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2022 Endeavor Catalyst Annual Report

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4 Welcome to our 2022 Endeavor Catalyst Annual Report! This year proved to be one of reckoning for the venture capital industry, and cemented 2021 as an outlier rather than the new normal. Though we saw investment pace in the private markets slow in the face of macro volatility, rising interest rates, and a declining stock market, 2022 proved to be a strong year for global venture capital historically and for Endeavor Catalyst. According to Crunchbase data, global venture funding reached $445B in 2022 — a 35% YoY decline from the $681B invested in 2021. However, venture funding in 2022 was still $100B higher than the $342B invested in 2020. Interestingly enough, we deployed the most capital in Endeavor Catalyst's history in 2022 - $72.4M across 59 companies. This was 4% more capital than in 2021 and 159% more capital than in 2020. Notably, we invested in 14% fewer companies compared to 2021, supporting the notion that the very best companies can still get funded in bad times. Though we did our part, there is still a critical imbalance between capital being demanded and capital being supplied, and this is true despite ample "dry powder" in the ecosystem. The scaling back of late-stage funding was deeply felt, and continues to impact startups as they prepare to raise Series B and later rounds in 2023; round sizes and valuations have come down and investors are being noticeably more cautious. For the best companies – clear market leaders with strong business fundamentals – capital will still be available, potentially at the same (or better) terms as last year. For other companies, capital will only be available at a discount to last year's multiples despite growth in metrics or, in some cases, not at all. Endeavor Catalyst has built a diversified portfolio across regions and industries, which aims to be durable through venture capital cycles and global macroeconomic instability. Our global diversification is our unique advantage, and we're seeing this now more than ever. Some highlights below: • USA: The country's full-year deal value totaled $238.3B, well ahead of the 2020 number, with activity weighted towards the first half of the year. Notably, 769 venture funds raised a combined $162.6B in 2022, setting an annual Opening Letter: A Look Into the Global Venture Capital Ecosystem Sophia Alj and Ismael Belkhayat, Chari (Morocco)

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