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The Uptake | Has venture capital had its day?

Written by The Uptake Published on   1 min read

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Venture funding takes a hit after a historic boom in venture capital investment in 2021.

Hi, it’s Edmund.

Over the past few decades, venture capitalists have played an important role in the global economy by financing high-growth companies such as Amazon, Apple, Facebook, and Google.

By 2021, venture investment had shattered all records as investors pumped in USD 681 billion to startups globally. But in 2022, the venture capital world looked like it was in the grip of a crash. Global venture funding in 2022 hit USD 445 billion, which marked a 35% decline year on year from the amount invested in 2021, according to Crunchbase.

According to Jeremy Tan, co-founder of Tin Men Capital, a Singapore-based VC that focuses on B2B tech startups in Southeast Asia, the fall in venture funding marked a reality check following years of dizzying growth in the industry.

To read more about Tan’s thoughts on how venture capital investment will evolve in the year ahead, check out our Q&A here.

In The Bullet this week

Are you constantly upgrading to the latest tech products? The staggering amount of tech sold globally each year may have you questioning if it’s truly necessary. With 1.747 billion mobile phones sold in 2021 alone, it’s clear that the tech industry is driven by consumer demand. But are these purchases warranted?

Read Degen’s column here.

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