Startups fundraising in May 2022
Right now, startups are facing a contraction in valuation — not revenue, which was the case in the early COVID days. Public-market comps are down 60% or more in some sectors, and they tend to be the leading indicator of how VCs are similarly going to value startups down the road. Downside risks that can temper growth expectations and PE/ VC investment activity include rising inflation, oil prices, dollar appreciation. Sequoia believes today’s monetary and fiscal policy tools have made capital costlier and will force cuts among its portfolio and measures for cash conservation. The focus should be on extending the runway and fully examining the business to see where costs are out of control.
Here is May 2022 fundraising summary: