As we close 2023 and AI is a hot topic – we were wondering what AI might have to say about 2023 capital trends.
We decided to ask CoPilot Enterprise (which is powered by the GPT-4 algorithm) to give a summary of 2023 capital trends from 3 websites that write/post often with information on capital and its trends.
The results were less than impressive (this Newsletter survives!) and somewhat confusing especially when we asked the essentially the same question in different ways to see if we could “crack the code” and obtain answers that created a cohesive understanding of 2023 capital trends (read about what we learned from our experiment (AI IS NOT REPLACING HUMANKIND! 7 Lessons Learned the Hard Way) and each attempt was equally disappointing and equally disjointed.
If you want to compare notes or obtain more detail on the experiment, we conducted – contact us!
CoPilot Enterprise AI Generated Summary of 2023 Capital Trends – Decide for Yourself How Useful It Is…
I am interested in 2023 Capital trends – summarize capital trends from Pitchbook, Preqin and Crunchbase websites.
Sure, here are the 2023 capital trends from Pitchbook, Preqin, and Crunchbase:
- Later-stage companies had a rough run in Q1 with VC capital in short supply5.
- The sluggish exit market continues to tie up LP capital, making investors wary in an unforgiving tech market5.
- The pace of decline in total VC deal value appears to be slowing as both deal value and count level off5.
- VC-backed companies raised $37 billion in Q1 across an estimated 2,856 deals5.
- Late stage deals fell for the seventh straight quarter, and even angel and seed-stage deals declined sharply5.
- The number of late-stage VC deals over $50 million in later-stage companies is on track to reach less than half of 2022’s count5.
- The ratio of capital demand to supply for late-stage companies skyrocketed to record heights in Q1 20235.
- Private equity fundraising is expected to slow considerably12.
- The increasing appetite for secondaries strategies in private equity, the growth of private debt generally, relative stability for hedge funds, and continued constraints to fundraising by venture capital and real estate funds11.
- Venture funding in Q3 2023 reached $73 billion — up a bit quarter over quarter and down 15% from the $86 billion invested in Q3 20222.
- Seed and early-stage funding continued to decline year over year2.
- Late-stage funding was up by close to 10% year over year and 30% quarter over quarter2.
- Companies in strategic sectors — including semiconductors, AI, electric vehicles and sustainability — raised large fundings2.
Contact us if you or one of your clients is thinking about or has a capital opportunity. We advise to successful outcomes.