The $100M venture round is going extinct

Startups hoping to lift a nine-figure round sooner or later had greatest mood their ambition; venture funding occasions price $100 million or extra are going extinct — rapidly.

A number of years again, nine-figure venture funding occasions have been widespread. A lot so that in my Crunchbase Information days, we started to call them “supergiant” rounds to keep away from having to spell out their measurement. Hell, we really ran regular reports of rounds price a number of hundred million or extra till sheer quantity made it impractical. Good instances.

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Now greater than a yr previous the height of the 2021 venture increase, it’s clear that these days are behind us. And whereas it took for much longer to deflate the $100 million round bubble than I anticipated, if developments proceed, nine-figure venture funding occasions will turn out to be, as soon as once more, uncommon sufficient to warrant our consideration.

The $100 million round’s fall from prominence is an Icarian saga. PitchBook data collected by ClassyBuzz this morning tells a easy story: From a secure base of round 75 such funding occasions per quarter by means of 2019 and far of 2020, the tempo at which venture buyers pumped capital into startups in nine-figure chunks exploded by means of 2021, solely to come back crashing all the way down to prior ranges in roughly the identical period of time because it took to achieve its peak.

exchange banner sq red plusThe knowledge is stark: From 75 $100 million or better funding occasions in Q1 2019 to 426 in This autumn 2021, the tempo of nine-figure venture offers has retreated to simply 57 to this point within the first quarter of 2023.

Naturally, we’ll see the present quarterly tally tick increased over the approaching weeks, nevertheless it’s definitely going to shut out Q1 below the 157 that we noticed in This autumn 2022.

Right here’s the chart of mega-round deal quantity from the beginning of 2019 by means of at present:

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