Hi, Agen. Around the globe, we’re seeing patches of hope in the startup funding landscape. Venture funding to both Asia and Latin America hopped 8% in Q3. In Asia, that was led by rebounds in Israel and China. And in Latin America, funding to late-stage startups helped boost the overall numbers. At the same time, though, it’s clear this isn’t 2021 anymore: LatAm’s funding totals are far, far below their boomtime highs, and in the U.S. Atlassian just scooped up a former unicorn at a 35% discount to the company’s previous valuation. The two Asian countries facing the biggest geopolitical headwinds also saw the continent’s biggest rebound in Q3 venture funding. Israeli startups had their best quarter raising money since Q3 of last year, pulling in $1.4 billion in the most recent quarter. And China-based startups raised $14.1 billion last quarter, a 20% boost from Q2. Venture investment to Latin America is still far, far below its 2021 peak, but picked up a bit in the third quarter of this year, as later-stage dealmaking returned to the region. However, reported seed and early-stage investment was down sharply, indicating increasing wariness around backing less-established startups. Let’s take a look. Collaborative software giant Atlassian is buying video messaging startup Loom at a 35% discount to its most recent fundraising valuation. Funding to seed and early-stage startups in Europe continues to struggle. In fact, both amounts and funding deals in Q3 were at the lowest point since we began charting the downturn. But late-stage roared back — it doubled quarter over quarter, supercharged by large funding deals in the sustainable energy sector in multiple countries. Most VC-backed startups are not eligible to get a tax credit, despite the claims from busy Employee Retention Credit sales mills. Vanessa Kruze, founder and CEO of Kruze Consulting, shares some proactive steps VCs can take prior to funding a startup that has committed unintended tax fraud. |
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