2023 Impact in review
Issue 63 l Eka’s Weekly Roundup (23 February 2024)
Dealroom recently published their take on the Impact venture market for 2023. We pull out the key insights below.
Impact startups in 2023 raised $41 billion in venture capital. That’s down 36% from 2021-2022 levels.
The decline is in line with generalist fundraising trends, where $ deal amounts are down 35% year over year. Back in 2022, our thesis was that Impact startups were more resilient to the downturn (as evidenced by the funding data between 2021 and 2022). The market data suggests that is now changing.
The sum enterprise valuation of impact startups is now >$2tn (so all of Impact is worth less than Apple at $2.8tn). Most of this is in public companies (as has been the case for a while) but the share of private value as a % of total value is trending up.
Impact year in review 🗞️
1. Enterprise valuation is still down on 2021 highs but holding steady on 2022 base.
2. There are a lot more global impact unicorns… but these are tiny compared to the generalists.
3. Funding is diversifying away from VC and into project finance & debt
Week in Impact Articles ✍🏽
Monday: JP Morgan AM cuts ties with climate change action group
Tuesday: BSC Impact Report 2023
Wednesday: The Huberman-ization of America
Thursday: Tech Nation Global Talent Visa Report 2024: 10 Years of Global Talent in UK Tech
Friday: Don't Die: The Rise of Longevity Technology
3 Key Charts 📊
1. Investment in UK tech has reached a >$1tn in value
2. Quality of life is the most cited reason to move to the UK for tech talent
3. Star accelerators range from generalists to sustainability-focussed
Getting in Touch 👋.
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