The number of tech unicorns fell 40% in 2022 | Global Startup Ecosystem report
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As venture capital investments fell during the economic downturn, the number of tech unicorns fell 40% in 2022, according to the Global Startup Ecosystem report.
Last year, we saw a slowdown in the number of unicorns, with a global decline of 40% from 2021’s 595 to 359. However, seven ecosystems still produced their first tech unicorn in 2022, according to the report by Startup Genome and the Global Entrepreneurship Network (GEN).
The report said that a recession is a good time to invest in startups — high interest rates can benefit startups, concentrating capital and talent into ventures that create value. Startups funded during the Great Recession had slightly higher exit multiples over total money invested than those funded during economic expansions.
“Despite current economic challenges, we are confident that, equipped with the right knowledge, entrepreneurs, policymakers, and community leaders everywhere can leverage opportunities to come together and show how innovative technologies can not only continue to drive growth and job creation but simultaneously help save the planet and ensure a better future for everyone,” said JF Gauthier, CEO of Startup Genome, in a statement. “This essential mission cannot be put on hold while we wait out rocky economic times.”
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VC funding globally began its downward trend in the first quarter of 2022, dropping 13% from Q4 2021. Overall, 2022 declined by 35% from 2021, the report said.
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