CB Insights - VC goes plop

Hi there, 
 

Q3 VC activity is looking soft.

Global venture funding is at just $41.9B midway through the quarter.

If we project out, this looks like ~$83.8B across ~7K deals for Q3’22.

For context:

• Q1’22: $141.7B, 9.2K deals
• Q2’22:  $110.9B, 8.2K deals

At this pace, global funding is projected to decrease by 24% from last quarter (and nearly 50% year-over-year). This would also put the quarter a hair below Q3’20’s total ($84.7B). 

Of course, there’s still half of the quarter left so this could change bigly. 

But right now, a pretty dramatic decline appears to be in the cards for Q3.

New footholds

As more buying moves online, big tech is playing a central role in helping small merchants digitize their businesses.

This includes e-commerce enablement tech, digital merchandising, logistics and delivery, and digital ads & marketing support.

In particular, digitizing small businesses in emerging markets — where e-commerce is nascent and retail stores’ operations are largely analog — is giving big tech new global footholds.

Amazon, Meta, and Google are turning to investments and partnerships to support the growth of small businesses in countries like India and Nigeria. 

We map their activity and outline their strategies in our Big Tech in Retail report. 

Meet me by the forklift

The warehouse of the future will operate in total darkness. 

The space will be barely heated or cooled.

Robots, sensors, and advanced algorithms will have taken the place of human workers.

This highly automated system is called “lights-out warehousing.”

Before we reach lights-out, tech that augments the human worker — from cobots to exosuits — will proliferate first.

As the warehouse industry faces rising labor, equipment, and real estate costs, solutions that can supercharge efficiency are becoming more important than ever.

We cover the key technologies and players shaping the future of the warehouse here. 

Corporates keep coming

From September 2021 to June 2022, 40 of the top 100 public companies by market cap invested in companies in the blockchain/crypto space. 

Samsung was the most active, investing in 13 companies. UOB came in second with 7 companies backed, followed by Citigroup and Goldman Sachs with 5 each.

Read more on which public companies are investing in the blockchain ecosystem here.

All eyes on healthcare AI

Funding to the healthcare AI space has cooled in 2022 so far.

But despite the drop, healthcare remains one of the top sectors for AI deal activity. 

New applications for AI in drug R&D, diagnostics, and admin automation are gaining momentum.

We break down what you need to know about healthcare AI funding and the market drivers shaping the future of the sector in this client-only brief.

Wait a minute Mr. Postman

Packaging is getting smarter.

Early adopters of connected packaging and smart labeling tech are boosting their connection with consumers, improving product transparency, maintaining the cold chain, and more.

We map out 100+ companies innovating connected packaging and labeling across the supply chain here.

Forbes. Derek Saul (@derek_saul) covers SpaceX, Starlink, and government subsidies and cites CB Insights data. 

CryptoSlate. Christian Nwobodo (@theChriscen) reports on Alphabet's blockchain bets using CB Insights research. 

Payments Dive. Jonathan Berr (@jdberr) and Lynne Marek (@LynneMarek) discuss the executive flight following Marqeta’s IPO and quote CB Insights CEO Anand Sanwal (@asanwal).

P.S. Applications are open for the Digital Health 150 awards. Dreams do come true. Apply now before September 9.