Industry Analysis - September 11, 2023

VC vs CF: Who invests more in the summertime?


The summer months tend to see a slowdown in private market funding both in Venture Capital and Equity Crowdfunding
  • In Q3 of 2021, we see that VC funding drops by about $62 million after a strong start to the year. In 2022, VC funding continuously drops throughout the year, dropping to its lowest by Q3. And this year, we see that funding in Q3 has also dropped for VC.
  • We see the same trend in the CF market (other than 2021). In 2022, funding drops nearly $80 million from Q2 to Q3. And in Q3 of this year, we also see lower funding from Q2.
  • The summer months are notoriously slow for investment firms, with managers known for taking long vacations rather than making deals happen.
  • But equity crowdfunding also shows a slowdown in the summer months. Do online investors feel the effects of a summer swoon as well? TBD, we’ll check back in the Fall.

About: Teddy Lyons

Teddy comes to KingsCrowd with a background in venture capital and investment banking. He worked at Deutsche Bank as an Investment Banking Analyst in the Technology, Media, and Telecommunications group. Prior to that, he served as an Associate at Alchemi Capital, a venture capital firm in Boston that invests in early-stage technology companies. Teddy holds a degree in Economics and Psychology from Wesleyan University, where he was captain of the varsity soccer team. He also holds a M.S. in Finance from Boston College.

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