Hi there, 

Our State of AI 2022 Report just launched. 

Want to dive into funding activity, top investors, unicorn births, and more? We include some data below, but you can grab your free copy right here.

And now, here is this week in charts.

Prepare for impact. Venture funding fell with each passing quarter in 2022, and it is projected to fall yet again in Q1’23. Current estimates indicate that venture funding for the quarter will come in at $56.3B — a 16% decrease from Q4’22. Deals are expected to take a nosedive as well, dropping from 7,830 to 5,792 over the same period. With dealmaking continuing to slow down, SVB’s impact on startups, investors, and the private markets will be huge as the data reveals here.

Cryptic crypto. Crypto is doing relatively well in 2023, even with the liquidation of crypto-focused bank Silvergate Capital on March 8. The day after, bitcoin was still up 30% from the start of the year and other cryptocurrencies had followed suit. However, bitcoin and ether were down 49% and 44% year-over-year, respectively. While crypto devotees expect prices to recover this year and crypto market caps are up from March 9, a number of challenges could stand in the way, like high inflation and further interest rate hikes. What could be in store for blockchain in 2023? Dive into key trends to watch here.

Talk of the town. While crypto consumed investor attention last year, times have changed, particularly in a world post-FTX’s bankruptcy. Amid growing hype surrounding the launch of generative AI tools like ChatGPT, Google Trends search interest in “AI” has overtaken “Bitcoin” and continued to climb. To learn more about what’s happening in the space stealing the spotlight from crypto, dive into our state of generative AI report.

Worst of times. Despite the harsh venture environment, 86% of US unicorn companies ($1B+ valuation) have increased their headcount since Q1’22. Now, with venture funding becoming even harder to attain and debt availability on the decline courtesy of SVB’s challenges, some of these companies are going to be in a tough spot. Companies, investors, and boards of directors that haven’t taken the time to seriously consider their expenses are about to be forced to do so. This means that startup layoffs will intensify in the near term. Dive into this SVB-driven phenomenon in this research brief.

Rise and shine. Annual AI funding dropped by 34% in 2022, mirroring the broader venture funding downturn. However, quarterly AI funding proved to be an exception to the overall venture rule. While venture funding decreased by 19% from Q3’22 to Q4’22, AI funding increased 15% over the same period. Defense tech startup Anduril raised the quarter’s largest round, securing $1.5B in Series E funding. Dive deeper into AI’s exceptional quarter in our State of AI 2022 Report.

Sacré bleu. How hard is it to use different colors?

I love you. 

Anand

@asanwal

P.S. We’re gathering a panel of healthcare experts to discuss big tech’s activity in the space. Register today to join them on March 21.
 

Painful priorities

Get complete transcripts with first-hand insights like these with Yardstiq, a new product from CB Insights that connects you with 1000s of analyst-led interviews with software buyers.

Reserve your Yardstiq subscription here.