Exit prospects improved in Q3, thanks to the three notable IPOs of Arm, Instacart, and Klaviyo.Early-stage startups raked in $11.5B, while seed-stage startups bagged $3.1B.Meanwhile, early-stage and seed-stage funding declined 38% YoY and 27% YoY, respectively.Battery tech startups Redwood Materials and Ascend Elements raised a $1B Series D round and $460M funding, respectively.The uptick was primarily due to the higher average deal sizes and robust funding for cleantech and AI sectors.Late-stage VC funding saw an uptick of 8% from the previous quarter, ending the quarter with $16.8B.The funding almost matched the previous quarter's tally, declining just 3% QoQ. North American startups bagged $31.4B in VC funding in Q3 2023, per Crunchbase. VCs invested $4.5B in semiconductor startups in Q3, with 96% of the investment going to China-based companies. What happened: AI startups raised $10B in Q3, thanks to Anthropic's $1.3B round from Amazon and Databricks' $500M funding round led by T. Meanwhile, late-stage funding was up 10% YoY and 30% QoQ due to investors' enthusiasm for the semiconductor, AI, EV, and sustainability sectors, all of which were able to raise large financings. Seed-stage startups raked in $6.6B, down 27% YoY. Relevance: Early-stage funding witnessed the steepest decline among all other stages, dropping 38% You and $16% QoQ to $23.4B in Q3. Per Crunchbase, the current venture funding slump has now dragged on for five to six quarters. Despite the uptick, funding was still 15% lower than the same period last year, when startups raked in $86B. What the numbers say: The quarterly total for Q3 was 7% higher than the preceding quarter. Venture capitalists invested $73B in global startups in Q3 2023, per Crunchbase. Q: What preferential terms or conditions should founders avoid when raising down rounds at lower valuations? Join the conversation here. Latin American VC funding has slumped 75% YoY to $1.7B in the first half of 2023.Per Latin America's private capital investment nonprofit Lavca, the funding retrenchment in Latin America has been more severe than in the rest of the world.To date, Kaszeh has raised nine funds worth $3B.Additionally, it raised a $540M early-stage fund and a $435M late-stage fund earlier this year.The firm has a third of the capital from its 2021 fund available for deployment.Some of those will get capital, maybe at a totally different valuation than what they raised last time, and some might not make it." Co-founder Hernan Kazah said, "Companies are still struggling trying to find the right model, the right unit economics, and the right balance between burn and growth.Kaszek's investment pace has increased since 2022, when it invested in just two startups. ![]() The firm has already increased its investment pace this year, investing in seven startups already, including a $13M investment in Colombian fintech Cobre. ![]() The firm has nearly $1B in dry powder available for deployment. ![]() Kaszek Ventures is waiting for startups to start accepting lower valuations so that it can scoop up stakes in Latin American startups.
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