![](/uploads/blog/blog-detail-04-937570863d.jpg)
We started building Twingate in 2019 to solve the challenges every company faces around securing access to resources. Despite massive changes in how we use technology over the last 30 years, the access control model that most companies rely on is frustratingly archaic. Passwords and VPNs have proven to not only be a major source of security breaches, but also frustrating for admins and users alike.
2022 began with fears of a downturn in the early-stage market after the historic highs of 2021, and ended with those fears fully realized. Activity rate (the share of startups that raised a round or exited) and positive activity (the share of startups that raised a round or exited at a valuation increase) fell by 5 percentage points in 2022 over the previous year—but that stat obscures the severity of the decline in the latter half of 2022.
Additional key findings from this quarter’s report include:
- Most popular early-stage markets
- Funding to female founders
- Investment volume by instrument
- Investment volume by round
- Startup spending activity
- Startup payroll spend
- Median startup revenues
- Startup spend by vendor
- Growth in VC dry powder
- VC predictions for 2023
The 2022 State of U.S. Early-Stage Venture & Startups report is written in collaboration with data partner Silicon Valley Bank. Our combined datasets offer detailed insight into how capital flowed into and out of early-stage startups in 2022.