Venture funding to Asia-based startups will fall 31 percent sequentially in the April-June quarter of 2022. Mega-rounds to Asia-based companies will fall 25 percent sequentially in associated funding. Global funding raised from larger than $100 million deals will drop 18 percent QoQ in the second quarter of 2022. Global funding is on pace to continue to decline in April-June for the fintech, retail tech, and digital health spaces. Fintech sector will see a 28 percent drop in funding in April-June on quarter, while retail tech will see a 50 percent drop and digital health will see a 25% fall.
Quarterly count for new unicorns is expected to fall below 100 for the first time since 2020 in Apr-Jun as there will be only 62 unicorns getting minted in the quarter, which is a 46 percent drop sequentially. Minting of new unicorns in the US and Asia is likely to be hit hardest, report showed. The projected drop in new unicorns in the US and Asia is 43 percent and 67 percent respectively on quarter. Owing to public market volatility, many startups have put a pause on their exit plans, with total IPOs (initial public offering) projected to fall to 92 in Apr-Jun, marking a 9-month low and a 34 percent drop.