The post-pandemic era was marked by a buoyant VC market, enhanced interest in technology companies and unprecedented level of capital being deployed across all stages of VC investing. The North American venture capital deal value reached USD 182 billion by end of 2021, up 29% from 2020, with an annual average growth rate of 14% since 2016. While overall Q2 2022 year-over-year quarterly VC deal count was down, it still exceeded pre-2021 quarterly totals – partly due to the strong environment of seed-stage investing. US venture capital firms raised $121.5 billion in the first six months of 2022, with funds of more than $1 billion accounting for nearly 64% of that figure. Canada’s VC ecosystem has also experienced considerable growth in recent years with 2021 setting a new record – $14.7 billion invested in Canadian start-ups.

The tightening monetary environment amid inflation concerns and frequent news of layoffs at VC-backed companies have made investors more cautious. Recent public market performance has shrunk valuations for many of these investors’ portfolios, causing some to reassess their strategies. As uncertainty continues to loom over global economy, key questions remain. How do VC funds plan to fend off recessionary trends and what portfolio-level strategies will support companies through to profitability? What’s the expected fallout of evolving economic conditions on the exit climate, IPOs, or the fundraising environment? propTECH 2023 brings together leading US and Canadian VC investors to reflect on and rationalize such pressing topics.