The market Headwinds and doubts about world suffer global venture Capital Investments (VC). Production crisis and logistics crisis caused by the coronavirus pandemic, Russia invasion of Ukraine, inflation, rising Interest rates and escalation of Tensions between the United States and China have caused clouds global Economic outlook.
And the venture Venture capital firms and their investments are among the most vulnerable when it comes to impact of Such doubts. For example, SoftBank Vision Fund, which flipped world of venture capital with splash bets on dozens of Notable startups this week announced He. She posted A massive loss of $21.68 billion in April and June quarterAs the value of its investments has evaporated in The market defeat. This is the secondBiggest quarterly loss for Vision box.
This contributed to the loss of 3.16 trillion yen ($24 billion) net Loss for Japanese technology Giant SoftBank Group Corp. It was a reversal of its 762 billion yen profit in The same quarter a year earlier. This is it record Quarterly loss for company. To some extent, this means that the fund lost 10 million dollars every hour for Three consecutive months or over 3000 dollars per item second.
This and other similar examples highlight on the situation of The global venture capital market.
as such for Turkey venture The ecosystem continues to grow, led by particularly participating startups in gaming And the financial technologies. One of Turkish leading information and communication technologies Of the companies, Türk Telekom leads the increasing participation by companies in venture capital investments. her company venture And the capital firm, TT Ventures, continues to boost its investments in particular in Health and education.
Venture capital investments go down
shed light on The latest trends in Industry, a report by KMPG showed venture Global capital investment fell to six-quarter a little in The second period of three months of This year is in the midst of the ongoing crisis in Ukraine, high inflation and rising interest rates.
Looking at the number of Geopolitical and macroeconomic uncertainty affecting investment capital market Globally, Venture Pulse Q2’22 . report suggests venture Capital investments can remain A little soft in the third quarter.
The quarterly report highlights key trends, challenges and opportunities facing The venture capital market globally and in key areas around world.
the report says venture investments for her declined Amid ongoing geopolitical uncertainty, supply chain issues, and factors such as rising Inflation and interest rates.
worldwide venture Capital investments decreased significantly from $ 165.3 billion through 11,468 deals in The first quarter To $120.2 billion through 8,420 deals in The report showed the period from April to June.
No number of deals and total amount of Venture capital investment decreased in Americas, Europe and Asia during second quarter.
venture capital investment in The United States showed the most flexibility, with the help of three deals of over $1 billion: $2 billion increase by Epic Games, $1.7 billion increase by SpaceX, and $1.5 billion by GoPuff.
Biggest increases outside of The US included a $1.15 billion deal by the German Commerce Republic, an $805 million increase from India-based Daily Hunt, and a $714 million increase by Kitopi in United Arab Emirates and raised $650 million from Swiss company Climeworks.
“With geopolitical uncertainty and decline in Size and number of Transactions of The global VC market technology Gökhan Kaçmaz, a consulting partner for KPMG Turkey M&A, said the companies are going through a difficult period.
“The decline in Ratings and poor performance of technology comp in Markets slowed down in Subscription (initial public progress) activities in The second quarter. We note that investors direct portfolio companies to maintain cash. There is a similar look for Third quarter of 2022, with profitability critical for startup companies”.
While there is still reasonable amount of dry powder in VC market globally, in particular in United States and the Americas more Large-scale, Europe, investors are expected to become more caution with focus their investment on Companies within their portfolios, their companies with Strong paths to profitability and businesses in Sectors are placed in highlight through current crisis in Ukraine, suggests a KPMG report.
Venture capital investors press portfolio companies to focus on keep cash ride out storm. number of flying high private Companies saw their ratings drop in The second quarter Compared to six months ago – decline echoing the experience of Much publicly circulated tech companies around world.
This leads many global Venture capital companies to direct their portfolio companies to tighten their portfolios, be more selective with employ them plansand rationalizing their workforce in for the ride out The current doubts. Many venture capital investors and startups view cash Maintain it is necessary to avoid down-rounds and postpone it new Finance rounds until the market improves turbulence.
supply chain and automation
While investor interest in Consumer-oriented business waned during second quarterinterest remained relatively high in number of other sectors. Supply chain and logistics continued attract big amount of Attention as companies looked for Ways to address a continuous supply chain challenges.
pig support off concentration on Supply Chain Management, Venture Capital Investors also Show continued interest in automated vehicles – From long distance transportation to development of automated vehicles for use in Warehouses on Farms and in other industrial or industrial sites or establishments. Drone technologies You have also stay firmly on radar of Venture capital investors.
The skyrocketing energy prices in many areas of The world And the growing fears over Help rely on energy drive Investor’s interest in Alternative energy options, energy storage and even mobility higher in The period from April to June.
while electric vehicles Batteries continued to be a major focus for investment during quarterRegions like hydrogen based technologies also Get extra attention. Over the next Low interest quarters in Energy sources and other solutions also it is expected that pick up – Like the development of smallAt the level of nuclear power plants in Europe.
unicorn case in Risk
there was 97 new Unicorns – Startups with evaluation of over Billion Dollars – Born Global in The second period of three months of This year with Representing fintech companies more of a third.
Americas accounted for for over half of The world’s new unicorns with The United States hosts all but three countries in Latin America (UNICO and Starbank in Brazil and Kushki in Ecuador). Europe experienced 18 new Unicorns come from eight different countries (United Kingdom, Germany, Finland, Sweden, Norway, the Netherlands, Switzerland and Israel), reflecting the staggering geographical diversity of European capital market.
Asia also It experienced a large geographical spread of new unicorns with 17 coming from seven jurisdictions. while unicorn births remained steady during quarterThere are concerns about that down rounds could cause unicorns with 1 billion dollars of valuations to inspect their status. summit player in Turkish fast- The growth of the e-commerce sector that Hepsiburada is losing its place as an example.
This is why companies valued at exactly $1 billion can consider making major concessions to investors to retain their rhino status.
Looking at the number of Geopolitical and macroeconomic uncertainty affecting investment capital market Globally, KPMG reports that downward pressure is likely to continue on Ratings, which can lead to decreasing levels of Investing or taking advantage of alternative sources of financing.
He. She also says venture capital deals in Many areas will likely take longer complete Where investors enhance due diligence of deals.
Against this background, it is said that fintech is most likely remain strong area of investment in Many regions around the world in In addition to supply chain, logistics, cyber security and alternative energy.
Given rising Inflation and interest rates, consumer-focused businesses are likely to lose some of their luster with venture capital investors in favor of The report said that B2B solutions and investments.