October’s VC-Backed Funding Rounds Value Was Lowest of the Year

The total value of the venture capital (VC)-backed funding rounds completed around the world in October was the lowest of any month so far this year.

There were 1,235 deals adding up to $21.35 billion done in October, S&P Global Market Intelligence said Thursday (Nov. 10) in a press release.

This continues a trend that has been seen throughout 2022. Both the number of deals and the total value of the deals have been lower each month compared to the month before, with only two exceptions: from February to March and from May to June, according to the report.

Comparing October to the same month in 2021, the volume of deals was down 40% and the value of the deals was down 60%, the report said.

Year to date, as of Oct. 31, there have been 17,843 VC-backed funding rounds totaling about $359.60 billion announced globally, per the report.

“Falling valuations of technology companies and rising interest rates did not stop the technology, media and telecommunications sector from remaining the most attractive target of venture capital investors globally,” the release said. “The sector pulled in 43% of the total capital raised in October.”

Other sectors that accounted for a double-digit share of the capital raised in October include healthcare at about 18%, financials at 11% and industrials at 10%, according to the press release.

In related news, the PYMNTS FinTech IPO Index saw this group inch up 2.2% over the past five trading days.

As PYMNTS reported Friday, the FinTech IPO group retraced some losses seen during the earnings season with this uptick, but only by a bit. Year to date, the Index stands 45% lower.

Looking ahead, the group is in for a rocky time of it, as commentary from earnings season reported that consumers are growing cautious, FinTech platforms are seeing pressure on loan volumes and credit metrics bear watching.