Venture capital investment in South Florida slowed in the first three months of this year after a record-setting 2021.
Businesses in Miami-Dade, Broward and Palm Beach counties collectively attracted about $1.2 billion in venture capital dollars over 84 deals in the first quarter of 2022, according to the Q1 2022 Pitchbook-NVCA Venture Monitor report. That's a little more than half of the $2 billion raised by local companies during the fourth quarter of 2021.
South Florida was far from the only region to see deal values decline. U.S. firms secured a total of $70.7 billion between January and March 31, down from $95.4 million in late 2021.
But that doesn't mean it was a disappointing period for capital raises. Although it represents a slowdown from the fourth quarter, U.S. companies still attracted more than double the $32.7 billion raised during the first quarter of 2021.
Nationally, venture capital dealmaking adjusted to "a new normal" after an unprecedented year for fundraising in 2021, Pitchbook reports. Deal sizes and valuations fell early this year and exits nearly halted.
“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,” said John Gabbert, founder and CEO of PitchBook.
A similar trend was reported in another analysis released this week from CB Insights, which said the first quarter of 2022 marked a five-year quarter low for U.S. venture funding. CB Insights reports South Florida companies raised $1.06 billion across 81 deals during the first three months of the year, down 53% from the quarter before.
The top deals closed in South Florida during the first quarter were:
Yuga Labs: The Miami-based company raised $450 million at a $4 billion valuation in a seed round that closed in March. The Web3 platform, known for the creation of the Bored Ape Yacht Club NFT collection, plans to use the funding to grow its team. Nationally, the Yuga Labs raise was the No. 1 seed and angel-level deal of the quarter, according to CB Insights.
ThriveDX: The digital skills bootcamp (previously known as HackerU) secured $100 million in a deal that closed in January. Coral Gables-based ThriveDx raised an additional $75 million in February from NightDragon, a venture capital firm headquartered in San Francisco.
Finally: The Miami fintech raised $95 million in a series A round that closed in March. Finally said it planned to use the funds to hire additional employees and launch a corporate charge card for small businesses.
Novo: The digital bank raised $90 billion in a series B round that pushed its valuation to $700 million. Novo reports it has processed more than $5 billion in transactions since its founding in 2016, including $4 billion in 2021 alone.
Metaversal: The NFT-focused venture studio secured $50 million in a series A round that closed in January. The Miami company said it plans to add more digital collectibles to its portfolio and invest in metaverse startups with the new capital.
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