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State of Financial Growth of Startups & their Funding Analysis 2023
Detailed statistical report on startups investments and funding trends in 2023
This report will project key highlights of recent market trends of startup funds in the form of statistical presentation and charts. A detailed analysis and findings will be covered in this report highlighting the state of startup funding across growth stage in 2023.
About Startup Funding Economy
A startup is defined as a young company that is trying to make an impact with a unique business idea. These businesses typically aim to take over their respective markets.
Some of the most successful and world-changing companies started out as small startups. Apple, Tesla, Meta, Snapchat etc. are just a few examples of influential organizations who took a risk and created something new.
Startups are highly valued for several reasons, but one of the most notable is their unique business ideas and concepts. China and the USA have the highest concentration on startups, but Latin America is quickly becoming a hotbed for innovation. Concept of startups in South Korea and India are also growing rapidly.
Key Highlights and Trends related to State of Startup funding
Our new report provides an in-depth look at the growth state of startup funding across the world and the trends that will shape it in the coming years. We polled 900 market researchers, business analysts and industry professionals and compiled data from thousands of sources to reach to the conclusion with accurate findings and results. Here are some of the key findings from our report:
State of startup funding across growth stage in 2023
Indian startups had a great year in 2021, raising $47 billion across 1,500+ deals from investors. However, several factors such as macro-economic environments, market volatilities, changes in government schemes, etc. led to a crash in funding in 2022, with startups raising only $35 billion. Our data and findings below highlight that 2023 is shaping up to be another tough year.
If you take a detailed look at Infobrandz’s analysis, it is predicted that in 2023, there could be 375 startup funding deals at growth-level across the globe. This is only a 5% increase from the 394 deals closed in 2022. Additionally, the stage of startup funding could be to raise $7.4 billion in 2023, which is impacted by a 3.9% shortfall in comparison to 2022.
In other further analysis, market researchers and industry experts highlighted that the current state of startup funding is getting impacted by the international regulatory environment, and other macroeconomic elements.
“Despite the challenges faced in 2022, there was one silver lining: Foreign Portfolio investments (FPI) in the capital markets was high in 2022. This gives us hope that funding activities will return to its original levels once macros have stabilized globally.” – 47% out of 900 market analysts responded.
Key Highlights of Startup Economy:
State of Funding (2014 – 2022)
Our further findings state that the total state of funding, in 2022, reached $25BN which was $12 Bn in 2020. The year 2021, unobjectionably, was a fantastic year for startup fundraising which crashed down to $25BN in 2022 from $42BN of funding raised in 2021. The total deals counted in 2022 were 354, whereas the total deals from 2014 to 2022 considered were 2.4K.
However, if we look at the fundraising data from 2020 to 2022, we see a significant increase in startup funding in 2022. Startup funding at growth-stage leaped 273% in 2022, compared to the funds raised to $2 Bn in 2020. This is likely because more startups are reaching the growth stage and require more funding to scale.
In 2022, the number of average deals for growth funding rose by 9% compared to the previous year. We got this positive response from 79% of market experts and researchers, even though the number of deals was lower in 2022 than in 2021.
GROWTH STAGE FUNDING INCREASE MORE
THAN 3X IN 2022 COPARED TO 2020
Capital Funding Trends 2023
Staying ahead of the financing trends in the startup world is essential to the success of your business. For a while now, many businesses have been leaning towards getting funding from venture capitalists. However, a new trend of getting funding from more democratic and conscious sources is taking over as inflation continues to be a problem.
Our findings found that inflation hit its highest point at 9.1% in 2022. Furthermore, new unicorns saw a 43% decline in interest rates in Q2 of 2022. However, 45% of market researchers predicted that crowdfunding would reach $1.06 billion by 2023.
Inflation reached
9.1%
Crowd funding to reach
$1.06B in 2023
43% drop
in new unicorns
Summing Up: Infobrandz’s Statistics Report on Startup Funding 2023
The environment for startups in 2022 has been shaped by macroeconomic trends, though there is still a lot of growth potential, especially for startups that focus on people and sustainability. These startups are likely to be the most innovative and have the best chance of success in the current changing climate.
As we entered 2023, many of the scenarios and recent trends you might see this year are likely to continue. For startups, it is necessary to tighten the belt and start focusing on innovation and creativity for fundraising.
