Tech startups in Seattle and the Pacific Northwest raised less than $4 billion in funding in the first half of 2022, down 20% from more than $5 billion in the first half of 2022, according to a new analysis of GeekWire’s startup funding list corresponds to the first half of 2021.
The calculations confirm and quantify the impact of the economic slowdown on startups in the region. Angel investors and venture capitalists have tightened their belts, urging portfolio companies to lengthen their financial runways. This caution is contributing to a wave of layoffs at tech companies.
GeekWire tracks tech funding deals in Washington, Oregon, Idaho and British Columbia as part of its coverage of Pacific Northwest startups.
More insights from the latest numbers:
- The total number of grants decreased to 138 in the first half of 2022, compared to 164 in the first half of 2021.
- For comparison, the total number of deals was 133 in the first half of 2020, at the start of the pandemic.
- Looking at just the second quarter of 2022, the total value of deals was $2.2 billion, up from $1.8 billion in the first quarter. However, this increase was largely due to some large deals (see list below).
- The total number of deals fell from 75 deals in the first quarter to 63 in the second quarter.
Anecdotal evidence points to similar trends nationwide, but quarterly earnings from PitchBook/NVCA and CB Insights are typically released later in the month. The Pacific Northwest slowdown follows record venture capital numbers for the Seattle area and Washington state in 2021.
Top 10 Pacific Northwest deals for the second quarter as tracked by GeekWire:
- Group14 Technologies, battery technology, $400 million.
- Convoy, Truck Marketplace, $260 million.
- Zap Energy, fusion power, $160 million.
- Agility Robotics, warehouse robot, $150 million.
- Echodyne, high-tech radar, $135 million.
- SirionLabs, Contract Lifecycle Management, $85 million.
- ProfoundBio, anti-cancer drug, $55 million.
- Flexe, on-demand warehousing, $67.9 million.
- Edge Delta, data analysis, $63 million.
- AccelByte, infrastructure for online gaming, $60 million.
A notable trend is the number of hardware companies at the top of the list. The region is historically better known for software, services, and cloud technologies, but hardware development is often more capital intensive.