Year IN RevieW
A Year of Change
We completed ~$900MM in primary and secondary transaction volume, closed our flagship fund IV which brings our overall AUM to $1B+, and invested in 19 of the most innovative tech companies across the globe.
2022 was a transitional year, a year of change. After a wave of venture capital-fueled momentum and FOMO growth in 2021, 2022 ushered in an era where sustainability took center stage. Companies had to double down on their efforts for profitability and long-term staying power as the focus shifted from rapid expansion toward sustainable business models. Valuations across many startup sectors dropped drastically throughout the year while private funding slowed with investors becoming more demanding amidst increased market uncertainty.
Valuations have dropped precipitously, deal flow has slowed, and the market has had to adopt new strategies to focus more heavily on identifying scalable business models with the potential for long-term sustainability.
Uncertainty in the public markets has created challenges for late-stage private companies. Private funding has slowed, and the deal-making environment has turned increasingly investor-friendly as companies seek structured equity and venture debt financings to avoid raising capital in a down round. With the IPO market closed, liquidity time horizons are lengthening, and liquidity needs are exacerbated, this has made it more of a buyer's market than ever.
In this year of change, we believe there are still great companies with sustainable business models, and solid balance sheets, backed by the best VCs. We look to enter those companies either through discounted secondaries or through advantageous primary offerings.
Portfolio News
Over the past year, our portfolio of businesses have seen a slew of inspiring developments. From new product launches to exciting partnerships, there’s been plenty happening in and around these companies that are worth celebrating! Check out the highlights below
Epic Games
$86B
Strong progress toward building its metaverse
Klarna
$8.7B
Progress toward achieving profitability
SpaceX
$1.5B
Raise at increasing valuations
Lime
$4B
Leading provider of micro-mobility solutions
Themes We Believe In 2023 from American Dynamism
Startups that are determined to make an impact on nations and entrepreneurs creating solutions that drive continuous change will be at the forefront
Research Highlights
2023 Horizon
As we enter 2023, we anticipate seeing companies double down on their efforts for profitability, and the long-term staying power of sustainable business models is set to continue to new heights. Companies will continue to seek out strategies that leverage both innovation and patience - all necessary ingredients if they are truly looking for success!
We believe a lot of the opportunities are particularly in sectors like healthcare services, logistics, software development, fintech, artificial intelligence (AI), and eCommerce. These tech-focused investments look to be beneficial in the long run given that they often provide companies with an advantage over competitors through building a strong team or acquiring cutting-edge technology.
We are incredibly thankful for our community of innovative founders, trusted investors, team members, and extended business partners.
We wish you a happy and healthy 2023 and are excited to work with everyone in the MVP family in the coming year.
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