Renewed overseas investor interest in Japan may help the country’s overlooked startups defy a global venture capital slump, according to early-stage investor James Riney.
While traditional venture capital activity slows, SoftBank can’t help but keep investing, and there are all new rules around venture debt in the post-Silicon Valley Bank world.
On the back of pretty strong earnings reports and valuations, public cybersecurity companies are outperforming the broader technology segment. Yet, funding for cybersecurity startups has flatlined.
<p>The fund aims to offer liquidity options to tech startups, including some of SoftBank’s own portfolios, amid a slow venture funding environment and a weak market for initial public offering (IPO) exits.</p>
SoftBank has launched a second fund under its Opportunity Growth Fund to raise and invest $150 million in Black and Latino-led startups. Last year, the fund briefly became an "evergreen fund," meaning it had an open-ended fund structure that let it re-invest capital without constraints and invest across stages.
In 2021 alone the amount of money flowing to startups doubled to nearly $640B. Then soaring inflation and surging interest rates brought the market crashing down. Last year the investments made in startups worldwide sank by a third.
For the last two years, climate tech was on a tear. To be fair, so were a lot of other sectors. But when a slowdown hit tech investing in the middle of last year, climate tech startups bucked the trend and kept racking up the deals.
Venture capital funding to startups plummeted by more than half in the first quarter from the year before, a stark indication of the toll that a slowdown in the tech industry has taken on young companies.
When the Japanese investment conglomerate announced it had committed another $3 billion to startups there, it was only further validation that Latin America was home to a formidable startup system.
European governments are committing large amounts of capital to boost regional deep-tech startups, but investors say a lack of late-stage capital and risk appetite are preventing more domestic deep-tech leaders.