State of CVC Q2’23 Report

State ofCVC Global | Q2 2023 Global data and analysis on CVC-backed dealsand funding to private market companies Guess Less.Win More. CB Insights helps the world’s leadingcompanies make smarter technologydecisions with data, not opinion. Our Technology Insights Platform providescompanies with comprehensive data, expertinsights, and work management tools thatenable them to discover, understand, andmake technology decisions. ▮▮▮▮IIISign up for a free trial API, Data Feeds,and Integrations Use CB Insights data, everywhere. Enrich your CRMto prioritize top prospects,partners, and investments wherever youmanage deals. Build better modelsto rank your targetsbased on how they're projected to perform. Collaborate smarter, fasterwith real-timealerts and share information withapplications you're already working in. Make your brand moresearchable. Findable.Buyable. Partnerable.Investable. Complete a free Analyst Briefing Survey*and get in front of enterprise tech buyers,M&A teams, and investors. *Survey takers have increased their lead generation 3x on average. ▮▮▮▮▮IIIApply here When you rely solely on publicly available sources,you come up short because they don’t tell the wholestory. For that, you have todig deeper, and we turn toCB Insights because they do the digging for us. Dr. Andreas NemethCEO, UNIQA Ventures View success story→ Dig Deeper. CB Insights clients can find and trackcompanies using our analyst-curatedExpert Collections. FintechPaymentsE-CommerceStore TechSupply Chain &Logistics Tech InsurtechDigital HealthMental Health TechOncology Tech Women’s Health &Wellness Tech TLDRState of CVC Your rundown onCVC in Q2’23 $21.8M $7.3B $14.6B 37% -31% Global CVC-backedfunding stabilizes inQ2’23. CVC-backed mega-round deal sharestays flat QoQ. QoQ drop in CVC-backed retail techfunding. CVC-backedfunding in the US.Down 11% QoQ. Average CVC-backed deal size.Lowest since 2017. CVC-backed $100M+mega-round fundingincreased for the secondconsecutive quarter, to$5.4B in Q2’23. 37% ofCVC-backed funding wentto mega-round deals inQ2’23 for the secondconsecutive quarter. CVC-backed fundingincreased 4% QoQ, from$14.0B to $14.6B. Beforethis, funding had steadilydecreased since Q3’21.Meanwhile, the broaderventure market sawfunding fall 13% QoQ. CVC-backed retail techfunding dipped below $1Bfor the first time sinceQ4’17, falling from $1.3B inQ1’23 to $0.9B in Q2’23.Overall venture funding toretail tech fell 24% QoQ,from $5.4B to $4.1B. Average CVC-backed dealsize is just $21.8M in 2023YTD, lower than any yearsince 2017. US-based companiesraised $7.3B in CVC-backed funding in Q2’23,half of the global total.Even so, Q2’23 was thelowest quarter for CVC-backed funding to UScompanies since Q3’19. This is due in part to a 44%drop in median late-stagedeal size in 2023 so far,from $87M in 2022 to$49.1M in 2023 YTD. Evenso, 2023 has seen nochange in late-stage dealshare (5% in both 2022and 2023 YTD). Despite the drop, retailtech has a median CVC-backed deal size of $9.3Min 2023 YTD — higher thanfintech or digital health. CVC-backed deals tickedup for the first time sinceQ1’22, from 894 in Q1’23 to906 in Q2’23. In Q2’23, CVC-backedfunding increased QoQ tocompanies in Asia ($3.3B)and Europe ($2.8B). 1Komma5, a green energystartup, raised the largestCVC-backed deal in Q2’23($468M). See the data→ See the data→ See the data→ See the data→ See the data→ ContentsState of CVC Singapore97Japan101Europe105United Kingdom110Germany114France118LatAm & Caribbean122 Global Trends9Investment Trends10 Sector Spotlights32 Fintech33Retail Tech41Digital Health49 Geographic Trends 57 US58Silicon Valley63New York67Boston71Canada75Asia80China85India89Israel93 Global Trends Investment Trends State of CVC| Global Trends | Investment Trends Halfway through 2023, CVC-backed funding comes in at less than a third ofFY 2022’s total State of CVC| Global Trends | Investment Trends CVC-backed funding ticks up for the first quarter since Q3’21 State of CVC| Global Trends | Investment Trends State of CVC| Global Trends | Investment Trends CVC deal shares remain largely flat QoQ among regions State of CVC| Global Trends | Investment Trends YTD average global deal size falls to $21.8M, the lowest since 2016 State of CVC| Global Trends | Investment Trends Median deal size falls across most global regions but bumps up in Canada State of CVC| Global Trends | Investment Trends Mega-round funding sees its second consecutive QoQ increase State of CVC| Global Trends | Investment Trends State of CVC| Global Trends | Investment Trends The US has 19 CVC-backed mega-round deals, the fewest since Q4’19 State of CVC| Global Trends | Investment Trends CVC-backed mega-round funding share stays flat QoQ Global: Top equity deals in Q2’23 State of CVC| Global Trends | Investment Trends Early-stage deal share continues to dominate in 2023 YTD State of CVC| Global Trends | Investment Trends Asia leads early-st