Silicon Valley Venture Capital Survey – Third Quarter 2022
By: Cynthia Clarfield Hess , Mark A. Leahy
Our survey analyzed the terms of 196 venture financings closed in the third quarter of 2022 by companies headquartered in Silicon Valley.
The number of venture financings in Silicon Valley remained stable from Q2 to Q3, with a notable shift in financings by series, including a solid uptick in Series A financings in Q3. Several metrics were relatively unchanged quarter to quarter, an exception being the marked drop across all series in the average price-per-share increase for companies raising funds in Q3 versus their prior financing round.
Historically speaking, part of the downward trend we see for 2022 is a return to normal from a spike in 2021. For example, our Fenwick Venture Capital Barometer™, which measures the direction of share price changes with post-Series A financings compared to the companies’ previous round, showed an average share price increase of 122% in Q3 versus 174% in Q2. While this reflects a notable drop quarter to quarter, in the last five years (Q4 2017 through Q3 2022), the average share price increase among companies we track is 119%.