Venture Capital investors pulled back their activity in the Portland metro with a dramatic decline in investment last year, according to the latest data from the research firm PitchBook.
The amount of money invested in the fourth quarter of 2022 plummeted compared to the same quarter in 2021, with just $67.5 million invested in the quarter compared to $385.4 million invested in Q4 2021.
For the entire year, the amount invested in the Portland metro was down 42% compared to the historic amount invested in 2021, according to the 2022 Venture Monitor report compiled by PitchBook and the National Venture Capital Association.
Sequentially, the amount invested in the metro between Q3 and Q4 of 2022 was down 60%, likely reflecting the industrywide slowdown of venture investing that has been making headlines since last summer.
In the fourth quarter there were 28 deals completed in the Portland area, according to the report. For the year, there were 135 deals in the metro for 2022, compared to 149 total deals in 2021.
The Portland metro data includes parts of Southwest Washington.
For the state of Oregon, a total of $970.4 million was invested last year, down 45% compared to 2021. In the fourth quarter of 2022 just $35 million was invested in the state. That’s a massive slid from the $696 million that was invested in the fourth quarter of 2021.
The dramatic decline in investor appetite has been the topic of discussion in startup circles. We checked in with five local investors on their advice for founders who are entering 2023 in this new funding reality.
Nationwide, $238.3 billion was invested across 15,852 deals, according to the report. That is down from $344.7 billion invested in 2021 across 18,521 deals. The report authors noted that angel and seed stage activity nationwide “remained relatively resilient” in 2022 as a huge slowdown in exits and macro economic uncertainty dragged down other areas.
“Although earlier stage deal activity and fundraising totals show remarkable resiliency in 2022, the overall slowdown in annual VC activity reflects the sizable headwinds presented by ongoing macroeconomic factors, rising interest rates and frozen avenues for startup liquidity,” said John Gabbert, CEO of PitchBook in a written statement. “Unable to justify the sky-high valuations seen in 2021 and retreating from the ‘growth-at-all-costs’ mindset seen in recent years, many investors are pulling back until the ecosystem returns to a more palatable normal.”
Here’s the largest rounds in the Portland metro for the fourth quarter:
- Vancouver children’s media company Slumberkins raised $19 million.
- Vancouver veterinary healthcare system Galaxy Vets raised $13 million.
- Portland health care focused fintech MedZero raised $9 million.
- Portland life sciences software maker Kivo raised $4 million.
