Fundraising has proven to be particularly challenging in Asia, where venture capital investments have fallen below those seen prior to COVID.
In Pakistan, startup funding experienced its worst quarter since 2020, with investments in this category falling to $5.2 million from April to June of 2023, according to data made available by Data Darbar.
This is down from $104.1 million and $23.1 million, respectively, in annual and quarterly funding for startup in Pakistan, respectively, by 95% and 77.5 percent, respectively. At the time, eight deals had been completed, a 65.2 percent YoY decline.
Fundraising has proven to be particularly challenging in Asia, where venture capital investments have fallen below those seen prior to COVID. The most recent quarter’s global data has not yet been made public, but according to Crunchbase, in May 2023, startup funding worldwide fell by 44% year over year to $22 billion.
In Q2 2023, the average deal size fell to $743,000 from $4.7 million in Q2 2022, the lowest level since Q1 2019. The median price was $500,000, which was the lowest since January through March of 2021. As a result, the size-to-median gap has decreased to $243,000, its lowest point.
Four seed rounds and three accelerator rounds made up the majority of early-stage movements. Technically speaking, only Abhi’s agreement with BlueEx qualifies as post-IPO.
The industry with the most sway was fintech. Of the declared investments, it accounted for $4 million, or fifty percent. Additionally, there was some variety thanks to OkayKer‘s introduction of the automobile after a while.
In the first half of 2023, there was $28.3 million in total funding for the field, which is a 60% drop from the same period in 2012. When compared to the $276.9 million raised in the first half of 2022, the decline was much more severe at 98 percent.
Additionally, the quantity of transactions has decreased to 16, from 26 from July to December and 46 from January to June of last year. These numbers represent the lowest levels by quantity since 2HCY20 and the joint lowest by number of deals since 2HCY19.