In the first quarter of 2017, deal-making slipped 47.45% from the same period a year ago, according to financial research platform VCCEdge’s latest Startup Deal Report, released on Tuesday. The industry also posted its lowest deal value in 14 quarters, dipping 46% from the previous quarter.
The volume of initial angel and seed investments halved, with 120 deals in the quarter ending in March – compared with 245 deals in the same period of 2016. And Series A funding, traditionally secured right after seed funding to expand the user bases and develop the business, also declined 65% in deal value from a year ago.
However, there’s a silver lining: Later stage funding picked up, with investors looking to more mature startups. Despite the number of Series B deals declining by 16% in the first quarter of 2017, compared to the same period last year, funding value climbed 22%. “A rise in Series B funding even as seed and Series A funding trends show a decline reflects investor cautiousness in early and mid-stage funding and the increasing focus…