Venture capital activity is falling back to Earth.
According to the PitchBook-NVCA Venture Monitor first quarter report for 2022, the Seattle area had 118 total venture capital deals totaling $1.6 billion during the first quarter. In 2021, there were 494 deals in the Seattle area for a total of $9.2 billion.
“Economic and geopolitical headwinds in the first quarter brought about change in the U.S. venture ecosystem after the constant upward trajectory of prior years,” John Gabbert, founder and CEO of PitchBook, said in a news release.
The report, which is jointly produced by Seattle-based financial data firm PitchBook and the National Venture Capital Association, also found venture capital numbers across the country leveled off a bit during the first quarter.
Across the country, there were 4,822 deals totaling $70.7 billion during the first quarter. That deal value isn't on pace to match 2021, a recording-shattering year for venture capital activity, when there were 17,105 deals totaling $342.2 billion.
Mega deals, or venture capital deals of $100 million or more, also tapered off slightly during the first quarter of 2022. There were 185 mega deals totaling $36.6 billion, compared with 845 such deals totaling $196.7 billion in all of last year.
“The start of 2022 has shown signs of an expected adjustment for the VC industry on the heels of a two-year period where VC-backed startups served as the backbone of the U.S. economy during the global pandemic,” NVCA president and CEO Bobby Franklin said in a news release. “Where the slowdown will taper off remains to be seen, but VC investors are in a strong position with ample dry powder amassed in recent years and Q1 to continue fueling startups.”
Multiple Seattle-area startups have landed massive funding rounds during the first quarter. Seattle-based sales software company Highspot, for example, raised $248 million in January, while Bellevue-based recruiting startup SeekOut raised $115 million. Seattle-based e-commerce startup Fabric, meanwhile, raised $140 million in February.
