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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)
