Venture Backed Funding Rounds Fell 57 Percent For Year In August

Venture investors remain concerned about the impact of inflation on global markets and the prospects for entrepreneurial companies. JL 

Ali Naqvi and Annie Sabater report in S&P Global:

The value of global venture capital-backed funding rounds fell 57.7% year over year in August to $21.31 billion, while the number of transactions was down 24.2%. The technology, media and telecommunications sector accounted for the largest share of the capital raised in August at 44.4%, followed by the healthcare and industrial sectors at 16.6% and 13.9%, respectively.

The value of global venture capital-backed funding rounds fell 57.7% year over year in August to $21.31 billion, while the number of transactions was down 24.2%, according to S&P Global Market Intelligence data.

The year-over-year values have continued to decline in recent months. The amount raised in August was also slightly lower than July, when $21.78 billion was pulled in, the data shows.

Companies based in Asia-Pacific received $9.1 billion across 554 funding rounds. U.S. and Canadian companies drew $8.7 billion across 476 transactions, while Europe secured $2.0 billion in 234 funding rounds.

TMT industry remains top target

The technology, media and telecommunications sector accounted for the largest share of the capital raised in August at 44.4%, followed by the healthcare and industrial sectors at 16.6% and 13.9%, respectively.

Top financing rounds

The largest funding round in August was for South Korean electric vehicle battery manufacturer SK on Co. Ltd., which raised roughly $1.51 billion. Korea Investment Private Equity, Stella Investment and East Bridge Partners Co. Ltd. were the investors in the round.

Next up was New York-based Tillman Global Holdings LLC, a privately held cell tower platform in the U.S., which secured $1 billion from The Carlyle Group Inc.'s fund Carlyle Global Infrastructure Opportunity Fund LP in a mature funding round.

Cruise ship operator Virgin Cruises Intermediate Ltd. Inc. held the third spot, raising $550 million in a funding round led by BlackRock Investment Management (UK) Ltd. Other backers included Bain Capital Pvt. Equity LP.