After we first learn PitchBook’s knowledge on world enterprise funding in Q3, the primary conclusion that my colleague Alex Wilhelm and I reached was that startups around the globe wouldn’t be mistaken to anticipate one other quarter of declines.
As typical, the numbers are nuanced: European startups had been faring barely higher than the remainder of the world, seeing extra enterprise capital deployed within the third quarter than within the first two quarters of the yr. And, in fact, the enterprise investor adage holds true: Good corporations can at all times elevate cash.
The Alternate explores startups, markets and cash.
Learn it each morning on TechCrunch+ or get The Alternate publication each Saturday.
And it seems Canadian startups aren’t going to flee the misfortunes of the remainder of the world. As we speak, The Alternate is finding out knowledge from Tracxn that paints a reasonably gloomy image of the fundraising local weather within the nation. We additionally discovered a couple of AI-related nuggets, and have notes from a Canadian VC: Eva Lau of Two Small Fish Ventures (TSFV).
Cash’s not the one factor briefly provide
Funding to Canadian startups declined by 57% to $808 million in Q3 2023 from the earlier quarter, per Tracxn’s Geo Quarterly report. It’s additionally 84% lower than Canada’s report fundraising quarter, Q2 2021, when startups collectively raised $5.12 billion.
No new Canadian unicorns had been minted final quarter, both. The one firm that raised not less than $100 million, Toronto-based AI chip startup Tenstorrent, hit the $1 billion mark back in 2021.
That’s not all: Canada noticed fewer offers within the quarter, too, with solely 71 startups elevating cash in Q3 2023 in contrast 102 in Q2 2023, and 146 again in Q3 2022.