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National and regional VC numbers show Seattle is doing better than the rest of the country…so far – GeekWire

National venture capital investment trends, according to a preliminary report from PitchBook-NVCA Venture Monitor Thursday.

Venture capital investment in the United States fell more than 23% to $62 billion in the second quarter, from $82 billion in the first quarter, according to an overview of the PitchBook-NVCA Venture Monitor report, released Thursday morning.

The numbers show the impact of the economic downturn on startups across the country. As The New York Times reported, it’s the biggest nationwide decline since 2019, ending a three-year boom in startup investment.

PitchBook and NVCA won’t release their full report until next week, but numbers tracked by GeekWire indicate that the startup economy in Seattle and the Pacific Northwest is doing at least slightly better than the national averages in some respects. – and totally bucks the trend when it comes to one number in particular.

GeekWire tracks tech funding deals in Washington, Oregon, Idaho, and British Columbia as part of its Pacific Northwest startup reports.

Our tally shows that the value of investments in Seattle and the Pacific Northwest Pink 18% between the first and second quarters of this year, to around $2.2 billion. This compares to 23% sequential decline between the first and second quarters across the country, which served as the basis for the New York Times report.

As we reported last week, the second quarter sequential increase in the Pacific Northwest came from a handful of large deals, five of which exceeded $100 million.

  1. Group14 Technologies, battery technology, $400 million.
  2. Convoy, trucking market, $260 million.
  3. Zap Energy, fusion energy, $160 million.
  4. Agility Robotics, warehouse robots, $150 million.
  5. Echodyne, high-tech radar, 135 million dollars.

These top 5 deals in the second quarter in the Pacific Northwest had a total value of more than $1.1 billion, significantly exceeding the total value of $706 million for the top 5 deals in the first quarter. This made it possible to overcome a drop in the total number of transactions: 63 in the second quarter compared to 75 in the first.

In contrast, nationwide, PitchBook reported, “The oversized deals that have become a theme of 2021 are not getting done as investors take a more cautious approach to the market’s biggest deals.”

The comparison of the first and second quarters is interesting because it gives an idea of ​​the trend in real time, but since investing is seasonal, of course, it is better to compare the figures to the same period of the previous year :

  • The national numbers are down about 17% from $75 billion in the second quarter of 2021 to $62 billion in the second quarter of 2022, according to current and past reports from PitchBook-NVCA.
  • Numbers in Seattle and the Pacific Northwest also fell during this period, but not as much, falling 14% from $2.5 billion in the second quarter of 2021 to $2.15 billion in second quarter of 2022.

OK, so a 3 point difference is definitely marginal. It’s not comforting for startup executives to look at their burn rates, cash flow, and headcount, and wonder when they can ramp up their next round.

Overall, the venture capital market is down many other measures in Seattle and across the country. Maybe the sequential quarterly increase in total dollars invested in Seattle and the Pacific Northwest is a short-lived silver lining, or maybe it’s a silver lining. Anyway, good luck there.