% down from the highs of 2021 which was mostly driven by a drop in the number and scale of mega-deals, investments of $50m or more. The slowdown began post March 2022 with the demise of the 'Unicorn' Months of >$1b private investment. Although we have seen a tentative recovery from August 22, the year unfortunately closed on a flat note with a drop in funding again in December.2021 not only saw a massive increase in the total deal value from 2020 levels, a jump of 280% from $3.170b to $8.888b, but also a huge 135% jump in the number of reported deals. Despite the drop in total deal value in 2022, the number of investments recorded remained relatively stable only declining from 2021 levels by 5%.Consistent with what has been reported in the press around dropping valuations, 2022 saw big drops in average deal sizes. Series B rounds dropped from the March Quarter to the June Quarter (down 52%) and Series C rounds saw an initial plunge of 87% but then recovered to be down 46% at the close of the year. Series A rounds saw an almost 40% drop from Q1 to Q3 but recovered in Q4 to only be down 10% from Q1 levels. The average size of seed rounds remained largely static over the course of the year. It is difficult to see any meaningful trends in Series D rounds due to their infrequency.These shifts in average deal sizes in the large part returned to levels closer to those seen before the massive jump in funding in 2021, with Seed, Series A and Series B actually showing some growth from levels seen in 2020.""As has been the case for several years now, Fintech is the most highly funded category. If we consider the funding data of all companies which have had one of the five fintech categories assigned we see that $1.971b or 28% of all reported private funding went to Fintech companies and accounts for 19.67% of all reported deals. On this basis the Fintech sector however also took the biggest hit in private funding dropping 38.6% from the 2021 level of $3.208b." The Report can be accessed at https://techboard.com.au/funded-2022-australian-startup-funding-in-review/
The Fintech Funding ProjectDuring 2023 Techboard will be undertaking a project focussed on fintech funding. We will be aiming to identify and classify all privately owned Australian registered fintech companies and tracking their capital raises to build the most comprehensive picture of capital flows in the fintech ecosystem.This project will produce a valuable dataset available to Techboard's customer and partners and will provide multiple opportunities for exposure on reports and at events.Please get in touch if you are interested in knowing more or being involved."