Key Takeaways

• Funding Dives in Q3: Q3 saw $1.92 billion in funding across 296 deals, marking quarter-over-quarter decreases of 22% in funding and 23% in deal count. Although QoQ funding activity was down, YoY funding showed a 37% increase.
• Infrastructure Dominates Q3: Infrastructure projects continue to dominate from both a fundraising and deal flow perspective. Infrastructure deals garnered approximately $1.1 billion in fundraising, representing 59% of total quarterly funding and over 3x the next largest category.
• Seed Rounds Represent One-Third of Funding: Seed rounds were the leader in funding and deal count, comprising $559 million across 99 deals, representing 33% of funding and 36% of total deal count. Later-stage funding rounds remain scarce, with only three Series B and one Series D rounds.
• No Unicorns: Only six projects achieved valuations greater than $100 million in Q3, with the largest being Initia, at $350 million. No projects achieved a valuation of over $1 billion, compared to four companies in Q1 and two in Q2.
• Noticeable Subsectors: Three notable trends emerged throughout Q3, including a resurgence in AI-related projects, recognition of the importance of robust data solutions, and Web3 companies looking to disrupt the health and wellness sector.