State of the Markets

A review of the health and productivity of the innovation economy  

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Key takeaways

The innovation economy has slowed down. Investment has fallen from recent highs, valuations are rebasing and exit markets remain mostly closed. Companies have reacted to these changes by reducing net burn. However, historical data shows that the number of unicorns founded during and after recessions increases.


US VC dry powder hit a new high in 2022. However, if the economy continues to tip down in 2023, we can expect delayed deployments.


US VC investment in 2022 was down 31% from the record high in 2021 but still the second highest year ever.


US VC-backed tech companies reduced net burn YoY in Q4 as they sought to extend runway, improve efficiency and reach profitability.