2022 Was a Tough Year for Venture Capital Investing. But Funds Keep Growing.

Venture capital investing hit a rough patch in 2022, as the downturn in the economy and weakening equity markets rippled through the start-up world.

According to new data from the venture capital research firm PitchBook, total exits from venture capital investments—both acquisitions and initial public offerings—were just $71 billion in 2022, down more than 90% from $753 billion in 2021, as the new issue market effectively shut down, and merger-and-acquisition activity slowed. It was the worst year for VC exits in dollar terms since 2016.