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SPEEDA Edge Funding Analysis: Mid-year 2022

VC funding* across 90+ SPEEDA Edge industry hubs** amounted to USD 72 billion in 1H 2022 over 1,300+ rounds. Financial services accounted for the most, raising close to USD 15 billion led by FinTech Infrastructure and Neobanks. Work, Transportation & Logistics, Pharma & Life Sciences, Health & Wellness, and Education & Public Services were the other sectors that raised more than USD 5 billion in the first half, driven by strong VC interest in Web3, Remote Work Infrastructure, Precision Medicine, Ed Tech: K-12, Telehealth, Next-gen Cybersecurity, AI Drug Discovery, EV Economy, and Climate Tech - Energy.

Which SPEEDA Edge industries attracted most VC funding?

Which industries attracted most VC funding in 1H 2022?
Values represent the amount of funding in USD millions • Includes only companies covered on the SPEEDA Edge platform • Funding rounds of companies mapped under multiple industries are duplicated
Source: Source: Compiled by SPEEDA Edge • Funding data powered by Crunchbase

Key takeaways

  • VC funding for SPEEDA Edge industries decreased by 25.7% HoH (-19.3% YoY) in 1H 2022, consistent with the slowdown in global funding. With interest rates at a record high, VCs seem to have tightened their purse strings during the first six months of the year, prioritizing more profitable investments over high-growth ones. Moreover, funding into industries that attracted a lot of VC interest at the onset of the pandemic, such as Remote Work, Ed Tech, and Telehealth, has started to normalize in the post-pandemic environment.
  • Despite a broader market decline, Pharma & Life Sciences, Energy & Climate Change, and Transportation & Logistics sectors still recorded higher 1H funding in dollar terms. In the Pharma & Life Sciences sector, it was more a case of recovery from a quiet 2H 2021 than growth, while diversification of climate investments into nascent industries was seen in the Energy & Climate Change sector. Strong money flow into Transportation & Logistics continued from last year; the sector was also the highest in terms of the average deal size.
  • The Financial Services, Work, and Security sectors were the top losers in dollar terms. Neobanks’ gloomy prospects and crypto-market woes impacted Financial Services funding, partially offset by strong VC interest in the FinTech Infrastructure space. In the Work sector, a demand shift from setting up remote working teams to managing them seems to have redirected the money flow from Remote Work Tools to Remote Work Infrastructure. Next-gen Cybersecurity companies struggled to raise new funds at previously inflated valuations in the Security sector.
  • Altogether, 26 SPEEDA Edge industry hubs raised more than USD 1 billion in 1H.FinTech Infrastructure was the highest, followed by Web3, Remote Work Infrastructure, Precision Medicine, and Neobanks. Telehealth and No-code Software topped the number of deals and were the only ones with 50+ deals during the period compared with six last half.
  • Most Big Tech investments were in the sectors that have raised significant funding in 1H.Google made 35 investments in 1H; most were in Work as well as Pharma & Life Sciences. Microsoft made ten investments with a couple each in the Energy & Climate Change as well as the Manufacturing and Retail sectors. Amazon’s eight investments were across multiple industries, while Meta and Apple did not make any investments within our coverage in 1H.

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